S&P 500 opens in positive territory above 3,100

Marco Green
July 2, 2020

The Dow ended the second quarter with a 17.8 percent gain, the biggest quarterly gain since 1987.

Coming off a drop of 20 percent in the first quarter, the biggest quarterly decline since the financial crisis in the fourth quarter of 2008, the S&P rallied more than 19 percent to notch its biggest quarterly gain since 1998, at the height of the tech boom. The S&P 500, a proxy for the health of USA retirement and college savings accounts, gained 1.54 percent to finish at 3,100.29 while the tech-heavy Nasdaq Composite finished the day up 1.87 percent. The Nasdaq composite was up 0.8 per cent.

Constellation Brands, which sells Corona beer, rose 7.7 per cent after it also reported stronger quarterly results than analysts had forecast. But a recent resurgence of COVID-19 cases, particularly in the U.S. South and West, has raised doubts about whether those hopes were premature or overdone.

In the United States, a report said that the manufacturing sector returned to growth last month, a better reading than the slight contraction that economists were expecting.

Kicking off a data-heavy week for Wall Street, figures on Tuesday showed US consumer confidence increased much more than expected in June.

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, the companies said.

Earlier in the day, the monthly data published by the ADP revealed that the private sector employment in the United States increased by 2.36 million in June. Data on Wednesday showed a slump in global manufacturing was easing in June, with USA figures hitting their highest level in more than a year.

In the world's third-largest economy, a quarterly Bank of Japan survey showed manufacturers' sentiment plunged to its lowest level in more than a decade, as the pandemic crushes exports and tourism. A survey showed China's manufacturing activity improved in June, adding to signs of a gradual recovery. A similar survey for the 19-country eurozone showed an improvement in manufacturing in June, with the industry nearly growing again after widespread shutdowns.

Still, comments from Anthony Fauci, the USA government's top infectious diseases expert, who said there was no guarantee the U.S. will have an effective COVID-19 vaccine and warned the virus spread "could get very bad", were a reminder that a full economic recovery could be a long road.

In Asia, Japan's Nikkei 225 slipped 0.7%, South Korea's Kospi dipped 0.1% and stocks in Shanghai rose 1.4%. In Europe, France's CAC 40 dropped 0.2% and Germany's DAX lost 0.4%. The FTSE 100 in London was up 0.2%.

The yield on the 10-year ticked up slightly to 0.658 percent, 0.022 points higher.

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

A barrel of USA crude oil rose 0.6% to $39.50. Brent crude oil for September delivery rose 76 cents to $42.03 a barrel.

Other reports by Click Lancashire

Discuss This Article