Twitter, Inc. (TWTR) stock fell more than 7% today, with a closing stock price of 28.68-2.41 (-7.75%). Chesapeake Energy Corporation (CHK) stock plunged more than 30%, with a stock price of 17.50-9.35 (-34.82%). Amazon.com, Inc. (AMZN) stock rallied more than 4%, with a stock price of 2,474.00+101.29 (+4.27%). Amazon stock will probably move today after the close with the latest earnings report. Apple Inc. (AAPL) stock moved higher closing at 293.80+6.07 (+2.11%). Again its stock price could move after the close today with the earnings report.
Russell 2000: 1,315.99,-44.77(-3.29%) Crude Oil: 17.37,+2.31(+15.34%) Gold: 1,693.20,-20.20(-1.18%)
Stock market data: Yahoo Finance
Stock market commentary
The stock market today is declining as the latest jobless claims report was worse than expected. 3.8 million persons filed for the unemployment benefits, with the consensus being 3.5 million. Small-cap stocks decline the most after the most outperformance of the Russell 200o index.
A stock market rally on treatment hopes about coronavirus sent all three major stock indexes closing up with gains more than 2%. Dow gained more than 50o points. The US stock market at close on April 29, 2020:
The stock market ignores the state of the economy, it is not logical
With the recent stock market rally, stocks tend to ignore all the negative economic news that are fundamental for the valuation and prospects of stocks. The US GDP contracted 4.8% for the first quarter of 2020 on an annulaized basis, the unemployed persons ahve surpassed allready 26 million, the Fed warned about decline in the economic activity, companies avoid to make a guidance about the rest of 2020. Still bottom fishing in stocks and the fomo effect are dominant. When greed rules over fear this is not sustainable. Take for example the airline stocks which rallied on April 29, 2020. These stocks have a very uncertain economic outlook for the rest of 2020, and some companies without the support and aid of the US government may have filed for bankruptcy. This does not make sence from a fundamental and valuation analysis. But trading is different than investing.
The stock market ignores for now bad news, this is worrying
What about stocks that have rallied and may soon file for bankruptcy? Same story here. Traders have bought stocks ignoring the fundamentals of stocks.
Chesapeake Energy Corporation (CHK) stock closed at 26.85-2.33 (-7.98%).
“Exclusive: Chesapeake Energy preparing bankruptcy filing – sources”
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