Stocks rebound as Gilead says remdesivir can reduce risk of death

Jessica Menton
USA TODAYPublished 10:05 AM EDT Jul 10, 2020Stocks bounced back Friday following a sharp selloff, as upbeat news about a potential coronavirus treatment helped mitigate fears about another spike in outbreaks.The Dow Jones industrial average climbed 100 points, after sliding more than 360 points a day earlier on renewed concerns about a surge in virus cases. The Standard & Poor’s 500 ticked up 0.2%, after posting just its second loss in the past eight days on Thursday. The broad index is on pace to close out the week 0.5% higher. Stocks recouped some of their premarket losses after Gilead Sciences said its antiviral drug remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients. Gilead Sciences jumped 2%. The Nasdaq Composite dipped 0.4%, after hitting another record Thursday. The gains come after Thursday’s selloff as investors weighed a rise in virus cases in the United States on the back of improving economic data. “For the economy to fully open up and recover, a sustained rebound will likely depend on controlling the virus through a combination of vaccines and therapeutics during the second half of 2020 and beyond,” Michael Sheldon, chief investment officer and executive director at investment advisor RDM Financial Group at Hightower, said in a note.Want a cheap mortgage?: Move to these citiesLayoffs: 1.3M workers file for unemployment as COVID-19 spikes and businesses close againU.S. government data showed 1.3 million workers filed for unemployment claims last week. That is down from 1.4 million the prior week and a peak of nearly 6.9 million in late March.The improvements have helped validate investors’ optimism that the economy can recover as anti-virus controls are relaxed. That helped the S&P 500 rebound to within 7% of its record, after being down nearly 34%.But economists point to a troubling shift in positive indicators, including moderating declines in the four-week average of jobless claims.Investors are worried that worsening infection levels in the populous U.S. states of Florida, Texas and California could derail a recovery. Some states are rolling back their reopenings, while others are ordering people arriving from hotspots to quarantine.The U.S. has surpassed 3 million confirmed cases of COVID-19, the disease caused by the novel coronavirus. More than 133,000 deaths have been confirmed, according to Johns Hopkins University data. Globally, there have been 12 million cases and over 555,000 deaths.In energy markets, benchmark U.S. crude lost 58 cents to $39.04 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, declined 51 cents to $41.84 per barrel in London.In Europe, the CAC 40 in France added 0.4% to 4,938, while Frankfurt’s DAX gained 0.5% to 12,548. The FTSE 100 in London gained 0.5% to 6,079.In Asia, the Shanghai Composite Index lost 1.9% to 3,383.32 and the Nikkei 225 in Tokyo shed 1.1% to 22,290.81. The Hang Seng in Hong Kong retreated 1.8% to 25,727.41.Contributing: The Associated Press


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