Dow jumps 527 points with economic rebound in focus
U.S. equity markets secured a fourth straight day of gains Wednesday as investors received better-than-expected news on the jobs front and as the riots and looting that gripped America over the past week showed signs of abating.
The Dow Jones Industrial Average climbed 527 points, or 2.05 percent closing above 26,000, a key psychological level. The S&P 500 and the Nasdaq Composite gained 1.36 percent and 0.78 percent, respectively.
Financials, industrials and energy stocks helped drive the gains. West Texas Intermediate crude oil gained 1.3 percent to $37.29 a barrel.
Protests following the death of George Floyd continued across the country on Tuesday evening, but there were fewer reports of violence than on previous nights.
Meanwhile, the ADP Employment Report released Wednesday morning showed the private sector lost 2.7 million workers in May versus the 9 million job losses that analysts surveyed by Refinitiv were expecting. The report showed 20 million job losses in April. On Friday, the May jobs report will be released.
Looking at stocks, gun-related names that had seen big gains over the past few sessions cooled off. Heavily beaten-down airline stocks continued their recent grind higher while cruise operators turned lower.
Elsewhere, Tiffany & Co. shares were in focus after fashion trade publication Women’s Wear Daily reported board members of French luxury-goods maker LVMH expressed concerns about its acquisition of the jeweler.
Coty and Kim Kardashian West are in talks to collaborate on certain beauty products. The company paid $600 million for a 51 percent stake Kylie Cosmetics, owned by Kardashian West’s half-sister Kylie Jenner, in November.
On the earnings front, Zoom Video Communications reported better-than-expected earnings and revenue as the company benefitted from the increase in telecommuting caused by the COVID-19 pandemic. The company raised its full-year revenue outlook to between $1.78 billion and $1.8 billion, nearly double its previous forecast of $915 million.
Campbell Soup saw first-quarter earnings surge 31 percent as consumers stocked up on canned soup and other non-perishable items to ride out the COVID-19 pandemic from home.
Canada Goose warned it expects “negligible” revenue in its fiscal first quarter, a time when online sales reach a low point for the year, due to the uncertainty caused by COVID-19. The company’s fourth-quarter revenue outpaced Wall Street estimates.
Looking at metals, gold fell 1.59 percent to $1,697.80 an ounce and U.S. Treasurys were under pressure, pushing the yield on the 10-year note up to 0.679 percent.
Germany’s DAX led the advance in Europe, up 3.88 percent, while Britain’s FTSE and France’s CAC were higher by 2.61 percent and 3.36 percent, respectively.
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Markets gained across Asia with Hong Kong’s Hang Seng up 1.37 percent, Japan’s Nikkei higher by 1.29 percent and China’s Shanghai Composite edging up 0.07 percent.
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