Dow holds 400-point gain after housing data surges in May, even as coronavirus cases top 10 million
June 29, 2020 @ 20:44 +03:00
The Dow Jones Industrial Average was sharply higher Monday, partly on the back of upbeat economic data and a surge in shares of Boeing. However, investors were still parsing weekend data that highlight the persistence of coronavirus in hot spots, including Florida, Texas and California, fueling concerns about the economic outlook. Financial markets in the U.S. will be closed on Friday in observance of the Fourth of July holiday.
The Dow Jones Industrial Average gains 442 points, or 1.8%, at about 25,460; those for the S&P 500 index advanced 35 points, or 1.2%, at around 3,044, as the consumer discretionary and materials sectors climbed. Meanwhile, the technology-laden Nasdaq Composite Index picked up nearly 92 points, or 1%, to 9,850. On Friday, the Dow put the finishing touches on a weekly decline of 3.3%, falling 700-plus points on the day, while the S&P 500 notched a 2.9% weekly decline and the Nasdaq fell 1.9% for the week.
Major U.S. stock indexes were higher at midday Monday as economic data continued to surprise to the upside, even as several states battling a surge in COVID-19 infections have been forced to reimpose limits on business activities and social gatherings.
Markets scored an early boost after a report showed that pending home sales in May spiked 44.3%, compared with April, according to the National Association of Realtors. That beat expectations of a 15% rise. Sales were still 5.1% lower compared against the same time last year.
For owners who plan to use their residential properties as income, however, rents have been falling in many parts of the nation as millions remain out of work during the pandemic.
The U.S. recorded more than 42,000 new cases Saturday, according to data compiled by Johns Hopkins University, marking a second straight daily total over 40,000, even if it represented a decline from Friday’s record 45,255 tally. Florida, Nevada, George and South Carolina reported a surge in new cases on Saturday, Politico reported.
Meanwhile, in China, industrial profits in May were up 6% from a year earlier, representing the first increase in 2020, official statistics released over the weekend showed. Investors are expecting some turmoil due the holiday-shortened week and end-of-quarter activity among investment managers, including pensions and mutual funds. The 10-year Treasury note yield was off 1 basis point to 0.63%. Bond prices move inversely to yields. The greenback was up 0.1% against a basket of its major rivals, based on trading in the ICE U.S. Dollar Index.
In global equities, the Stoxx Europe 600 index was trading 0.4% higher and London’s FTSE 100 were rallying 1.1%. In Asian markets, the Japanese Nikkei lost 2.3%, Hong Kong’s Hang Seng lost 1%, while South Korea’s Kospi declined 1.9%. China’s CSI 300 retreated 0.7%, while the Shanghai Composite Index declined 0.6%.
Dow holds 400-point gain after housing data surges in May, even as coronavirus cases top 10 million, CNBC, Jun 29