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Dow Notches Third-Straight Win as Bets on Faster Economic Recovery Continue

Published 06/03/2020, 03:40 PM
Updated 06/03/2020, 04:03 PM
© Reuters.

By Yasin Ebrahim 

Investing.com – The Dow climbed for the third-straight session as hopes of a faster economic recovery were given a boost on Wednesday amid signs the Covid-19 pandemic's grip on the economy has passed.

The Dow Jones Industrial Average rose 2.05%, or 527 points, the S&P 500 gained 1.36%, while the Nasdaq Composite added 0.78%.

With just days to go until Friday's crucial nonfarm payrolls report, ADP (NASDAQ:ADP) said that private payrolls fell by 2.76 million jobs in May, confounding economists' expectations for a drop of 9 million.

That marked a significant improvement from the 19.5 million job cuts seen in April, raising hopes the labor market losses have bottomed.

The services sector, which accounts for about two-thirds of overall economic growth, is also showing signs of life, with activity rising from the lowest level in 11 years in April.

Institute for Supply Management data for May showed a reading of 45.4, above forecasts for a reading of 44.

The duo of upbeat economic reports stoked investor hopes of a quicker economic rebound, underpinning cyclical sectors like financials and industrials.  

Financials jumped 4.4%, with banks leading the charge. JPMorgan (NYSE:NYSE:JPM) was up 5.4%, Bank of America (NYSE:NYSE:BAC) up 4.5% and Citigroup (NYSE:NYSE:C) up 4.9%.

In industrials, Boeing (NYSE:BA) rallied 13% after reaching a compensation package and a new delivery deal with travel company TUI Group over the grounding of its 737 Max planes.

On the earnings front, Zoom Video Communications (NASDAQ:ZM) jumped 6% after reporting first-quarter results that markedly beat expectations on the bottom and top lines as the pandemic spurred demand for its videoconferencing software.

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Canada Goose (NYSE:GOOS) rose 18% after reporting a better-than-expected fiscal fourth-quarter profit. The outerwear retailer also said it would increase focus on direct-to-consumer sales in the early stages of the reopening phase.

Elsewhere, Warner Music (NASDAQ:WMG) made a bright start to life as a publicly-traded company, rallying 21%. The music label company had priced its offering of 77 million shares at $25 per share.

Latest comments

What farce face of a theif selling at premimum to retail
fed try help person and hurt 150M Americans.
Recovery? trump estimated 100,000 deaths.. Its already 109,000+ and counting.. Vaccine is a year away at least.. Those claiming earlier are lying.. just cannot happen according to renowned scientists. The fed will keep pumping until it realizes its foolish deed in another 2-3 months. Then it will stop pumping.. But it would have been too late.. No money left for real reforms.. Then it will start extorting taxpayers.. Taxpayers will protest strongly.. Unrest goes on.. Thanks to the fed's "intelligent" moves!
I'm assuming... DOW 50,000 by Christmas?
Nah! More like 31,000
More like 80,000 before November with all the optimism. Not sure after election.
I actually calculated with a cumulative calulator.. @2%+/day, it turns out to be around 140,000 by end of year!!Long live Powell the printer!
V shape recovery achieved by the fed; bravo bravo bravo. Mrs printer Powell no need for the pumping anymore.
Haven't the fed overdone the pumping? Don't they see it's crazy.
Of course did it exaggerate it! However, the question raises whether FED will let the improvement go again. Meanwhile, I start doubting this. Maybe it will let it go down to 2'800, but further below - I doubt. Even the real economy doesn't give more then 1'400 to 2'000 in S&P, it costed so much funds to pay it up to 3'100, so they will either not let it go down at all or just max. 10%. Unreal and unfair game, but to be honest, pretty realistic.
It'll crash spectacularly but what's another 20 million out of job? It's already so bad that worse doesn't matter.
Fed will realize only after it finds out all it bought was junk!!
They will majorily over estimate the negativity of Q2 GDP in July and when it come in above the estimate they will say everything is improving.
That number will be rigged by fed no matter ehat
wow, the pandemic is over? will there be some type of announcement for everyone that is not aware? or is it just wall street that was informed?
Don't write it off yet.. wait for the intensity of the second wave to be sure..
market is fake like CNN.
Once good news should start then fed won't pump anymore, only then markets will undergo a correction or more in order to consolidate. But these riots are kind of worrisome.
Will this fed propped up thing go down now for 17% correction????
Make that 17*4! For a reasonable correction..
Stock market is doing great! While the econony is worst since the great depression! Ill just burn my money to cook my rat meat in the future.
You have to start matching the picture with the headline. Try the guy with praying hands, or the guy blowing a bubble gum bubble. This guys is having an anxiety attack.
lol
the dump fed give away money to Wallstreet will not help economy. take years to recover and everyone will pay more taxes.
Right! there will another much larger wave of protests on roads.. against unreasonable taxes that are bound to come
4 more years!
Indeed, America will never be great again.
exactly US will be great again, 4 years!
it never mentions any covid stats.
It misses many things, like China cold war rhetorics, US considering banning Chinese companies to operate flights to the US, protests etc...Yasim Ebrahim is a poor copy-writer.
It's all Fed's pump
Boat missers angry again. lol
haha dont be public enemy. juz keep to yourself.
Come on man! It’s V shape recovery!
Went up on Vaccine Hope's, never happenedwent up on China deal, never happenedNow on recovery which won't happen like they sayEach time the jaw boning made the market go up, but never did it go down when it didn't happen. The Federal Reserve is buying up everything of used to be a Capitalistic economy.
I couldn't have said it better. This Market is in for a real wake-up call when Q2 results come in.
No awakening, only Fed's pump
nothing will happen
Stocks up again on Central Bank policies.
The economy is as strung as November 2019 🙈
And for gambling I visit the casino. Not the stock market
Don't bet against the Federal Reserve.
 not betting at all. I will sit on my hands till market corrects. This is totally nots. I may mis the train. But there always will be news chances
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