Wall Street Gets Bigger As US States Prepare to Reopen


(Reuters) – US stock markets jumped more than 1% on Monday as more states were preparing to ease home orders and investors were preparing for one of the busiest weeks of quarterly reports on the results, including tech titans from Apple and Microsoft.

The New York Stock Exchange (NYSE) is seen in the lower Manhattan financial district during the epidemic of coronavirus disease (COVID-19) in New York, United States, on April 26, 2020. REUTERS / Jeenah Moon

The 10-year US Treasury benchmark US10YT = RR increased for the second consecutive session, lifting the .SPSY rate-sensitive financial index by 3%. .SPLRCT technology stocks were also the main stimulants of the three main indices.

Wall Street’s fear gauge has slipped for the fourth trading day to its lowest level in more than seven weeks, Colorado, Mississippi and Tennessee are expected to join other states in the reopening of businesses this week, despite the disapproval of health experts.

While thousands of billions of dollars in stimulus have helped the S&P 500 .SPX recover nearly 30% from March lows, analysts say mounting economic damage could cap further gains unless progress is made. are performed on treatments for the disease.

Economists expect US GDP in the first quarter to contract 4%, as closures have crushed production, supply chains and consumer spending, causing millions of layoffs.

“Everyone is excited that we are reopening, and there is optimism about it, but I would be a little worried because what we really need is to get back to normal for the markets to follow optimism, “said Julia Carlson, chief executive officer of Financial Freedom. Wealth management group in Oregon.

After the Bank of Japan rolled out more stimulus on Monday, the focus will be this week on the Federal Reserve meeting which ends Wednesday.

At 12.54 pm ET the Dow Jones Industrial Average .DJI was up 280.36 points, or 1.18%, to 24,055.63, the S&P 500 .SPX was up 40.36 points, or 1.42 %, at 2,877.10, and the Nasdaq Composite .IXIC was up 102.21 points, or 1.18%, at 8,736.73.

Tesla Inc (TSLA.O) jumped 7.8% and was the biggest boost to Nasdaq after a report that the automaker will recall some workers from its California assembly plant next week.

Humana Inc (HUM.N), Anthem Inc (ANTM.N) and Centene Corp (CNC.N) are trading flat up to 1% after the Supreme Court ruled in favor of health insurers seeking $ 12 billion as part of a program set up by the Obamacare law to encourage them to offer a medical coverage for uninsured Americans.

After a mix of first-quarter profits from major U.S. banks and consumer discretionary firms, traders will turn to comments from Apple (AAPL.O), Amazon.com (AMZN.O), Microsoft (MSFT.O) and Boeing (TO PROHIBIT) on their outlook for the year.

“The benefits are in some ways like the economic data coming into force – heinous at the moment, but something the markets will try to check when it is negative,” said Edward Park, deputy chief investment officer of the London company. Brooks Macdonald.

“What really matters is – are we seeing progress in terms of the growth of new cases, or what will be the easing of the lock, and what sectors will be involved. “

The growing problems outnumbered the declines by 3.47: 1 on the NYSE. The advanced issues outnumbered the declines by 4.43: 1 on the Nasdaq.

The S&P index recorded five new highs over 52 weeks and no new lows, while the Nasdaq recorded 56 new highs and six new lows.

Report by C Nivedita and Medha Singh in Bengaluru; Editing by Anil D’Silva, Sagarika Jaisinghani and Arun Koyyur

Our standards:Principles of the Thomson Reuters Trust.


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