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Dow Keeps Winning Streak Alive on Late Buying Amid Reopening Optimism

Published 06/04/2020, 03:56 PM
Updated 06/04/2020, 04:06 PM
© Reuters.

© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow notched its fourth-straight day of gains Thursday after cutting losses into the close as data showing the labor market is taking longer to bounce back from the pandemic impact did little to cool reopening optimism.

The Dow Jones Industrial Average rose 0.05%, or 12 points, the S&P 500 fell 0.34%, while the Nasdaq Composite slipped 0.69%.

The number of Americans filing for unemployment benefits continues to decline, but a deeper look into the data suggests that hopes the jobs market had bottomed may have been somewhat optimistic.

Initial jobless claims fell to 1.877 million for the week ended May 29, from 2.1 million the prior week, but missed forecasts of 1.8 million, Continuing jobless claims, however, unexpectedly rose to 21.5 million from 20.8 million the prior week, the Labor Department said Thursday,   

Many have been expecting the job situation to "stabilize and snapback in June, but the sticky high level of initial claims, elevated continuing claims, and the rise in claims for the Pandemic Assistance Program program suggest that even June might be too early for the expected turnaround," Jefferies (NYSE:JEF) said in a note.

Sectors sensitive to the economic recovery, such as financials and industrials, remained well supported, sidestepping the broader market decline.

The optimism over the progress on reopening the economy has been underscored in the bond market, which for weeks had been signaling that the surge in appetite for risk had been overdone.

The yield on the United States 10-Year rose above 0.80% to a more-than-two-month high, helping banks catch a bid. Citigroup (NYSE:C), Bank of America (NYSE:BAC), and Wells Fargo (NYSE:WFC) continued to climb, with latter up more than 4%.

Sentiment on the aviation sector improved, meanwhile, after American Airlines (NASDAQ:AAL) said it plans to fly 55% of its domestic schedule in July, up from May when the airline flew just 20% of its capacity from a year ago, sending its shares up 44%.

But technology lagged the rally, with investors seemingly wary of frothy valuations on display following the sector's surge since the lows seen in March.

Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Netflix (NASDAQ:NFLX) and Google-parent Alphabet (NASDAQ:GOOGL) traded below the flatline.

EBay (NASDAQ:EBAY), meanwhile, was up 6.3% after lifting its guidance for the second quarter.

Latest comments

After a 'V'-shaped recovery, it's going to be an 'M' shaped Meltdown!
All of this sounds very bullish must buy stonks
Sigh....its simply the fed colluding with the rich to pump up the stocks.....All so they can raise the price to then sell them for profit to prepare for the upcoming crisis. When, you ask ? When the retail investors have given up on opposing the feds and take the long position and go full risk mode. Maybe that will be it. After all, what is a catastrophe without casualties, right ?
Any thoughts on what will happen on "Re-Closing"?????
Complete collapse of the dollar and country. But that will probably happen either way
Daily COVID-19 cases are increasing in California and Texas; two of the biggest and richest states in the US. What's it gonna be?
Hedgehog day. Another market pump, of course everybody blaming the Fed, people in the sidelines upset cannot get in or short and headlines correlated with the window dressing. Really is SOO boring. Make money and stop crying, please. We know, for sure is the Fed. And?
Democrat means freedom and people first. As people in democrat states are enjoying real freedom, they select to stand up to promote freedom and fairness for all american. To make America great again, American people have to be great first. History has proved that any government which does not give its own people freedom and fairness is determined to fail.
Stop this nonsense misleading headlines
the riots in all the democrat-run cities proves that republicans were right when they said that democrats were just using COVID-1984 to try and disrupt the economy and lockdowns were all nonsense. same people calling you evil for wanting to re-open businesses have no issue allowing their democrat voter base to burn down and loot their cities in groups of thousands. they have given up on any chances of biden winning the election and are starting a race war like they do every time around elections since the pandemic didnt work out in their favor in terms of the polls.
What is the optimism now. Covid-19 cured? Only 70% of US cities are rioting and looting? Or the unemployment rate stabilized at 60%? or the GDP is only negative 40%? The good news just keeps rolling in?
it's priced in
they are living in an imaginary future with hopes that they found cure for virus, economy V shape recovered, Trump was elected again and no protests. everything is fine just like dream. but when they wake up the world hasn't changed and then they will realise they are in bad position and then we might see another selloff.
lol. and by that time FED dady will not pump money
This will not end well. It’s like falling of a cliff and commenting on the nice warm air on your way down.
Do u have any other words than optimism?
Hope...
 upbeat, shrugged off, looked past....
like last year from February 2019 till January 2020 was hope about trade deal.
The FED intervention concludes to an manipulated market worse than those in Bejing or Moscow. It's a great pity ...
Unbelievable!
When do you think the economy as we saw it in 12/2019 will be back (gdp speaking)?
next quarter? trump is learning from china how to the scew the numbers...only way the market will act like a true market is to rid ourselves of trump and his cronies
, Be careful what you ask for, because the Biden and his cronies and their "green new deal"  will decimate America. Better the devil we know.......I mean Trump.
At least 2-3 YEARS from now!
adrian, 100% correct. report the truth not ridiculous scenarios like "reopening optimism", "covid optimism"....
This website's editorial leaders ignoring the BIG losses in NQ and SP500, to laud a tiny 0.05% green closing for heDow -- yes, they obviously GOT CAUGHT long as the markets reversed, and now are trying to cow and goad the mainstream 9-to-5 retail investors who "only read the headline" to think this was a wonderful bullish day, so as to be able to sell their shares in the next minor upswing, before the "mainstream retail guy" can sell his.  These are DELOOOSIONAL headlines meant to try to MAKE the markets go 1 way instead of REPORTING the full picture of what the markets ARE ALREADY doing.
How about not with the reopening optimism ***** Just say what it is: Fed printing and unprecedented stimulus continue to spike the market, keeping red days to a minimum.
DOW keeps winning streak bc the FED pumped 120 points in less than 15 mins 😂😂😂😂😂😂
Its continuing to spike after hours with no markets open. smh
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