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Wall Street jumps on strong services sector, hopes of China recovery

(Reuters) – U.S. stocks rose sharply on Monday as a rebound in U.S. services industry activity in June and expectations of a revival in China’s economy boosted optimism, helping investors look past a surge in new coronavirus cases in the United States.

The Institute for Supply Management’s (ISM) non-manufacturing activity index almost returned to its pre-COVID-19 pandemic levels last month, jumping to a reading of 57.1, the highest since February, from 45.4 in May, a report showed.

“These numbers are important, and it helps to explain the increase in consumer confidence,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

Investors also bet on an improving Chinese economy and its impact on the global growth as the yuan led commodity currencies higher against the dollar. Earlier, Chinese stocks jumped more than 5%.

A slew of upbeat U.S. data recently, including a record rise in monthly payrolls, has powered the Nasdaq to all-time highs and has driven the S&P 500 up more than 40% from its March 23 closing low.

The gains came despite a record surge in new COVID-19 cases in 16 states in the United States this month that could further hamper reopening plans and create a risk to the economic recovery.

Over the Independence Day weekend, several states reported a record increase in new infections, with Florida surpassing the highest daily tally reported by any European country during the peak of the outbreak there.

The Dow Jones Industrial Average rose 459.67 points, or 1.78%, to 26,287.03, the S&P 500 gained 49.71 points, or 1.59%, to 3,179.72 and the Nasdaq Composite added 226.02 points, or 2.21%, to 10,433.65.

Online retail giant Amazon.com crossed $3,000 for the first time and provided the biggest boost to the S&P 500 and the Nasdaq. The stock rose 5.8% to end at $3,057.04.

Tesla Inc shares jumped 13.5%, rising for the fifth session as JPMorgan bumped up its price target for the electric carmaker’s stock following better-than-expected quarterly deliveries.

Uber Technologies Inc climbed 6% after the ride-sharing company agreed to buy food-delivery app Postmates Inc in a $2.65-billion all-stock deal.

Advancing issues outnumbered declining ones on the NYSE by a 2.54-to-1 ratio; on Nasdaq, a 1.88-to-1 ratio favored advancers.

The S&P 500 posted 38 new 52-week highs and no new lows; the Nasdaq Composite recorded 152 new highs and 14 new lows.

Volume on U.S. exchanges was 10.91 billion shares, compared with the 12.9 billion average for the full session over the last 20 trading days.

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Coronavirus: Stocks surge globally after biggest daily rise since 2015 in China

Global stock markets have surged despite rising clusters of coronavirus infections threatening to derail economic recovery.

Investors took the lead from China’s benchmark Shanghai Composite index, which jumped by 5.8% on Monday to record its biggest daily increase in five years.

Analysts said the share spending spree was fuelled by cheap funding to invest in an economy that analysts predict will recover faster and better than other major countries battling new waves of infections.

They include the US, the world’s largest economy, which is enduring rising numbers of COVID-19 cases in 41 states, with Florida witnessing record daily growth in confirmed sufferers.

Edward Moya, senior market analyst at OANDA in New York, said only a big acceleration in fatalities would likely affect market sentiment as the S&P 500 on Wall St ground out a fifth day of consecutive gains on Monday to close 1.5% up.

Europe and US trading saw sectors with strong exposure to China outperforming as data covering its economy continues to suggest a steady return to activity.

The FTSE 100 in London gained 2.1% – leaving it 16% short of its 2020 peak – with housebuilders also helping to lead the way amid reports the UK’s Chancellor of the Exchequer, Rishi Sunak, is to provide support for the housing market through Stamp Duty concessions for properties worth up to £500,000.

Barratt Developments put on 8%.

The tech-focused Nasdaq in New York hit record new levels after a closely-watched report showed much better than expected growth for US services firms in June.

The report was released against the backdrop of US employment figures last week that showed a record 4.8 million net jobs were created last month, though most of those were accounted for through re-hires.

Among individual stocks Tesla, the world’s biggest carmaker by market value since last month, surged 10% at one stage on Monday after a new analyst “buy” rating.

Uber Technologies climbed 6.4% after the ride-sharing company agreed a $2.65bn all-stock deal to buy food-delivery app Postmates.

Commenting on the wider market mood, Peter Essele, head of portfolio management for Commonwealth Financial Network, said: “The worse-case scenario for markets is that governments resume the lockdowns implemented during the spring, which led to the sudden recession that swept the world, and choke off the budding economic recovery. “

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Wall Street set to open higher on hopes of China-led rebound

(Reuters) – Wall Street’s main indexes were set to open higher on Monday, with the Nasdaq eyeing another record level, as bets on China leading the revival from a coronavirus-driven downturn helped investors look past a surge in new cases of COVID-19 at home.

China stocks jumped more than 5%, boosted by ample liquidity, cheap funding and expectations of a faster and a better bounce-back in business activity than other major countries still battling the coronavirus crisis. [.SS]

A slew of upbeat U.S. data, including a record rise in June payrolls, helped the Nasdaq close at an all-time high on Thursday and brought the S&P 500 and the Dow nearly 8% and 13% below their respective peaks from February.

“Investors are more focused on what the other side of this pandemic looks like, as opposed to the short-term risks of shutdowns,” said Matt Lindholm, managing director – investment strategies at CAZ Investments in Houston.

A sharp surge in COVID-19 cases recently in the United States has cast a shadow over the strong rally in stocks as many states have curtailed their reopening plans, threatening to derail the economic recovery.

During the Independence Day weekend, several states reported a record increase in new infections, with Florida surpassing the highest daily tally reported by any European country during the peak of the outbreak.

Data at 10 a.m. ET (1400 GMT) is likely to show ISM’s non-manufacturing activity index rose to a reading of 50.1 in June from 45.4 in May.

At 8:01 a.m. ET, Dow e-minis were up 375 points, or 1.46%. S&P 500 e-minis were up 37.75 points, or 1.21% and Nasdaq 100 e-minis were up 122 points, or 1.18%.

Among individual stocks, Tesla Inc gained 5.8% in premarket trading, building on a four-day rally, after J.P. Morgan bumped up its price target for the electric carmaker’s stock following its better-than-expected quarterly deliveries.

Uber Technologies Inc climbed 6.7% as the ride-sharing company agreed on a deal to buy food-delivery app Postmates Inc in a $2.65-billion all-stock agreement.

Regeneron Pharmaceuticals Inc gained 3.1%, as the drugmaker said it had begun late-stage clinical trials to assess the effectiveness of its antibody cocktail in preventing and treating COVID-19.

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Futures firm on bets of China-led rebound

(Reuters) – U.S. stock index futures rose on Monday as bets on China leading the revival from a coronavirus-driven downturn helped investors look past a domestic surge in new infections over the long weekend.

A slew of encouraging U.S. economic data, including record weekly job additions, helped the Nasdaq .IXIC end at an all-time closing high last week and brought the S&P 500 .SPX and Dow .DJI nearly 8% and 13% below their respective peaks from February.

However, a surge in coronavirus cases has cast a shadow over the strong rally in stocks as many U.S. states have curtailed their reopening plans, threatening to derail the economic recovery.

The Independence day weekend saw a record increase in new infections in several states, with Florida surpassing the highest daily tally reported by any European country during the height of the outbreak.

China stocks rose over 5% on Monday, boosted by ample liquidity, cheap funding and expectations of a faster and better bounce back in business activity than other major countries still battling coronavirus infections. [.SS]

Data at 10 a.m. ET (1400 GMT) is likely to show ISM’s non-manufacturing activity index rose to a reading of 50.1 in June from 45.4 in May.

At 6:21 a.m. ET, Dow e-minis 1YMcv1 were up 391 points, or 1.52%. S&P 500 e-minis EScv1 were up 39.5 points, or 1.26% and Nasdaq 100 e-minis NQcv1 were up 130.25 points, or 1.26%.

Among stocks, Tesla Inc (TSLA.O) gained 6.3%, building on a four-day rally as J.P. Morgan bumped up its price target for the electric carmaker’s stock following its better-than-expected quarterly deliveries.

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Wall Street jumps on record payrolls surge

NEW YORK (Reuters) – Wall Street advanced on Thursday as investors headed into their long holiday weekend buoyed by a record payrolls jump, which provided assurance that the U.S. economic recovery was well under way.

All three major U.S. stock averages were more than 1% higher, with the S&P 500 set to post its fourth straight daily advance and the Nasdaq on course to reach a second straight all-time closing high.

Massive stimulus and hopes for a speedy economic rebound have returned the S&P 500 and the Nasdaq to about 7% and 12% below their record highs reached in February.

The indexes are all on track for solid weekly percentage gains.

The U.S. economy added 4.8 million jobs in June according to the Labor Department, 1.8 million more than analysts expected, setting a second consecutive record.

Massive rehiring sent the unemployment rate down to 11.1%.

“A lot of these numbers when you dig into the report – average weekly hours people are working, average hourly earnings … those things are just showing that we are getting back to work,” said Justin Hoogendoorn, head of Fixed Income Strategic Analytics at Piper Sandler in Chicago. “And that’s what’s going to allow the stock market to continue to perform well.”

Even with May and June’s consecutive record payroll gains, the labor market has still recovered only a fraction of the 22 million jobs lost in the March-April plunge.

The recovery of the U.S. economy, now in its sixth month of recession, could stall as new cases of COVID-19 hit record levels and several states hit hardest by the resurgence halted or reversed plans to reopen their economies.

On Thursday, Florida reported a record-shattering 10,000 new cases of the disease, worse than any European country reported at the peak of their outbreaks.

In the coming weeks, market participants will train their focus on second-quarter reporting season. In aggregate, analysts now expect S&P earnings to have dropped by 43.1% as companies grappled with plunging demand and disrupted supply chains.

The Dow Jones Industrial Average rose 298.31 points, or 1.16%, to 26,033.28, the S&P 500 gained 36.36 points, or 1.17%, to 3,152.22 and the Nasdaq Composite added 120.31 points, or 1.18%, to 10,274.94.

All 11 major sectors in the S&P 500 were trading in the black, with energy shares enjoying the largest percentage gain.

Microsoft Corp provided the biggest boost to the S&P 500 and the Nasdaq, and in June retained its top spot as the most globally invested stock, according to data from trading platform eToro.

Airlines, battered by pandemic-related travel restrictions, gained altitude. The S&P 1500 Airlines index was up 1.2%

Tesla Inc jumped 7.8% after the electric car maker’s second-quarter vehicle deliveries beat Wall Street estimates.

Advancing issues outnumbered declining ones on the NYSE by a 2.98-to-1 ratio; on Nasdaq, a 1.68-to-1 ratio favored advancers.

The S&P 500 posted 35 new 52-week highs and no new lows; the Nasdaq Composite recorded 115 new highs and 10 new lows.

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Record job growth powers Wall Street, Nasdaq hits all-time high

(Reuters) – Wall Street opened higher on Thursday, with the Nasdaq hitting an all-time high as data showed the U.S. economy added jobs at a record pace in June, the latest signal of a rebound in business activity following the easing of coronavirus-led lockdowns.

Nonfarm payrolls rose by 4.8 million jobs in June, the Labor Department’s closely watched monthly employment data showed, the most since the government began keeping records in 1939, although a recent surge in COVID-19 cases has threatened the fledgling recovery.

All 11 major S&P sectors were trading higher and gains were led by financials, basic materials and energy stocks.

“The strong rebound would normally be an unambiguously positive sign that a recovery is under way (but) it is being accompanied by a sharp rise in new infections, which was what caused the collapse in the first place,” said Mike Bell, global market strategist at JP Morgan Asset Management in London.

“It is therefore too soon to say for certain that this recovery in employment sounds the all-clear for investors.”

Several states are scaling back or pausing reopenings to tackle the spike in infections and analysts have warned of another selloff in financial markets if the damage to Corporate America mounts.

Third-quarter earnings for S&P 500 companies are now expected to tumble 25%, compared with a forecast of a 2.7% drop on April 1, according to Refinitiv data. In the second quarter, earnings are forecast to have plunged 43%.

“People are less concerned about earnings than they are about the guidance and what companies say about the next six months and 2021,” said Thomas Hayes, managing member at Great Hill Capital Llc in New York.

At 10:10 a.m. ET, the Dow Jones Industrial Average was up 431.49 points, or 1.68%, at 26,166.46, the S&P 500 was up 46.08 points, or 1.48%, at 3,161.94, and the Nasdaq Composite was up 147.27 points, or 1.45%, at 10,301.90.

Tesla Inc jumped 8.5% and was set for a fourth straight session of gains after beating Wall Street estimates for second-quarter vehicle deliveries.

Travel-related stocks were also among the biggest gainers, with cruise line operators Carnival Corp, Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd rising more than 2%.

Coty Inc added 5.3% after it named former top executive of L’Oreal, Sue Nabi, as its chief executive officer.

Advancing issues outnumbered decliners more than 8-to-1 on the NYSE and 3-to-1 on the Nasdaq.

The S&P index recorded 30 new 52-week highs and no new low, while the Nasdaq recorded 84 new highs and six new lows.

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European stocks surge as cyclicals rally, U.S. jobs data awaited

(Reuters) – European shares climbed on Thursday as encouraging economic data from across the globe and hopes of a COVID-19 vaccine lifted sentiment ahead of the crucial U.S. jobs data.

The pan-European STOXX 600 rose 1.2% to mark its fourth consecutive day of gains. Banks .SX7P, automakers .SXAP and travel & leisure .SXTP firms were the top gainers, jumping between 2.7% and 3.4%.

Financial markets entered the second half of the year on a cheerful note earlier this week, as business surveys showed a coronavirus-induced slump in global manufacturing eased in June.

Adding to optimism, a COVID-19 vaccine developed by German biotech firm BioNTech (BNTX.O) and U.S. pharmaceutical giant Pfizer (PFE.N) was found to be well-tolerated in early stage human trials.

All eyes are on the U.S. payrolls data, due at 1230 pm GMT. Economists have estimated that job numbers rose by 3 million in June, rebounding further after a historic 20.69 million plunge in April.

However, a spike in U.S. infections fuelled uncertainty.

New U.S. cases of COVID-19 jumped nearly 50,000 on Wednesday, according to a Reuters tally, marking the biggest one-day rise since the start of the pandemic.

“Given the ongoing threat from stubbornly rising infection numbers in key U.S. states, there seems to be little potential for the labour market report to produce a distinct upward push to the general market sentiment, as it did four weeks ago,” UniCredit analysts wrote in a note.

The end of the lockdown failed to bring a surge in employment in Spain as data showed that the 900,000 jobs lost at the peak of the pandemic had not been regained.

Among individual movers, Associated British Foods (ABF.L) jumped 7.3% after saying trading in its Primark fashion stores that reopened after the lockdown has been “reassuring and encouraging”.

German fashion house Hugo Boss (BOSSn.DE) rose 2.6% after it appointed Tommy Hilfiger executive Oliver Timm as its chief sales officer.

Scandal-hit Wirecard (WDIG.DE) slumped 27.1% after police and public prosecutors raided its headquarters in Munich and four properties in Germany and Austria.

Cardboard maker DS Smith (SMDS.L) fell 7.3% after saying it was too early to resume dividends in the short-term due to market uncertainty caused by the pandemic.

Dutch construction company BAM Groep (BAMN.AS) dropped 11.6% as it warned of a “significant” loss in the first half of the year.

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S&P, Nasdaq higher on vaccine hopes, improving economic data

(Reuters) – The S&P 500 and Nasdaq rose on Wednesday as rising hopes of a COVID-19 vaccine offset fears of another round of lockdowns following a record surge in coronavirus cases in the United States.

A COVID-19 vaccine developed by Pfizer Inc and German biotech firm BioNTech showed promise and was found to be well tolerated in early-stage human trial, the companies said.

Pfizer’s shares rose 4.8% on the news, one of the biggest boost to the S&P 500 index, while BioNTech gained 3%, helping improve the mood on Wall Street after the United States registered 47,000 new coronavirus cases on Tuesday, the biggest one-day spike since the start of the pandemic.

Updates on the progress in various COVID-19 vaccine programs are being closely watched by investors, and have been partly responsible for Wall Street’s recent rally. The S&P 500 closed its best quarter since 1998 on Tuesday.

The market in general has reacted positively to these bits of news as they are all tied to the COVID situation, said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey. “The COVID-19 is the linchpin to the market right now.”

The S&P 500 on Tuesday secured its biggest quarterly percentage gain in more than two decades fueled by unprecedented levels of fiscal and monetary stimulus.

Investors have also focused on signs of an economic recovery with the easing of coronavirus-induced lockdowns. Data on Wednesday showed a slump in global manufacturing was easing in June, with U.S. figures hitting their highest level in more than a year.

The Institute for Supply Management (ISM) said its index of national factory activity jumped to a reading of 52.6 last month from 43.1 in May, ending three straight months of contraction, or readings below 50.

On Thursday, all eyes will be on the Labor Department’s nonfarm payrolls report.

“The manufacturing number adds a boost to investor confidence. And now the market is positioning itself in anticipation for tomorrow’s numbers,” Bakhos added.

The ADP National Employment Report on Wednesday showed U.S. private payrolls increased by 2.369 million jobs, but still less than expected in June.

At 11:43 a.m. ET the Dow Jones Industrial Average was down 19.88 points, or 0.08%, at 25,793.00, the S&P 500 was up 8.47 points, or 0.27%, at 3,108.76 and the Nasdaq Composite was up 56.63 points, or 0.56%, at 10,115.39.

Battered cruise line operators Norwegian Cruise Line Holdings Inc, Royal Caribbean Cruises Ltd and Carnival Corp rose between 3.6% and 6.0%.

Drugmaker Amgen Inc rose 5% after a federal appeals court upheld two patents for the drugmaker’s multibillion-dollar rheumatoid arthritis drug Enbrel.

FedEx Corp jumped 14.3% after posting better-than-expected quarterly profit and revenue, helped by a surge in pandemic-fueled home deliveries.

Declining issues nearly matched advancers on the NYSE and outnumbered them 1.46-to-1 on the Nasdaq.

The S&P index recorded 13 new 52-week highs and no new low, while the Nasdaq recorded 64 new highs and eight new lows.

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Wall Street gains on vaccine hopes, improving economic data

(Reuters) – Wall Street opened higher on Wednesday as rising hopes of a COVID-19 vaccine reversed premarket losses, overshadowing fears of another round of lockdowns following a record surge in coronavirus cases in the United States.

A COVID-19 vaccine developed by Pfizer Inc and German biotech firm BioNTech showed promise and was found to be well tolerated in early-stage human trials.

Pfizer’s shares jumped 4.1% on the news, while BioNTech gained 3%, helping improve the mood on Wall Street after the United States registered 47,000 new coronavirus cases on Tuesday, the biggest one-day spike since the start of the pandemic.

Updates on the progress in various COVID-19 vaccine programs are being closely watched by investors, and have been partly responsible for Wall Street’s recent rally. The S&P 500 closed its best quarter since 1998 on Tuesday.

Investors have also focused on signs of an economic recovery with the easing of coronavirus-induced lockdowns. Data on Wednesday showed that a slump in global manufacturing was easing in June, with U.S. figures hitting their highest level in more than a year.

The Institute for Supply Management (ISM) said its index of national factory activity jumped to a reading of 52.6 last month from 43.1 in May, ending three straight months of contraction.

On Thursday, all eyes will be on the Labor Department’s nonfarm payrolls report.

At 10:17 a.m. ET, the Dow Jones Industrial Average was up 113.35 points, or 0.44%, at 25,926.23, the S&P 500 was up 16.78 points, or 0.54%, at 3,117.07. The Nasdaq Composite was up 40.39 points, or 0.40%, at 10,099.15.

Battered cruise line operators Norwegian Cruise Line Holdings Inc, Royal Caribbean Cruises Ltd and Carnival Corp rose between 3.6% and 6%.

Macy’s Inc edged up 1.7% after it reported a staggering $3.58 billion quarterly loss, led by a $3 billion impairment charge due to COVID-19 induced-store shutdowns.

FedEx Corp jumped 16.0% after posting better-than-expected quarterly profit and revenue, helped by a surge in pandemic-fueled home deliveries.

Advancing issues outnumbered decliners by a 2.76-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.39-to-1 ratio on the Nasdaq.

The S&P index recorded 7 new 52-week highs and no new lows, while the Nasdaq recorded 48 new highs and 6 new lows.

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Wall Street set for lower open after strong quarterly rebound

(Reuters) – Wall Street was set to open lower on Tuesday as coronavirus-related worries and simmering U.S.-China tensions weighed on sentiment at the end of what is expected to be the S&P 500’s best quarter since 1998.

The benchmark index has rebounded about 18% since April on a raft of fiscal and monetary stimulus and the easing of restrictions, but is still down about 5% on the year as a resurgence in virus cases fuels fears of a new round of lockdowns.

With California and Texas marking a record spike in cases on Monday, investors are counting on more stimulus to shore up the domestic economy.

“While traders remain curiously cautious waiting for the next catalyst, they are also keeping risk on a short leash into the long weekend,” said Stephen Innes, markets strategist at AxiCorp.

“COVID-19 de-risking playbooks are still in play and investors are not aggressively buying dips while booking profit quickly.”

Federal Reserve Chair Jerome Powell, who is due to testify before the U.S. House of Representatives Financial Services Committee at 12:30 p.m. ET, said in prepared remarks that the outlook for the world’s biggest economy was “extraordinarily uncertain”.

Sino-U.S. tensions are heating up again with Washington beginning to eliminate Hong Kong’s special status under U.S. law in response to China’s national security law for the territory. China’s parliament passed the legislation on Tuesday and the country said it would retaliate.

“If the environment between the United States and China continues to deteriorate, the market is not going to be happy, but because very little has been known about what’s going on with those new laws, it’s not having much of an impact yet,” said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York.

Analysts also warned of increased volatility as traders rebalance their portfolios at the end of the quarter.

Meanwhile, kicking off a data-heavy week for Wall Street, consumer confidence is expected to have climbed to 91.8 in June from 86.6 in May. Data on manufacturing activity and employment are due on Wednesday and Thursday.

At 8:34 a.m. ET, Dow e-minis 1YMcv1 were down 127 points, or 0.50%, S&P 500 e-minis EScv1 were down 11 points, or 0.36% and Nasdaq 100 e-minis NQcv1 were down 26 points, or 0.26%.

In premarket moves, Boeing Co (BA.N) tumbled 3.1% after Norwegian Air (NWC.OL) canceled orders for 97 aircraft and said it would claim compensation.

Micron Technology Inc (MU.O) jumped 5.5% as it forecast higher-than-expected current-quarter revenue on strong demand for its chips that power notebooks and data centers.

Uber Technologies Inc (UBER.N) rose 3.8% after reports said the ride-hailing services company was in talks to buy food-delivery app Postmates.

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