Wall Street rises as investors look beyond rising virus cases – Reuters

NEW YORK (Reuters) – Wall Street’s three major indexes gained ground on Monday with the biggest boost from technology stocks as investors appeared to look past the potential economic impact of rising coronavirus cases in the United States and other major economies.

FILE PHOTO: Traders exit the 11 Wall St. door of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 11, 2020. REUTERS/Brendan McDermid

The World Health Organization reported a record rise in global coronavirus cases on Sunday, driving demand for perceived safe havens including gold and longer-term U.S. Treasuries. [US/][GOL/]

While New York City on Monday celebrated the lifting of many coronavirus restrictions, a dozen states in the U.S. South and Southwest reported record increases in new cases with 10% to 20% of people testing positive in some.

However White House economic adviser Larry Kudlow told CNBC earlier in the day that there was no second wave of the pandemic and that it is unlikely there will be widespread shutdowns across the country.

Investors were also looking past the current quarter and into 2021, when earnings are expected to start improving according to Sam Stovall, chief investment strategist at CFRA.

Analysts expect a 42.7% drop in earnings per share for the second quarter, according to estimates gathered by Refinitiv.

“It can’t get much worse than this. People are hoping that and concluding that you can’t injure yourself by falling out of a basement window,” said Stovall.

But he asked, “How can you really get optimistic about what you don’t know? … Wall Street looks to the other side of the valley but we still don’t know how low or wide the valley is.”

At 2:18 p.m. ET, the Dow Jones Industrial Average rose 72.31 points, or 0.28%, to 25,943.77, the S&P 500 gained 12.51 points, or 0.40%, to 3,110.25 and the Nasdaq Composite added 80.83 points, or 0.81%, to 10,026.96.

Of the S&P’s 11 major sectors, technology was leading with a 1.6% gain. However the next biggest gainer was the defensive utilities sector, up 1.3%, suggesting that investors were not throwing all caution to the wind.

The market took a step back on Friday after Apple Inc’s move to temporarily shut some U.S. stores again underscored concerns of a delay in the recovery.

But Apple shares were up more than 2% on Monday and trading at record highs as the company announced new products at its annual conference for software developers.

Travel-related stocks were some of the weakest as investors in those companies have been hit hard in the past by the virus lockdowns.

The S&P 1500 airlines index dropped 0.7%, while shares of cruise operators Norwegian Cruise Line and Royal Caribbean Cruises both tumbled about 7%.

The S&P 500 has climbed some 42% from its March lows and the Nasdaq hit a record high earlier this month thanks to trillions of dollars in monetary and fiscal support, the reopening of businesses and improving economic data.

The S&P 500 was last about 8% off its Feb. 19 record high.

U.S.-based meat processor Tyson Inc slipped 2.8% as China’s customs authority suspended imports of poultry products from a plant owned by the company that had been hit by the coronavirus.

American Airlines Group Inc fell 7% as it planned to secure $3.5 billion in new financing by selling shares and convertible senior notes to boost liquidity.Virgin Galactic Holdings Inc soared 12.5% as it signed up with NASA to develop a program to promote private missions to the International Space Station.

Declining issues outnumbered advancing ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored advancers.

The S&P 500 posted 12 new 52-week highs and no new lows; the Nasdaq Composite recorded 110 new highs and seven new lows.

Related Content

Up to 50,000 South Africans could die this year of COVID-19

President Ramaphosa also admitted that there was a shortfall of 12000 healthcare workers. Despite this there were 28000 hospital beds as well as 37000 private quarantine beds for those unable to isolate at home, along with 1700 ventilators.

Sudan’s 37 dry years are over for its non-Muslims

Non-Muslims will no longer be criminalised for drinking alcohol in private, Justice Minister Nasredeen Abdulbari told state television. For Muslims, the ban will remain. Offenders are typically flogged under Islamic law.

One of the influential fathers of power in Africa dies aged 90

There is no doubt that his integrity, credibility, drive, inherent humility and care for people, also profoundly helped to motivate Eskom staff during many difficult times.

Veteran Zimbabwe farmer pours cold water on $58 million mission from Belarus with love.

“Belarus tractors have never been known for their quality or power. They were never bought by Zimbabwe farmers in the past. Training up 1000 Zimbabwe farmers isn’t the answer.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

More from CNBC Africa

Up to 50,000 South Africans could die this year of COVID-19

President Ramaphosa also admitted that there was a shortfall of 12000 healthcare workers. Despite this there were 28000 hospital beds as well as 37000 private quarantine beds for those unable to isolate at home, along with 1700 ventilators.

Sudan’s 37 dry years are over for its non-Muslims

Non-Muslims will no longer be criminalised for drinking alcohol in private, Justice Minister Nasredeen Abdulbari told state television. For Muslims, the ban will remain. Offenders are typically flogged under Islamic law.

One of the influential fathers of power in Africa dies aged 90

There is no doubt that his integrity, credibility, drive, inherent humility and care for people, also profoundly helped to motivate Eskom staff during many difficult times.

Building Africa’s Prosperity EP7: Addressing infrastructure challenges in SA’s municipalities

Building Africa's Prosperity places the spotlight on economic growth and filling the infrastructure gap on the African continent. In this episode, CNBC Africa's Chris Bishop and his guests talk about Infrastructure Challenges in Municipalities....

Partner Content

Uber launches its largest region-wide initiative in partnership with Mastercard

Uber, in partnership with Mastercard to provide 120,000 free trips to frontline workers in MEA, including South Africa, Nigeria, Kenya, Ivory Coast...

Maktech’s Godwin Makyao: Now Is A Time of Entrepreneurial Opportunity in East Africa

As an executive decision-maker in both the telecommunications and tourism industries, Godwin Makyao could not have experienced a more diverse set of...

Trending Now

COMMENT: AfCFTA is economic medicine Africa needs to recover from the covid-19 pandemic

he vast market created by AfCFTA will provide an immediate boon to nascent plans being guided by the African CDC, NEPAD and others to produce various critical healthcare items such as pharmaceutical compounds, PPE and ventilators in countries such as Nigeria, South Africa and Kenya.

More than 70 workers test positive for COVID-19 on an English farm

The number of new confirmed COVID-19 cases across Britain each day has been falling from a peak of more than 6,000 in April to 650 in the latest figures released on Sunday, despite wider availability of testing.

African born tycoon Elon Musk Tesla slashes prices as pandemic weighs heavily

The company headed by Elon Musk this month posted a smaller-than-expected fall in car deliveries in the second quarter, resilient results despite the pandemic that hit the global auto industry.

COVID-19: No more booze for now says Ramaphosa

"We have to make sure there are sufficient beds in hospital and they are not occupied by people who have been taking alcohol,"says Ramaphosa.
- Advertisement -