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Stocks - Wall Street Opens Higher as Kudlow Rules out Fresh Closures; Dow up 125

Published 07/08/2020, 09:45 AM
Updated 07/08/2020, 09:48 AM
© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets bounced back from Tuesday’s losses to open higher on Wednesday, as White House economic advisor Larry Kudlow repeated that the economy will not be shut down again to throttle the recent surge in coronavirus cases.

Kudlow also told CNBC that "Every piece of data shows a V-shaped recovery" in the economy, contradicting Atlanta Fed President Raphael Bostic, who had warned in more than one appearance earlier in the week that the recovery was in danger of stalling due to the surge in infections.

Kudlow’s commentary on the state of the virus hasn't been foolproof - he famously said that the U.S. had contained it "pretty close to airtight" back in March - but his comments were partially vindicated by another 2.2% weekly rise in mortgage applications, further fleshing out the picture of relative health from the housing market.

By 9:45 AM ET (1345 GMT), the Dow Jones Industrial Average was up 123 points, or 0.5%, at 26,014 points. The S&P 500 was up 0.7% and the Nasdaq Composite was up 0.9%. All three indices had registered heavy losses on Tuesday, snapping a five-day winning streak.

Among individual stocks, insurance group Allstate's (NYSE:ALL) stock fell 2.6% to a new three-month low after it agreed to pay $4 billion in cash for smaller rival National General  (NASDAQ:NGHC), a premium of over 60% to Tuesday's closing price that made National General stock the biggest gainer in early trading. 

AMC Entertainment (NYSE:AMC) also rose 4.3% after The Wall Street Journal reported that it is in talks with creditors to avoid having to seek chapter 11 bankruptcy protection. The movie theater operator's performance was kept in check by the WSJ's observation that the debt restructuring being proposed by its biggest creditor is opposed by a group of other bondholders.

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At the other end of the spectrum, Levi Strauss (NYSE:LEVI) stock fell 7.3% after it reported that sales fell 62% in the three months through June, forcing it to cut some 15% of staff.

Alternative energy vehicle stocks were again in the spotlight, with hydrogen-powered truck venture Nikola (NASDAQ:NKLA) stock rising 24% and Chinese battery-powered car maker Nio (NYSE:NIO) rising another 14%. to an all-time high after its better-than-expected sales figures for the second quarter. 

Elsewhere, Newmont Goldcorp (NYSE:NEM) stock rose 1.9% to its highest in seven weeks as the spot price of gold rose above $1,800 for the first time since 2001. By 10:15 AM ET (1415 GMT), gold was up 1.0% at $1,813.41 a troy ounce.

  

Latest comments

If you worked at a meat packing plant, would you be willing to sacrifice your life for Larry Kudlow?
Kudlow moves the market? LOL
remember Investing.com feels as if they have to put an explanation to every up and down at the beginning of the day for the market - the news very very rarely has an correlation with the market, but it's important to them to create a narrative.
Cocaine Larry selling Bear Sterns again.
Why was my respectful comment censored? ....because it's an opinion the moderator doesn't like? So much for free speech, SMH!
...hmmm, this gets posted instantly, but the other comment, which was completely respectful is still "under moderation"?!
You still believe in free speech?
Kudlow is a $100,000 per week cocaine addict that dresses like a dope dealing flesh peddler...
where does that come from?
Keep being extra cautious, wear your mask, but realize we're in an election year and those still reporting constantly increasing virus numbers are likely to be Democrats who want Trump out of office. The smart money seems to think so, which is a big reason markets keep rising.
We have post-modern markets. Don’t like facts? Ignore them; and do so knowing that central banks are using their enormous powers to over-rule them.
it reminds me of a Beatles song - "Back in the USSR"
America the beautiful is unstoppable, will beat all enemies foreign or domestic, including those that introduced the bs bug to divert attention from the crimes committed by the democrats, and will beat this manufactured bug as well.
you're as deluded as Narcisist Trump
oh, and please define the word, "America" - I bet if you asked 50 people to define the term, you'd get 50 very different answers - the working and middle classes and unemployed and sick who live in the Country of USA have all been very hard done by over the past thirty plus years - account for inflation, and they haven't improved their wealth at all - the nation state and most of the individual states are also far less wealthy and in more debt. What you can say for sure, is that those that own a vast amount of assets, have done incredibly well over the past thirty years and their wealthy has increased vastly - is it the latter you are referring to, with your term, "America"???
There are more things in heaven and earth, Horatio,Than are dreamt of in your philosophy
who cares. let's go green
The lady doth protest too much, methinks.
Does this guy not know that he has no control over shutdowns and if local governments want to shut do they cam do so?
Thank You.
Time to stop the ridiculousness. ********it up and live life. WW2 generation never would have shut down the globe over the flu. Death rate in my county in NY 2/77000 =.0026% death rate. why did 76998 put lives on hold for 3 months when more people died of everything else but covid. Even if i were 1 of the 2 who died i would nit want 99.998% to suffer.Protect the weak as best as possible and move on. Lives, business, weddings, graduations, marriages ruined for what people afraid to get the flu. And the exaggerated numbers people classified as covid death for hospitals to collect more money from government.#noturningbackregardless
#noturningbackregardless
Tell that to my COVID19 dead sister....
Frank, you haven't got a clue - the only reason the death rate isn't a lot higher is that the very overpriced healthcare sector is saving tens of thousands of lives in overrun hospitals - they are turning people away or having to choose who they save. Secondly many people who contracted the virus who were asymptomatic or had only mild symptoms, are now discovering three months on that they are suffering from - incredible fatigue, dizzyness; stroke and other neurological conditions; some people are suffering severe hallucinations and altered behaviour - none of these people can go back to work - they may not have died, but now they're going to need long term care - and aren't going back any time soon to their previous lives as doctors, lawyers, scientists, teachers, etc etc. We're only just still discovering just how crazy this virus is and its long term side effects - so if you reckon it's OK that most of the USA contracts the virus - think again.
Kudlow? A balding american politician comments on a potential decision by his french colleagues, that he has nothing common with, apart from parasiting on tax-payers money. And the world celebrates!
He has to clarify, that itself shows things are serious...
Survival of the fittest
exactly
What a non-sence. Kudlow nor Trump does not decide about lockdowns. Anyway they are already happening. So it is fake news.
yeah, but how else can they keep convincing their S for brains supporters that all is well, when clearly it is anything but.
out of sensesevol reports oil stock builds!
they are trying to ********us
Trump wins again. He’s beating the *****out of your financial future. Money printer goes brrrrrr! Its easy to buy the market up when you dont have to work for the money. If anyone knows how to fake a great economy, its Trump. #BuyTheDip
It's how all the great Empires started collapsing - history repeating itself as it always does - this is textbook stuff from the terminal decline of the Roman Empire onwards - not enough income, far too much consumption for consumption's sake, expensive wars that achieve nothing but improve the stock prices of arms manufacturers and provide dividends to the shareholders and directors (who usually happen to also be in key government positions - Cheney / Rumsfeld) - and then vast amounts of money printing so the global reserve currency becomes a worthless joke - time after time - this is how it plays out - historians must just be laughing their heads off at the similarities, but I guess most Trump supporters are not highly educated and have never studied and rise and fall of the world's great empires.
Lol, virus will remain in the states forever. How the tables have turned. Everyone else is closing borders with us now :D
and what medics are researchers are now just starting to discover is that even with mild sypmom or asymptomatic infected people, quite a few - numbers are hard to come by at present - go on, sometimes months later, to develop all sorts of neurological problems including strokes, hallucinations etc - quite a few young and fit people are also now dying - so bad news for all those Jocks in the states not bothering about catching it or not (even though they'd be keeping the thing going and passing it on to others) - there's a good chance they may now be even more brain dead than they were already in a year's time.
OK, so for those of you have given that a thumbs down - if you are able to read, which I very much doubt, to any great degree, take a look at this .... https://medicalxpress.com/news/2020-07-delirium-rare-brain-inflammation-linked.html
May the markets move to 50,000 as daily Covid cases skyrocket to 100,000 Let' see who wins - Economy or Pandemic
economy.
no one asked you ben chod.
 I believe you are mistaking the world economy for the word market - one, you can goose with loads of newly created money - the other, you can't
Trump will ****america
his neice - a clinical psycholgist has described many of his disfunctional traits and basically, he is Agent Orange - a biohazard to himself, to the USA and to the World. He needs to be removed from office pronto - and to think Putin pretty much managed to put him there, thanks to very stupid supporters who couldn't see through his cheating and lies - and amazingly, still can't - it shows you just how pychologically disfunctional much of the electorate are - in all countries!
a man who is only in it for himself - the great orange Narcisist-in-Chief
60,000 deaths a day... 3,000 deaths... Not a year... a day!
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