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Wall Street closes higher as recovery signs soothe protest, pandemic worries

Published 06/01/2020, 08:36 AM
Updated 06/01/2020, 04:35 PM
© Reuters. The spread of the coronavirus disease (COVID-19) in New York

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

By Stephen Culp (NYSE:CULP)

NEW YORK (Reuters) - U.S. stocks posted gains on Monday as signs of U.S. economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising U.S.-China tensions.

All three major stock indexes began the month with gains of less than 1% on the heels of a strong May rally.

Market leaders Facebook Inc (O:FB), Apple Inc (O:AAPL) and Amazon.com (O:AMZN) provided the biggest lift to the S&P 500 and the Nasdaq, while Boeing Co (N:BA) gave the Dow its biggest boost.

"Certainly the pace of the stock market recovery can't continue at the pace it has been," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. "I'm stunned at how well the market's been doing."

The White House called for "law and order" after six nights of widespread, violent demonstrations triggered by the death of George Floyd at the hands of police, even as the country reels from the economic effects of pandemic-related lockdowns.

"Most investors are saying (the protests) aren't going to destroy the economy," Nolte added. "It's a roadblock but it's not as big as a pandemic."

The unrest has prompted retailers such as Target Corp (N:TGT) and Walmart Inc (N:WMT) to shutter a portion of their stores, while Amazon.com (O:AMZN) has scaled back deliveries.

Further weighing on sentiment, China ordered state-owned firms to halt purchases of U.S. soybeans and pork, in retaliation for President Donald Trump's announcement that he would end special treatment for Hong Kong following China's move to tighten security measures in the territory.

But economic data boosted investor sentiment, with the Institute for Supply Management's (ISM) purchasing managers' index (PMI) showing the contraction of factory activity was slowing.

A fuller picture of the economic damage wrought by pandemic-related lockdowns is expected on Friday, when the Labor Department's jobs report is expected to show unemployment skyrocketing to 19.7%.

The Dow Jones Industrial Average (DJI) rose 91.91 points, or 0.36%, to 25,475.02, the S&P 500 (SPX) gained 11.42 points, or 0.38%, to 3,055.73 and the Nasdaq Composite (IXIC) added 62.18 points, or 0.66%, to 9,552.05.

Of the 11 major sectors in the S&P 500, all but healthcare (SPXHC) ended the session in positive territory.

Pfizer Inc (N:PFE) fell 7.1% after the drugmaker's breast cancer treatment was deemed unlikely to meet the main goal of a late-stage study.

Gilead Sciences Inc (O:GILD) slid 3.4% following mixed results in a late-stage study of its COVID-19 drug candidate, remdesivir.

Meanwhile, rivals firms CTI Biopharma Corp (O:CTIC) and Proteostasis Therapeutics Inc (O:PTI) advanced 16.7% and 8.4%, respectively following reports that their potential COVID-19 treatments showed promise.

Shares in cosmetics company Coty Inc (N:COTY) jumped 20.9% after the appointment of Chairman Peter Harf as its new chief executive officer.

Advancing issues outnumbered declining ones on the NYSE by a 3.26-to-1 ratio; on Nasdaq, a 1.58-to-1 ratio favored advancers.

The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 98 new highs and 10 new lows.

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

Volume on U.S. exchanges was 9.95 billion shares, compared with the 11.30 billion average for the full session over the last 20 trading days.

Latest comments

Fake panademic 0.01
Welcome to the END of the Free Market
I am AMAZED how big earnings are after all that!!!!! What a strong economy....do you believe Fed will raise interest rates next meeting to 2% ?
Free market... Haha... Is one way lane. And still media talks about hope. Don't make me laugh. Thank you "cheer man" Powell for saving the rich.
We might be red or green tomorrow.
Couldn’t agree more, it will be deffinitely red or maybe green but everything else but red or green is out of question
all right, too much diverting noise... operators are returning from lunch in a minute and the only way for the market is up... let's make the market great again
fundamental is no longer exist, technical is draw by BlackRock, market is rigged, how can one trust the market?
I see a lot of anti-American sentiment in this thread, started and incited by their brainwashing authors Reuters
Pwr Strk, you clearly see what you want to see. But I think it's clear to most sane people that Reuters is just a news organization and has no such 'agenda'. They just report news and publish opinion pieces and editorials. They're certainly not in the business of 'inciting anti-American sentiment' or 'brainwashing'. lol
  right, so does CNN, MSNBC, FOX, et al. Sure, they're all only very objective... go put some independence in your brainwashed brain
Fake News. Dow will pass 30000 by eoy
The baloon is growing thin
The stock prices are set by the FED. Free stock.markets are past!
Just Follow trend with technical tools.
how much would markets rise if we declared war with china. I'm beginning to if the fed said it and he had our backs nothing lol
China has already launched a war with US.. how come US is on the top of Covid infections/death with no other country even closer by several multiples..Aldo it knows the US Fed will eventually become a pauper when its is unable yo pump any more..US currency crashes and China becomes the largest economy
  china is yet to pay for the chinese virus and the "war" you say you've' started
This just in from Fox News.....undercover MAGA supporters infiltrated the protester ranks in Dallas, LA, Raleigh, and perhaps in as many as 11 other cities, and were largely responsible for the rioting and looting that was otherwise initially blamed on the protesters. This is a developing story.
  lol, you don fook democrat takin things for granted gringo
This is exactly the same with what happened in 3rd world countries. The thief shouting : Thief !
 ask the don fook gringo for the links... he's just making this up in case you are so  naive
this is not free market so do not invest. scam by BlackRock.
Title should read.."Wall st rises on perpetual Fed pumping despite violence in almost all metropolitan cities across the US, and despite rising US-China tensions, and despite being on top of Covid-19 infections/deaths in the world."
democratic financing of antifas, rioting and looting is running out, so the protests are dissipating and recovery sentiment is greater than ever
“Recovery Sentiment is greater than ever”, Is that what they are saying where lawn maintenance services are considered essential? ;) things aren’t so good out there for the other 98% and they are getting worse not better. A little compassion doesn’t cost a thing.
Conspiracy Theory #1: a deal was cut between big banks and Fed to let Blackrock pump up the markets usung fed money and not to short in Q2.
On technical side a bigger rising wedge is forming plus 200 moving average is blocking the way up. But ofcourse FED will pump it! HAHA throw all your trading books. market manipulation! the economy is healthy! But people keeps getting sick. We don't even control the virus yet, curve is not flattening.
U either missed ou the rally or short or a politician. Sorry if u missed the boat. Learn to trade better instead of blaming others.
Forget it. U r not trader nor investor.
I already play the bounce and some range trade play. I just said that coz the market is crazy going up with many bad news in the economy. This market crash is not a natural recovery but a pump money by FED. FAKE MARKET!
It doesn't look like a dip
yeah.. it's the fed's POP corn.. without any weight..
If one good thing came out of the riots it's that this cv19 scare seems to be over.
Only out of the headlines. It's far from over. Why make these transparent statements on an investment site? You're comment is nonsense and unnecessary.
Over? Dream on! Prepare to see a new spike in infections over the next 1 or 2 weeks as many who were in those protests start to get sick.
Ya know, Reuters, it's illegal to bet on the downside of the market then manipulate the public to cover your bets
FED is destroying the free stock markets fundamentally and for a very long time! Go bye free world ...
This ***only goes up
This ******only goes up
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