· Dow jumps more than 500 points to start the week as Boeing and Apple rise
Stocks rose sharply to start the week Monday as Wall Street cheered news on Boeing and traders shrugged off the latest surge in coronavirus cases.
The Dow Jones Industrial Average closed 580.25 points higher, or 2.3%, at 25,595.80. It was the Dow’s best day since June 5, when it soared more than 3%. The S&P 500 jumped 1.5% to 3,053.24 while the Nasdaq Composite gained 1.2% to end the day at 9,874.15.
The major averages hit their session highs just minutes ahead of the close. That late-day surge put the S&P 500 in positive territory for the month with one trading day left.
“The bearish argument for the current market is breadth has not strengthened during this period of consolidation,” said Andrew Thrasher, founder of Thrasher Analytics, in a note. “That’s discouraging as more stocks have broken down along with the index.”
Thrasher noted 3,150 will be a key level to watch for investors. “I’m less interested in risky assets until we get back to that level,” he said.
· European markets close higher despite surge in U.S. coronavirus cases
European stocks closed higher Monday, despite a rising coronavirus death toll and surging cases in the U.S.
The pan-European Stoxx 600 provisionally closed up 0.6%, with most sectors and major bourses in positive territory. Bank stocks were the top performers, climbing more than 2%.
Investors are digesting news that the coronavirus has now killed more than 500,000 people around the world, according to data compiled by Johns Hopkins University. The number of confirmed infections has also exceeded 10 million.
The U.S. accounts for more than 20% of all reported deaths caused by Covid-19, more than any other country in the world, according to the data, followed by Brazil, the U.K., Italy and France. However, country-to-country comparisons of the death toll are difficult due to differences in reporting methods.
Market sentiment appeared to improve Monday after Gilead Sciences announced the pricing plan for its coronavirus treatment candidate remdesivir. The drug will cost $3,120 for a typical U.S. patient with commercial insurance. The company intends to begin charging for the drug in July.
· Japan up nearly 2% as Asia stocks rise ahead of China manufacturing activity data release
Stocks in Asia Pacific rose in Tuesday morning trade as investors await the release of China’s official manufacturing Purchasing Manager’s Index.
The Nikkei 225 in Japan rose 1.75% in early trade, following its more than 2% slide on Monday. The Topix index also added 1.5%. In South Korea, the Kospi gained 1.39%.
Meanwhile, the S&P/ASX 200 in Australia added 0.66%.
Overall, the MSCI Asia ex-Japan index traded 0.33% higher.
Investors await the release of China’s official manufacturing PMI for June, set to be released around 9:00 a.m. HK/SIN on Tuesday. Economists in a Reuters poll have a median forecast of 50.4 for the data print, above the 50 level that indicates expansion in activity.
Meanwhile, Japan’s industrial production in May dropped 8.4% month-on-month, according to data released Tuesday in a preliminary report by the country’s Ministry of Economy, Trade and Industry. That was a larger decline than a median market forecast of a 5.6% fall by economists in a Reuters poll.
Developments surrounding the coronavirus pandemic will also continue to be watched, with World Health Organization chief Tedros Adhanom Ghebreyesu warning Monday that “the worst is yet to come.”
Reference: CNBC, Reuters
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