29.04.2020 DOW JONES Daily Analysis

29.04.2020 DOW JONES Daily Analysis

The Dow Jones closed  Tuesday's trading session at $24101.55(0.13%) losing 32.23 points but soared early on Wednesday morning in pre-market sessions. On Tuesday the stock market closed all red but Wednesday is showing signs of massive improvement especially for the Dow Jones that's being pushed up by Alphabet's Google, one of the Dow's components. Google Inc released its first-quarter earnings on Tuesday and as expected the results weren't as expected with ad sales dropping more than 10%. Of course, this can all be attributed to the novel Covid-19 and the effects it has caused around the world. However, Chief Financial Officer Ruth Porat said the company is cutting down costs to withstand the losses. The company is also planning to reduce expenditure on global facilities and hiring and instead plans to focus on its stock buyback program. This bit of news saw the company's stock jumped more than 7% in overnight trading and currently its pre-market value is $1331 higher than it's $1232 closing price. Since Google is one of the biggest stocks in the Dow Jones this pushed the Dow Value up also.   Google reported a boom in its cloud business and other stocks with cloud businesses like Microsoft and Amazon jumped. Microsoft stock went up because it has invested a lot in Cloud business and so investors were quick to jump on the wagon in order to be part of the win since Microsoft will be releasing their First Quarter earning report on Wednesday. Microsoft is also a Dow stock.   The reason why the Index is also holding up is that more and more states are hinting at reopening their economies, or parts of their economies soon, some companies like Boeing, General Motors and Ford are also targeting Mid May to resume production.