Disappointing Gilead drug report snuffs Thursday rally

Toronto and New York indices were rallying until midday Thursday when “inconclusive” results were released about Gilead’s COVID-19 treatment. Many investors were betting on the drug, remdesivir, after trial results were mistakenly published on the World Health Organization’s website earlier this month. Gilead tumbled 4.34%. The main New York indices closed flat, and the TSX shed 0.26%.

In Toronto, only energy and materials finished in the green, as oil continued to rebound from historic lows early this week. Paramount Resources was the biggest gainer, soaring 30% and led a big pack of oil names that included Cenovus Energy, rallying almost 7% in heavy trading. WTI and WCS continued to climb, both rising $3 to $17 and $8 (respectively) per barrel.

Likewise on Wall Street, Schlumberger climbed 7.69%. Meanwhile, investors continue to hunger for food stocks as Beyond Meat jumped 12.8%. Otherwise, on the Dow healthcare, energy and industrials gained. For once, tech stocks had a quiet, flat session. After hours, Intel dropped 5% on a negative earnings report. Given this relatively quiet session, the VIX slipped modestly by -1.43%, which is welcome news to investors rocked by wild swings in the past two months.

🧫 Gilead Sciences Inc. -4.34%
🛢 Paramount Resources +30%
🛢 Cenovus Energy +7%
🛢 Schlumberger Ltd. +7.69%
🥩 Beyond Meat Inc. +12.8%
💽 Intel -5%