Nasdaq surges to record as NYC reopening enters Phase 3
Stock market rebound due to hopes for more coronavirus stimulus: Dion Rabouin
Axios markets editor Dion Rabouin says that the economy is in ‘bad shape’ but that the stock market will be fine as long as the Federal Reserve continues to pump liquidity into it. He also says the racial wealth gap will be closed through government assistance rather than homeownership.
U.S. equity markets were sharply higher Monday as traders returned from their extended holiday weekend to New York City reaching Phase 3 of its COVID-19 reopening and as Warren Buffett's Berkshire Hathway put its cash pile to work.
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The Dow Jones Industrial Average gained over 400 points, or 1.55 percent while the S&P 500 and the Nasdaq Composite were higher by 1.54 percent and 1.96 percent, respectively. The early gains had the Nasdaq on track for a 24th record-high close this year.
Stocks posted modest gains on Thursday after the June jobs report showed the U.S. economy added more workers than expected, providing hope that an economic recovery could happen sooner than forecast.
|I:DJI||DOW JONES AVERAGES||26112.14||+284.78||+1.10%|
|I:COMP||NASDAQ COMPOSITE INDEX||10398.383771||+190.76||+1.87%|
Beginning Monday, New York City will allow 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.
Travel-related names, including airlines and cruise operators, continued to gain ground as the reopening of America takes shape.
|AAL||AMERICAN AIRLINES GROUP INC.||12.55||+0.06||+0.44%|
|UAL||UNITED AIRLINES HLDG.||34.49||+0.35||+1.03%|
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.
|REGN||REGENERON PHARMACEUTICALS INC.||630.43||+7.98||+1.28%|
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.
|BRK.A||BERKSHIRE HATHAWAY INC.||273,600.00||+6,049.00||+2.26%|
|DUK||DUKE ENERGY CORPORATION||80.69||-1.15||-1.41%|
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'
|UBER||UBER TECHNOLOGIES INC.||32.08||+1.40||+4.55%|
On the commodities front, West Texas Intermediate crude oil fell 6 cents to $40.59 a barrel while gold was down $2.90 to $1,787.10 an ounce.
U.S. Treasurys slid, causing the yield on the 10-year note to rise by 2 basis points to 0.691 percent.
In Europe, Britain’s FTSE led the charge, up 1.68 percent while Germany’s DAX and France’s CAC rallied 1.53 percent and 1.51 percent, respectively.
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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.
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