Wall Street Gets Bigger As US States Prepare to Reopen

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(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.

The Wall Street fear indicator slipped for the fourth day to its lowest level in over seven weeks.

Colorado, Mississippi, Minnesota, Montana, and Tennessee were to join several other states in the reopening of companies this week, despite disapproval of health experts, 16% of the American workforce having asked for allowances unemployment.

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.

“There will certainly be a tsunami of negative news that will crash into markets and investors. It’s a consensus. We have that assumption established, “said Art Hogan, chief market strategist at National Securities in New York.

“What we don’t know is what the world looks like on the other side, and how much of the potential economic damage will be mitigated by the historic political response. “

With the Bank of Japan rolling out more stimulus on Monday, the focus will be this week on the Federal Reserve meeting which ends Wednesday, although expectations are low for further easing from the US central bank.

At 11:33 a.m.ET, the Dow Jones Industrial Average .DJI rose 293.23 points, or 1.23%, to 24,068.50, the S&P 500 .SPX rose 36.83 points, or 1, 30% to 2,873.57 and the Nasdaq Composite .IXIC rose 111.47. points, or 1.29%, to 8,745.99.

Tesla Inc (TSLA.O) jumped 9.5% and was the biggest boost to Nasdaq after a report that the automaker is recalling workers from its California assembly plant next week.

About 173 S&P 500 companies are expected to release quarterly results this week, including Apple (AAPL.O), Amazon.com (AMZN.O), Microsoft (MSFT.O) and Boeing (TO PROHIBIT).

Overall, analysts expect the S&P 500 companies’ first quarter profits to drop nearly 15%, as profits in the energy sector fell 68%.

“The benefits are in some ways like the coming economic data – heinous at the moment, and 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, especially in the United States, or what the loosening will look like, and which sectors will be involved. “

Caterpillar Inc (CAT.N) fell 1% as Morgan Stanley demoted the heavy equipment maker to “underweight”.

The growing problems outnumbered the declines by a ratio of 3.32 to 1 on the NYSE and a ratio of 4.24 to 1 on the Nasdaq.

The S&P index recorded four new highs over 52 weeks and no new lows, while the Nasdaq recorded 46 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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