Wall Street Kicks Off Q3 With More Gains As Stimulus Boosts Stocks By Investing.com




By Jesse Cohen

Investing.com – After wrapping up its best quarter in decades, stocks on Wall Street kicked off the third quarter with more gains as the economy tries to recover from the coronavirus pandemic.

The rose 3.3% this week while the jumped 4% in the same time period. It was the Dow and S&P 500′s biggest weekly gains since June 5.

The tech-heavy , meanwhile, climbed 4.6% this week for its biggest weekly increase since May 8.

The strong weekly gains follow the market’s best quarterly performance in decades. The Dow ended the second quarter with a 17.8% gain, its biggest quarterly rally since 1987.

The S&P 500 scored its biggest single-quarter surge since 1998, soaring nearly 20%.

Meanwhile, the Nasdaq soared 30.6% for the quarter, its best quarterly performance since 1999.

Stocks have rallied sharply in recent months, with all three benchmarks up more than 40% from their lows set on March 23 – when coronavirus-related lockdowns shocked the stock market – as a barrage of stimulus from the Federal Reserve and the U.S. government boosted risk appetite.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Wall Street Posts 4th Weekly Gain In Last 5 Weeks On More Stimulus Hopes By Investing.com




By Jesse Cohen

Investing.com – Stocks on Wall Street posted their in the last five weeks as the Federal Reserve’s extra stimulus lifted the market.

The U.S. central bank announced on Monday that it would of up to $250 billion in individual corporate bonds to support liquidity and credit for large employers.

Investors were also encouraged by reports that President Donald Trump is considering launching a stimulus plan to boost the U.S. economy.

The rose 1% this week, the gained 1.8% on the week, while the tech-heavy outperformed, jumping 3.7% this week.

Stocks have rallied sharply in recent weeks, with all three benchmarks up more than 40% from their lows set on March 23, as a barrage of stimulus from the Federal Reserve and the U.S. government boosted risk appetite.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Main Street’s boldest take on Wall Street in bankruptcy stock frenzy By Reuters



© Reuters. The desk of car rental company Hertz is seen at Nice International airport

By Krystal Hu

NEW YORK (Reuters) – When Bryan Quevedo received his U.S. government stimulus check last month, he invested $1,000 in the stock of bankrupt car rental company Hertz Global Holdings Inc (N:).

The 22-year-old Los Angeles delivery driver made the trade on Robinhood, an app that allows mom-and-pop investors to buy and sell shares. A marketing graduate who has struggled to find an office job amid the COVID-19 pandemic, Quevedo analyzed Hertz’s share price movements to predict that the stock had hit bottom. After four days, he had doubled his investment.

It is a trade that goes against Wall Street norms and is not for the faint-hearted. Hertz has warned that its bankruptcy process could render its shares worthless. Investors are betting on how high they can push the shares and are risking big losses if they can’t quickly flip them to someone else.

“I’m just waiting for the price to go higher or break even so I don’t lose any capital,” said Quevedo, who has since invested another $450 in Hertz’ stock. He posted a screenshot of his profits in his Robinhood account on social media and recommended the trade to several friends.

Hertz did not immediately respond to a request for comment.

Quevedo is one of tens of thousands of traders who sent Hertz’s shares rallying a few days after it filed for bankruptcy protection on May 22, many of them on the Robinhood app. Other shares of bankrupt companies, such as J. C. Penney Company Inc (PK:) and Whiting Petroleum Corp (N:), have seen similar rallies. Shares in some obscure penny stocks have soared.

Pundits have struggled to explain the frenzy of speculation. Record savings, low interest rates and even lockdown boredom in the wake of the coronavirus outbreak have all been cited as possible explanations for the extraordinary market moves.

Robinhood did not respond to a request for comment on the surge of trading of bankruptcy stocks on its platform.

A Reuters review of social media posts identified a bustling community of amateur traders who are defying warnings from finance experts and are betting they can outsmart Wall Street. Many say they vying for quick profits and hope not to be the ones left holding the bag if the shares they invest in suddenly collapse.

“I see a lot of people missed the boat to get rid of Hertz’s stock. I like that gamble. That’s what I do with my bar money,” said Joseph Madison, an urban planner in Atlanta, Georgia. A cryptocurrency investment veteran in his early 40s, Madison said he scored a return of 174% by investing “a few hundred bucks” in Hertz’s stock over the past few weeks.

Hertz itself has noticed. It launched an effort this week to sell $500 million worth of its stock in the open market, a remarkable move for a company in bankruptcy.

This has still not put off some investors. Hertz’s stock is up 388% from the low it hit after it filed for bankruptcy. It remains among the most popular stocks traded on Robinhood.

A few investors say they will hold onto their Hertz stock, despite the risk of being wiped out. Sherrie Hardy, a 33-year-old airport security worker in Muskegon, Michigan, said she used her and her fiancée’s stimulus checks to invest in Hertz and have no plans to sell.

“I invested not only in a sense of capitalizing, but actually want to be a supporter of Hertz. I’ve always had good business with them and their community efforts. So it’s something that I would like to see to stay around for the years to come,” Hardy said.

“We all know, when we get into the stock market, it is a gamble of some sort.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Up as Wall Street Tries to Shake Off New Covid-19 Panic By Investing.com



© Reuters.

By Barani Krishnan

Investing.com – Wall Street is trying to shake off the Coronavirus 2.0 terror, and oil is following suit.

Crude oil futures rebounded from losses of more than 5% to trade in the positive on Monday after White House Economic Adviser Larry Kudlow said President Donald Trump was determined not to close the U.S. economy again over a new surge in Covid-19 cases — despite the autonomy for such a decision resting with state governors.

“The President is absolutely disinclined to shut down as is the vice president,” Kudlow told the Fox News network. ““I think shutting down the economy could be worse for our health than not shutting it down. When you look at the overall numbers and these specific new cases, it’s still rock-bottom and has flattened. We’re watching it very carefully.”  

Kudlow spoke as 20 of the 50 U.S. states, including Texas, South Carolina, Utah, Arizona, North Carolina, Arkansas, Alabama, Oregon, California, Nevada, and Florida reported seven-day rolling average highs for new Covid-19 infections. The total number of cases since the February outbreak now stands at 2.2 million. 

New York-traded , the benchmark for U.S. crude, was up 44 cents, or 1.2%, at $36.70 per barrel by 1:40 PM ET (17:40 GMT). It fell as much 5.2% earlier.

London-traded , the global benchmark for oil, gained 71 cents, or 1.8%, to $39.44. It lost 3.8% at the lows of the session.

WTI and Brent both lost just over 8% last week for their worst weekly decline since mid-March. Prior to that, oil had traded virtually one way over six weeks, with WTI gaining 300% at one point from an April bottom of around $10 while Brent showed a 170% rise from a low of beneath $16.

Despite those gains, both benchmarks remain down about 40% on the year.

Monday’s rebound in oil came after Wall Street’s pulled back from a drop of more than 2% earlier to trade just about a quarter percent down at the lunch break.

Crude futures also recovered from their lows on reports that Iraq was living up to its bargain on OPEC+ production cuts, with a commitment to cut at least 15% of its oil exports in June.

“Oil prices are mirroring U.S. equities as lingering virus concerns weigh on the outlook for crude demand,” said Ed Moya, an analyst at New York’s OANDA. 

“WTI crude is likely to struggle to break out of its $34-40 range anytime soon. But renewed optimism about OPEC+ production cuts could remain in place too if we see a second wave of Covid-19 concerns intensify as oil producers will refuse to let the market enter into another free fall.” 

Besides the virus and shutdown worries, deteriorating demand fundamentals had also weighed on oil since last week.

U.S. grew by 5.72 million barrels during the week to May 5 to reach a record high of 538 million barrels, according to data from the Energy Information Administration.

, led by diesel, meanwhile, soared 1.6 million barrels during the week, and grew by a total of nearly 53 million barrels over nine weeks, EIA data showed.

For its data set on the May 12 week — due Wednesday — the EIA is expected to announce a crude build of 1.7 million barrels versus a previous build of 5.7 million, according to a consensus of analysts’ estimates tracked by Investing.com. Separately, Seevol.com reported that crude stockpiles at the closely-watched Cushing, Oklahoma, hub that serves as storage for oil delivered against expiring contracts, fell by 1.8 million barrels during the week to May 12.

Distillates are expected to have risen 3 million last week, double that of the previous week, according to analysts’ estimates of EIA data.  

, the one bright spot on the oil complex so far, is expected to have risen by 71,000 barrels versus a previous build of 866,000 barrels.

 



Wall Street Week Ahead: Investors bet bounce in value stocks will stick


NEW YORK (Reuters) – As the U.S. economy begins to emerge from the sharp slowdown during the coronavirus pandemic, some fund managers have been drawn to value stocks, a sector that underperformed during the recent rally.

FILE PHOTO: Pedestrians walk past the New York Stock Exchange as the building opens for the first time since March while the outbreak of the coronavirus disease (COVID19) continues in the Manhattan borough of New York, U.S., May 26, 2020. REUTERS/Lucas Jackson

Value stocks, which typically sport lower price-to-earnings valuations, tended to underperform growth stocks during the bull market that ran for more than a decade and ended this year.

That pattern has recently reasserted itself: The S&P 500 Value index was up just 4.5% over the last month compared to a 5% gain in the S&P 500 Growth index.

Yet better-than-expected readings on U.S. employment and other indicators have money managers thinking about lightening up on the stocks driving the rally in favor of sectors such as financials and energy. A sustained bounce in these economically sensitive areas could be an encouraging signal for the nascent recovery, investors said.

The coronavirus pandemic “reset the economy back to a recession, and now you’re in a brand new economic cycle. That typically favors value names,” said Ernesto Ramos, head of equities at BMO Global Asset Management.

Ramos has been buying shares of companies he believes will get a boost when consumer spending rebounds, including Sprouts Farmers Market Inc. Shares of the company trade at a trailing price two earnings ratio of 15.5, well below the broad S&P 500’s trailing ratio of 22.2. He also owns shares of PepsiCo Inc and U.S. supermarket chain Kroger Co.

Phil Orlando, chief equity market strategist at Federated Hermes, has been shifting away from technology and healthcare stocks and into financial and energy companies. Technology stocks in the S&P 500 are up nearly 30% since the start of April, while finanical stocks are up 20%.

“We think they will provide leadership here as the market starts to shift from a risk-off position to more of a risk-on,” he said.

Investors will watch a raft of U.S. data next week including retail sales and business inventories for more evidence of an economy on the mend. On Thursday, the S&P 500 notched its biggest daily drop since mid-March after a cautionary economic forecast from the U.S. Federal Reserve and concerns over a possible resurgence of Covid-19.

“We’ve always said that what started with the virus will end with the virus,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management.

Increased uncertainty over growth or the pandemic’s trajectory could push investors back into the growth companies that have delivered performance in recent months, even as the U.S. economy reeled from countrywide shutdowns, she said.

Despite those concerns, some fund managers who have benefited from the jump in momentum stocks are becoming more cautious, expecting that value will soon regain favor.

“In the short-term, people have been hiding out in a handful of names,” said Mike Lippert, portfolio manager of the Baron Opportunity Fund. “Sooner or later we will get a real economic recovery and from that point the stocks that were thrown out will lead the market.”

Reporting by David Randall; Editing by David Gregorio



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Asia stocks set to gain after recovery hopes push Wall Street higher


NEW YORK (Reuters) – Asian stocks were set to climb on Tuesday as confidence in an economic recovery pushed the Nasdaq benchmark to a record high, although doubts about crude supply cuts were likely to keep oil prices under pressure.

FILE PHOTO: A man wearing a protective face mask, following the coronavirus disease (COVID-19) outbreak, walks in front of a stock quotation board outside a brokerage in Tokyo, Japan, May 18, 2020. REUTERS/Kim Kyung-Hoon

Markets have been encouraged by a May U.S. jobs report last week that showed a surprise fall in the unemployment rate, bolstering views that the worst of the downturn is over and that the economy was moving towards a quick rebound.

“The jobs report blew away expectations and the numbers were unparalleled in history,” said Thomas Hayes, chairman of Great Hill Capital in New York. “We’re starting to see in the market the magnitude and speed of U.S. government intervention and the market is now looking through the short-term negative numbers from GDP towards a much stronger recovery.”

Australian S&P/ASX 200 futures were up 0.67% and Hong Kong’s Hang Seng index futures rose 0.52%. However, Japan’s Nikkei 225 futures were down 0.04%.​

The Nasdaq hit a record high close on Monday, becoming the first of Wall Street’s three main indexes to bounce back from the market crash caused by the pandemic.

Financial, automotive and retail-oriented and energy shares – the stocks most beaten-down since the pandemic slammed markets – have been leading equity indices higher recently.

U.S. stocks also added to gains late in the trading session after the Federal Reserve eased the terms of its “Main Street” lending program to encourage more businesses and banks to participate.

On Wall Street, the Dow Jones Industrial Average rose 1.7%, the S&P 500 gained 1.20% and the Nasdaq Composite added 1.13%.

Oil prices fell after Saudi energy minister Prince Abdulaziz bin Salman said on Monday that the kingdom and Gulf allies Kuwait and the United Arab Emirates would not cut an extra 1.18 million bpd in July as they are doing this month.

The Organization of Petroleum Exporting Countries and others had on Saturday agreed to sustain cuts equal to about 10% of global oil supply.

U.S. benchmark crude fell $1.36 a barrel to settle at $38.19 a barrel, while Brent settled down $1.50 at $40.80 a barrel.

In currency market, the dollar slid and commodity currencies gained as risk appetite ramped up. The New Zealand dollar rose to its highest in nearly four months after the government said it had stopped local transmission of the coronavirus.

The dollar index fell 0.053%, with the euro up 0.02% to $1.1294.

The Japanese yen weakened 0.01% versus the greenback at 108.44 per dollar, while sterling was last trading at $1.2733, up 0.09% on the day.

Yields on top-rated German government bonds dipped but remained near more than two-month highs hit last week on the back of improving sentiment in world markets.

U.S. Treasury yields also fell, with the 10-year note down 2.8 basis points at 0.8785%. Gold rose after a steep decline, boosted by hopes of a dovish monetary policy outlook from the Federal Reserve after the U.S. central bank ends a two-day meeting on Wednesday.

Investors are now seeking clarity from Fed Chair Jerome Powell on monetary and fiscal policies.

U.S. gold futures settled up 1.3% at $1,705.1 an ounce.

Reporting by Chibuike Oguh in New York; Editing by Sam Holmes



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Once targeted by officials, street vendors make unexpected comeback in China By Reuters


13/13

© Reuters. Street vendor waits for customers at his stall on a footbridge in Beijing

2/13

By Lusha Zhang and Ryan Woo

BEIJING (Reuters) – Three weeks ago, Beijing authorities swooped in on Shan Peng and her makeshift street stall, seizing her merchandise – yogurt and casual pants – and even her electric tricycle.

She was used to police evictions.

“Just raise your gun an inch, sir, and we peddlers would be able to get by,” she would say, begging them to let her off.

In the same busy alley today, the 51-year-old was selling shrink-wrapped bacon out of a cardboard box – unharassed.

Shan hoped to take home at least 100 yuan ($14) a day. She has mouths to feed – her elderly mother, a dog she rescued from a shelter, and herself, a cancer patient.

Street stalls, seen officially as a blight on China’s modernising urban landscape, are making an unexpected comeback in a year of rare economic pain.

At the annual session of parliament last month, the livelihoods of ordinary people were widely discussed. Afterwards, Premier Li Keqiang told reporters 600 million people still live on monthly salaries of 1,000 yuan.

The spectre of mass unemployment has sharpened the focus of China’s top leadership on low-income groups with little financial backup to cope with job losses.

In a U-turn, authorities said last week local governments will not be assessed by the number of roadside vendors in their cities this year. In the past, municipal officials were awarded high marks for eradicating hawkers.

The premier also gave his blessing. During a visit to a seaside town in Shandong province, Li said the “street stall economy” was the light of humanity and the vitality of China.

READY, GET SET

With uncharacteristic speed, cities like Shanghai and Chengdu have taken steps to promote their street stall economies. Even Wuhan – former epicentre of China’s COVID-19 outbreak – joined in as the coronavirus threat receded.

E-commerce giants pledged support. Alibaba (NYSE:) and JD (NASDAQ:).com said they would sell merchandise to street-stall owners on credit. Pinduoduo (NASDAQ:) will offer discounts on a range of “must-haves” for setting up a stall such as flashlights and small fans.

Wuling Motors said a newl mini truck specially designed for street stalls received more orders on Wednesday alone than all of May, official media reported. Its Hong Kong shares rose over 200% this week.

Dongfeng Motor Group and Jiangling Motors Corp (JMC) said some of their vans can be modified to suit vegetable sellers or BBQ street food vendors.

Meanwhile, a PDF book of unknown authorship on how to be a successful street peddler found fame on social media this week.

According to “The Secret Manual of Street Stall Business”, only the latest mobile phones must be sold, and there should be no displays of bras and panties, for “no young girl would dare to buy them in the open”.

LUNCH MONEY

Some economists say street stalls will not make much difference to gross domestic product, but reflect the enormous pressure on the government to stabilise employment and curb any social unrest.

“It’s an emergency and temporary solution to the unemployment woes brought on by the coronavirus,” said Nie Wen, economist at Shanghai-based Hwabao Trust.

Wang Kang, 38, works at a mobile payment company. But with his salary slashed by 30%, he started hawking t-shirts and toys in the evenings.

“I’m here because I need the money,” he said. “Even if it’s just tens of yuan per night, that’s enough for lunch.”

Yi Shaohua, a researcher at the Chinese Academy of Social Sciences, China’s top state think-tank, said the street stall campaign will at least help lift people’s spirits.

“The upshot is it’ll get people out of their homes, add liveliness to the streets and thus help boost economic confidence,” Yi said.

(This story was refiled to fix typo in paragraph 13)



Wall Street Rally Goes Global as Weak Dollar Lifts All Boats By Bloomberg



© Reuters. Wall Street Rally Goes Global as Weak Dollar Lifts All Boats

(Bloomberg) — For investors wondering how markets can keep rallying in the midst of economic disaster, just look to the weakening dollar.

Its descent to a three-month low is adding a pillar of support to the bullish foundations powering risk assets across the globe this week. Emerging markets, commodities and equities have surged as money managers look beyond unemployment headlines, and focus on central bank stimulus and business reopenings.

While the greenback’s decline is one sign that risk appetite is rising, it’s also adding extra fuel to the fire. A lower U.S. currency makes American goods cheaper overseas, helping companies boost earnings.

It also eases financial strain among emerging-market countries by allowing them to repay dollar-denominated debt more easily, and boost hard commodities like gold, and oil that are priced in the currency. Plus, there’s an added boost to inflation expectations, which benefits stocks most likely to profit from a stronger economy.

In the past month, the dollar weakened against all but two major currencies. The Bloomberg Dollar Spot Index slid 0.2% on Thursday, extending an almost 7% retreat from a recent high on March 23. The jumped 30% and copper gained 19% in that time.

The Dollar Is in a Funk and That’s a Good Sign for the Economy

“The falling dollar is a big deal as it eases financial conditions,” said Mark Nash, the head of fixed income at Merian Global Investors in London. “Fiscal stimulus, balance sheet growth of banks and the Fed are a good part of solving the problems we had before, which was not enough lending and dollar strength globally.”

The dollar’s decisive retreat signals that the global liquidation rout for the history books in the depths of the March madness is now over. That’s a risk-on signal for Wall Street banks recommending international trades to clients including high yield and emerging-market debt around the world. The premium investors demand for holding 10-year Italian bonds over benchmark German debt has come down by 88 points from this year’s peak in March.

Carry traders that thrive on a weak dollar to buy higher-yielding emerging-market currencies are also on a high. A Bloomberg currency index that measures carry-trade returns from eight developing nations, funded by short positions in the greenback, posted its first positive month this year in May.

“It is usually the case that when the dollar is not soaking up liquidity i.e. rising, there is room for credit to perform,” said Luke Hickmore, who oversees about $3 billion as investment director at Aberdeen Standard Investments in Edinburgh.

Hickmore is turning to riskier assets such as credit, though he acknowledges that the rally is largely running on central bank stimulus. There’s a good chance that worries about corporate health will come back into the picture later this year, and bring a wave of ratings downgrades.

“I have been very skeptical to say the least about a broad risk-on move. However, the high frequency economic data is improving and we are still getting massive fiscal and central bank buying,” Hickmore said. “It is, on balance, time to be risk-on, but maybe not up to the max budget.”

Tug-of-War Between Bulls and Bears Is Muddling Risk Signals

There’s also skepticism that the dollar’s weakness will last, especially in the middle of a recession. Bank of America (NYSE:) Merrill Lynch’s Athanasios Vamvakidis, the head of G-10 FX strategy, says the team is expecting a 4.3% drop in global economic growth, deeper than the consensus view for a 3% contraction.

“Investors expect a recovery of the global economy after the lockdown,” he said. “The recovery is going to be very weak, as economies cannot really go back to normal.”

Jack McIntyre, a portfolio manager at Brandywine Global Investment Management, is more optimistic. He’s buying up higher risk assets and currencies to take advantage of the “backstop” from the Federal Reserve, and pointed to the violent U.S. protests as part of the reason behind the dollar’s poor performance.

“When I looked at the riots and the way the U.S. is handling the coronavirus pandemic, I thought, ‘Oh my God, we are coming apart at the seam,’” McIntyre said in an interview. “Maybe the U.S. is losing some of its exceptionalism. The dollar has been overvalued for a long time, and this might finally be a catalyst for the dollar to weaken.”

(Updates with dollar move in fifth paragraph.)

©2020 Bloomberg L.P.

 





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Wall Street gains on Boeing boost, recovery hopes By Reuters



© Reuters. The spread of the coronavirus disease (COVID-19) in New York

By Shreyashi Sanyal

(Reuters) – A jump in Boeing shares lifted Wall Street on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country.

Boeing Co (N:) rose 10% and was the top boost to the blue-chip Dow Jones index () after billionaire investor Daniel Loeb’s Third Point (NYSE:) said it took a stake in the planemaker.

Microchip Technology Inc (O:) surged 11% after the chipmaker raised its forecast for current-quarter sales and profit as it begins making up for lost production due to the pandemic.

Data on Wednesday showed signs of stabilization in the domestic labor market after the ADP (NASDAQ:) National Employment Report said private employers laid off another 2.76 million workers, lesser than an expected 9 million job losses.

The data comes ahead of the Labor Department’s more comprehensive jobs report on Friday and initial jobless claims data on Thursday.

Supporting the mood further was the Institute for Supply Management’s (ISM) reading, which showed U.S. services industry activity pushed off an 11-year low in May.

The Nasdaq index () is now just 1.8% away from a record high hit in mid-February, rising in seven of the past eight sessions, while the S&P 500 () remains 8% below its all-time high as steadying economic data, unprecedented stimulus measures and the lifting of lockdowns have raised bets on a post-pandemic economic recovery.

“There is a growing feeling that we are over the worse of the economic pain caused by the pandemic,” said David Madden, market analyst at CMC Markets UK in London.

“The fact that last month’s reading (ADP report) was only a fraction of the April update, could be an early sign that we have moved past the most painful point and when you factor in the improvements in the U.S. services data, it shows the economy is in a less awful state.”

Markets have largely looked past brewing Sino-U.S. tensions and protests in the United States over the death of an unarmed black man at the hands of the police.

U.S. protesters ignored curfews overnight as they vented their anger, but there was a marked drop in the violence that prompted President Donald Trump to threaten to deploy the military.

At 11:46 a.m. ET the Dow Jones Industrial Average () was up 433.89 points, or 1.69%, at 26,176.54, the S&P 500 () was up 36.77 points, or 1.19%, at 3,117.59 and the Nasdaq Composite () was up 57.91 points, or 0.60%, at 9,666.29.

Ride-hailing firm Lyft Inc (O:) rose 9.3% after reporting a jump in rides on its platform in May from the prior month.

Coty Inc (N:) jumped 6.3% after the cosmetics maker said it was in talks with reality TV star Kim Kardashian West on a possible collaboration for a beauty line.

Advancing issues outnumbered decliners for a 4.28-to-1 ratio on the NYSE and a 2.51-to-1 ratio on the Nasdaq.

The S&P index recorded 30 new 52-week highs and no new low, while the Nasdaq recorded 81 new highs and three new lows.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Wall Street ends mostly higher as U.S.-China spat simmers


(Reuters) – U.S. stocks finished mostly higher on Friday after President Donald Trump announced measures against China in response to new security legislation that were less threatening to the U.S. economy than investors had feared.

The Dow ended the session slightly lower, but all three indexes rose for the week and registered a second straight month of gains. The S&P 500 added 17.8% for April and May, its biggest two-month percentage gain since 2009.

The S&P 500 initially extended losses after Trump said he was directing his administration to begin the process of eliminating special treatment for Hong Kong in response to China’s plans to impose new security legislation in the semi-autonomous territory.

But Trump made no mention of any action that could undermine the Phase One trade deal that Washington and Beijing struck early this year, a concern that had cast a cloud over the market throughout the week.

“He began speaking in a very tough tone,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina. “The market was worried he was going to announce something substantial, something detrimental to the U.S. economy. Then, as he spoke, it became clear the actions being taken were not going to be as dramatic as originally feared.”

Trump also said the United States is terminating its relationship with the World Health Organization, something he had threatened to do earlier this month.

S&P 500 technology shares .SPLRCT gave the index its biggest boost, while financials .SPSY were the biggest drag.

The latest confrontation between the U.S. and China has fueled concern that worsening tensions between the two world’s largest economies could derail the recent sharp gains in the stock market.

Expectations of a quick economic recovery from the coronavirus pandemic have driven the S&P 500 .SPX up more than 30% from its March lows.

The Dow Jones Industrial Average .DJI fell 17.53 points, or 0.07%, to 25,383.11, the S&P 500 .SPX gained 14.58 points, or 0.48%, to 3,044.31, and the Nasdaq Composite .IXIC added 120.88 points, or 1.29%, to 9,489.87.

For the month, the Dow added 3.9%, the S&P 500 gained 4.5%, and the Nasdaq rose 6.8%. For the week, the Dow and S&P 500 each rose more than 3%, and the Nasdaq gained 1.8%.

New York Governor Andrew Cuomo said Friday that New York City is “on track” to enter phase one of reopening on June 8, and he said five upstate regions will now transition to phase two.

Federal Reserve Chair Jerome Powell, speaking in a webcast organized by Princeton University Friday, reiterated the U.S. central bank’s promise to use its tools to shore up the economy amid the coronavirus pandemic.

Twitter (TWTR.N) was down 2% and Facebook Inc (FB.O) shares slipped 0.2%, a day after Trump signed an order threatening social media firms with new regulations over free speech.

Upscale department store chain Nordstrom Inc (JWN.N) slumped 11% after it reported a near 40% fall in quarterly sales due to pandemic-led store closures.

Salesforce.com Inc (CRM.N) slipped 3.5% as the cloud-based business software maker cut its annual revenue and profit forecasts.

Traders wearing masks work, on the first day of in person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 26, 2020. REUTERS/Brendan McDermid

Declining issues outnumbered advancing ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored advancers.

The S&P 500 posted 17 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and 14 new lows.

Volume on U.S. exchanges was 13.62 billion shares, compared to the 11.3 billion average for the full session over the last 20 trading days.

Reporting by Caroline Valetkevitch in New York; additional reporting by Sinead Carew; Editing by Leslie Adler and Tom Brown



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