· Wall Street ends higher on recovery hopes, Nasdaq hits another record
Wall Street’s three major indexes closed higher on Tuesday as improving economic data and the prospect of more stimulus bolstered hopes of a swift recovery, while a jump in technology shares powered the Nasdaq to another record high.
The Dow Jones Industrial Average rose 131.14 points, or 0.5%, to 26,156.1, the S&P 500 gained 13.43 points, or 0.43%, to 3,131.29 and the Nasdaq Composite added 74.89 points, or 0.74%, to 10,131.37.
While all the indexes pared gains late in the session to close below their peaks for the day, the Nasdaq managed to register its fifth record high close this month. Apple Inc provided the biggest boost followed by Amazon.com and Microsoft.
Data showed that the pace of contraction in the U.S. manufacturing and services sectors slowed in June as businesses reopened after lockdowns that started in mid-March.
Also, new home sales jumped 16.6% in May, blowing past estimates of a 2.9% rise.
Then U.S. Treasury Secretary Steven Mnuchin said that the next stimulus bill will be focused on getting people back to work quickly and that he would consider a further delay of the tax filing deadline.
Earlier in the day White House economic adviser Lawrence Kudlow said tax rebates and direct mail checks are on the table in the next coronavirus relief bill.
· European stocks close higher as economic data shows downturn slowing; Wirecard up 19%
European stocks closed higher on Tuesday as euro zone PMI (purchasing managers’ index) readings showed the economic downturn slowing in June, while investors reacted to a surge of coronavirus cases in the U.S. and elsewhere.
The pan-European Stoxx 600 provisionally ended up 1.3%, with autos climbing over 3% to lead gains as all sectors and major bourses held in positive territory.
The boost to stocks comes after White House trade advisor Peter Navarro clarified that the U.S.-China trade deal is not over, following an interview with Fox News in which he appeared to suggest otherwise, prompting U.S. stock futures to plunge.
· Asia Pacific stocks mostly higher as Fauci warns of surge of coronavirus cases in U.S.
Stocks in Asia Pacific mostly edged higher Wednesday morning as the coronavirus situation stateside continues to be watched, with White House health advisor Dr. Anthony Fauci warning Tuesday that parts of the U.S. are beginning to see a “disturbing surge” of Covid-19 cases.
In Japan, the Nikkei 225 rose 0.25% while the Topix index shed 0.15%. Over in South Korea, the Kospi rose 0.88%. Australia’s S&P/ASX 200 added 0.35%.
Overall, the MSCI Asia-ex Japan index traded 0.19% higher.
In a hearing before the House Energy and Commerce Committee, Fauci said he is “quite concerned” about the rise in coronavirus cases in states that “reflect an increase in community spread.” He did also say, however, that states with growing coronavirus outbreaks may not need to do an “absolute shutdown.”
More than 2 million people in the U.S. have been infected with the coronavirus so far, according to data compiled by Johns Hopkins University.
Reference: CNBC, Reuters
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