Stock Market Update Wednesday, June 3rd, 2020
Stocks opened higher and never looked back!
The rally came after better than expected data.
Today’s ADP Non-Farm Employment Change was a big surprise. The report showed that private sector jobs fell by 2.76 million in May, much lower than the 8.75 million estimate.
And ISM on-manufacturing data showed that manufacturing contracted in May. But data shows that the contraction was less than expected after an 11 year low in April.
After the higher start, the major indices rallied all morning.
Stocks were sideways during lunch. Then another surge higher in the afternoon pushed stocks to session highs.
There was a bit of a pullback right before the close, but it wasn’t enough to prevent the major indices from finishing higher for the 4th day in a row.
Stocks have made a pretty impressive comeback since coronavirus lows in late March. In fact, the S&P just had its biggest 50-day rally on record!
And although the NASDAQ lagged behind the major indices, the tech index is just one nice day away from record highs set on February 19th (just 1.6% away).
Here’s where the major indices ended the day:
- The S&P finished with a 1.4% gain. Up 42 points, the S&P ended at 3,123.
- The DOW ended higher by 2.1%. Adding 527 points the DOW closed at 26,270.
- The NASDAQ was up 0.8%. With a 75 point gain the NASDAQ finished at 9,683.
Crude Oil (CL) finished at a new 3-month high today. Up 1.3%, Crude Oil finished at $37.29 a barrel.
Banks and airlines jumped today.
American Airlines (AAL) finished higher by 5.6%, Delta (DAL) jumped 7.8%, and United Airlines (UAL) ended with a 12.5% gain.
Bank of America (BAC) was up 4.6%, JP Morgan Chase (JPM) finished higher by 5.4%, and Wells Fargo (WFC) added 5.2%.
But in an interesting twist, stocks that did great during the COVID-19 rebound lagged the market.
Amazon (AZMN) was up just 0.2%. And Walmart (WMT) lagged the overall market with a 0.4% loss.
Hydroxychloroquine was back in the news today after reports that the first randomized placebo-controlled trial showed that the drug wasn’t really any better than the placebo.
The study included 821 people in the U.S. who had been exposed to coronavirus. Of those exposed, 12% of the people given the drug developed COVID-19 while 14% who received the placebo were diagnosed with COVID-19.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.