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Wall Street rises on strong services sector, hopes of China recovery

Published 07/06/2020, 06:53 AM
Updated 07/06/2020, 03:10 PM
© Reuters. New York Stock Exchange opens during COVID-19

By Caroline Valetkevitch

(Reuters) - Wall Street's major indexes were up more than 1% on Monday as data showing unexpected growth in the U.S. services sector last month and a revival in China's economy boosted optimism, helping investors look past a surge in new coronavirus cases at home.

The ISM's non-manufacturing activity index jumped to 57.1 in June, almost returning to pre-pandemic levels, but a recent surge in COVID-19 cases in the United States has threatened the emerging recovery.

"These numbers are important, and it helps to explain the increase in consumer confidence," said Quincy Krosby, chief market strategist at Prudential Financial (NYSE:PRU) in Newark, New Jersey.

Investors also bet on an improving Chinese economy and its impact on the global growth as the yuan led commodity currencies higher against the dollar. Earlier, Chinese stocks jumped more than 5%.

A slew of upbeat U.S. data, including a record rise in monthly payrolls, has powered the Nasdaq to all-time highs and has helped the S&P 500 and the Dow shed much of their losses. The S&P 500 is roughly 6% below its February peak, while the Dow is about 11% below its record high from that month.

The S&P 500 rose for the fifth day, undeterred by a record surge in new COVID-19 cases in 16 states in the United States this month that could further hamper reopening plans and poses a big risk to the economic recovery.

The Dow Jones Industrial Average rose 368 points, or 1.42%, to 26,195.36, the S&P 500 gained 41.93 points, or 1.34%, to 3,171.94 and the Nasdaq Composite added 197.03 points, or 1.93%, to 10,404.66.

Over the Independence Day weekend, several states reported a record increase in new infections, with Florida surpassing the highest daily tally reported by any European country during the peak of the outbreak there.

Online retail giant Amazon.com (NASDAQ:AMZN) crossed $3,000 for the first time and was the top support to the benchmark index and the Nasdaq.

Tesla (NASDAQ:TSLA) Inc were up about 10%, rising for the fifth session as JPMorgan (NYSE:JPM) bumped up its price target for the electric carmaker's stock following better-than-expected quarterly deliveries.

Uber Technologies (NYSE:UBER) Inc climbed 5.1% after the ride-sharing company agreed to buy food-delivery app Postmates Inc in a $2.65-billion all-stock deal.

Advancing issues outnumbered declining ones on the NYSE by a 2.21-to-1 ratio; on Nasdaq, a 1.74-to-1 ratio favored advancers.

The S&P 500 posted 38 new 52-week highs and no new lows; the Nasdaq Composite recorded 145 new highs and 14 new lows.

© Reuters. New York Stock Exchange opens during COVID-19

Latest comments

Today was an incredible run. Took Alot of profit today. Still half in cash but buying some good dips. Did not buy today. Today was a bull profit taking dream.
I love how we rise on hopes of China. we could give a rats ********about Communist China. We rise because we are America.
I love how the authors used an image of two robbers on the trading floor, because that is what this is: highway robbery. What the FED and the government is doing is it's stealing from all savers that hold dollars as well as from all future generations by increasing debt and giving this money to overbloated zombie industries like cruise lines that not only might never again turn a profit but that have also actively worked to not pay taxes by registering in tax havens. The usage of the image attached to this article is very accurate indeed.
It sure does look like a mid night robbery indeed! No one on the trading floor except these two bandits.. the fed n gov
when they got all people in they start to dump it in the basement
FED and big players keep pushing this nonsense market up. No momentum, no volume, no reason. They are trying to bring more people in, but fundamentals still matter (yes, It matters) and a lot of people know that... A lot of lies in this market, unemployment rates, rating agencies hiding reality (or being paid for it),  false earnings reports, corruption, ... Let's see next week when the earnings season begins because this week obviously players will push the market as higher as they can.
Fake news. Fake economy. Yeah, that's a buy. lol
Red Giant thank you !!
There is no crash coming.. The Fed clearly knows that if they stop printing, markets will go down.. so the Fed magic will continue until there is a vaccine and afterwards, markets will be normalized because 70% of Amercia is back to work. All you folks sitting out will be forced back in at an expensive price.
Everyone will be so used to FED handouts that there will be no stabilization unless that continues. The dollar is also being devalued more and more with Keynesian monetary policies...so don't know how that will be effective in monetizing debt.   Markets need to find their natural level, let real market forces determine that, not money printing...the pain will be so much worst when this charade collapses
@John - Goodluck waiting on the crashA
You have two bankruptcies in the last 9 years and a history of lying and scamming people, so your word is...well...worthless.
Reuters should be labeled China propaganda news!!!!!!
From now on China will lead the world index
Everyone knows it's fake. So who's buying? the world over! God save the innocent from the unprecedented crash that is on its way.
So if you believe in science, then pls be aware that even Einstein believed in pantheistic God.. which is what i made a reference to.
nothing just magically comes from nothing, so where did the singularity that caused the big bang come from? There must be a supernatural Creator, or nothing at all would exist.
i love how you post and immediatly give yourself a thumbs up. Hey at least that gives you one!
All fake data.. Con artists in the stockmarket
one more fake data...o god help us..
The data was very good today.
Hoobastonks
The Hang Seng went to the moon and to Outer space today going up almost 1,000 points.
It's time for a bubble dance, 1 step more forward for your bullish partner with a sword of bear under sleeve...
The prAHpAHgAHndAH on this site is ridiculous.  CHAI naaa is hopeless.
Certainly no hopes of an Automobile led recovery, but we won't be hearing anything about that here on the stock pumping channel!
You commies are all going to drown, burn and rot. The nations of the world have united.  Every One Of You Will Burn In Nuclear Fire And No One Will Shed A Tear.
commie China the big bully. Taking advantage of the little guy spreading fear and hate. Using slave labor and polluting the environment beyond comprehension.
not sure of relationship, Chinese market hasn't been participating all the pumps like US equity for years. if Chinese market is a leading indicator, sp500 would no more than 2000. lmao. reality is both markets are just moving on its own, no more cleaner or dirtier than each other.
Perhaps Mr Market is moving in expectation their sugar daddy Mr Powell will print an extra trillion. Can't be virus/re-opening hopes and those increased jobs will likely, and lamentably, dissipate again. But I guess just keep buying stonks.
 well as i have been saying for a while. Market participants like myself are a form of free market, we long and short based on our own intuition of how economy may progress. treasury and fed are permabulls, so i am not surprised about QE unlimited.
ISM reported 57.1% , expectation 51%
Pmi and ism came out and they beat expectation.
The media sticks news to any many move. They make up news. They dont have a clue most of the time.
Our economy is so strong, our stock market moves up on hopes that other economies recover slightly 🤷‍♂️
 no, China will rule the world because of US corporate greed...many presidents should have stepped up to stop China but didn't...at least Trump took action. I'm not even a Trump supporter.
 China willl rule the world like the nazis will rule the world. In their brief wet dreams.
Are you that strong?
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