Asia Morning: US Stocks Up for Second Session
Ming Lam May 6, 2020 2:38 AM
Market sentiment kept improving along with countries and U.S. states easing their coronavirus-induced restrictions...
On Tuesday U.S. stocks posted gains for a second session. Market sentiment kept improving along with countries and U.S. states easing their coronavirus-induced restrictions.
The Dow Jones Industrial Average rose 133 points (+0.6%) to 23,883, the S&P 500 gained 25 points (+0.9%) to 2,868, and the Nasdaq 100 jumped 96 points (+1.1%) to 8,930.
Source: GAIN Capital, TradingView
Health Care Equipment & Services (+2.48%), Automobiles & Components (+2.05%) and Pharmaceuticals, Biotechnology & Life Sciences (+1.89%) sectors performed the best.
IPG Photonics (IPGP +21.0%), Jack Henry & Associates (JKHY +8.8%), Mosaic (MOS +7.3%) and Regeneron Pharmaceuticals (REGN +6.0%) were top gainers.
On the other hand, Norwegian Cruise Line (NCLH -22.6%) and WestRock (WRK -17.3%) lost big.
On the technical side, about 22.8% (21.6% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 54.3% (62.4% in the prior session) were above their 20-day moving average.
Regarding U.S. economic data, the Markit U.S. Services Purchasing Mangers' Index (final reading) posted at 26.7 for April (27.0 expected), a record low. The Institute for Supply Management's (ISM) Non-Manufacturing Index came in at 41.8 (37.8 expected), the lowest level since 2009.
The U.S. Commerce Department reported that Trade Deficit widened to 44.4 billion dollars in March (44.2 billion dollars expected).
U.S. President Donald Trump said that the White House coronavirus task force will wind down as the country moves into a second phase that focuses on the aftermath of the outbreak.
European stocks rebounded, with the Stoxx Europe 600 Index gaining 2.2%. Germany's DAX rebounded 2.5%, France's CAC climbed 2.4%, and the U.K.'s FTSE 100 was up 1.7%.
U.S. Treasuries eased in price, as the benchmark 10-year Treasury yield climbed to 0.652% from 0.636% Monday.
Spot gold price increased 5 dollars to $1,705 an ounce.
Oil prices continued their rally, boosted by improving market sentiment. U.S. WTI crude oil futures (June) surged 20.5% to $24.56 a barrel, and Brent crude oil futures jumped 13.9% to $30.97 a barrel.
On the forex front, the ICE U.S. Dollar Index rose 0.3% on day to 99.81, up for a second straight session.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.