Nasdaq hits record as Amazon crosses $3K and investors look past coronavirus cases
U.S. equity markets continued the July 4th celebration rallying across the board as the Nasdaq notched a fresh record.
Investors focused the government's disclosure of PPP fund recipients and the successful stimulus program as New York City began Phase 3 of its COVID-19 reopening. Also, Warren Buffett's Berkshire Hathway put its cash pile to work which was viewed as another sign of optimism.
The Dow Jones Industrial Average gained over 400 points, or 1.78 percent while the S&P 500 and the Nasdaq Composite were higher by 1.59 percent and 2.21 percent, respectively.
The Nasdaq, helped by Amazon crossing the $3K level for the first time, hit its 24th record-high close this year and the 150th under President Trump who didn't miss the opportunity to chime in on the tech-heavy gains via a tweet.
On Monday New York City began allowing places like nail salons and tattoo parlors to operate at 50 percent capacity. Indoor dining, however, is not yet permitted. Additionally, ISM non-manufacturing for June came out at 57.1, well ahead of the 50.1 that was expected. This followed last week's June jobs report which showed the U.S. economy added more workers than expected, both data points providing hope that an economic recovery could happen sooner than forecast.
Travel-related names, including airlines and cruise operators, continued to gain ground as the reopening of America takes shape.
Becton Dickenson’s rapid COVID-19 test, which can produce results in 15 minutes, has received emergency-use authorization from the Food and Drug Administration.
Elsewhere in the space, Regeneron has begun a Phase 3 trial for its experimental COVID-19 treatment. The drugmaker said following Thursday’s closing bell that a separate Phase 3 trial that was done in conjunction with Sanofi failed to meet its endpoint.
Warren Buffett’s Berkshire Hathaway bought Dominion Energy’s natural gas transmission and storage network for $9.7 billion, including debt. The deal is expected to close in the fourth quarter following regulatory approval.
Dominion and Duke Energy announced on Sunday they were ending their $8 billion Atlantic Coast pipeline.
Meanwhile, Uber reached a $2.65 billion all-stock deal for food-delivery platform Postmates. Uber will issue about 84 million shares to complete the transaction.
Tesla shares continued their ascent after JMP Securities raised its price target to $1,500, the highest on Wall Street. The firm believes Tesla will reach annual revenue of $100 billion by 2025.
TESLA TAUNTS CRITICS BY SELLING 'SHORT SHORTS'
On the commodities front, West Texas Intermediate crude oil was little changed at $40.63 a barrel while gold was up $4.50 to $1,788.50 an ounce.
U.S. Treasurys slid, causing the yield on the 10-year note to rise to 0.683 percent.
In Europe, Britain’s FTSE led the charge, up 1.91 percent while Germany’s DAX and France’s CAC rallied 1.63 percent and 1.54 percent, respectively.
CLICK HERE TO READ MORE ON FOX BUSINESS
Asian markets were higher across the board with China’s Shanghai Composite soaring 5.71 percent, Hong Kong’s Hang Seng surging 3.81 percent and Japan’s Nikkei climbing 1.83 percent.
Related Articles
