Stocks climb as US reopening gathers steam

Stock market is strong despite  ‘atrocious’ real economy: Expert

Farvahar Partners CEO and founder Omeed Malik discusses the American economy’s performance during the coronavirus pandemic. 

U.S. equity markets surged Tuesday as plans to reopen parts of the country gained momentum.

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The Dow Jones Industrial Average climbed 232 points, or 0.98 percent, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite rose 1.01 percent and 1.12 percent, respectively.

California, which has imposed some of the strictest shelter-in-place measures, will move into Stage 2 of its reopening plan by the end of the week, allowing for retail, manufacturing and other “low-risk” businesses to unlock their doors, Gov. Gavin Newsom announced at a Monday evening press conference. The relaxation in rules won't apply to the San Francisco Bay area.

On Tuesday, Calfornia’s Laguna Beach will reopen, and Washington State will allow outdoor activities such as hunting, fishing and golfing to resume.

CORONAVIRUS REOPENING PLAN DEALS LAS VEGAS CASINOS A LOSING HAND

Looking at stocks, drugmaker Pfizer and BioNTech have begun a trial for a COVID-19 vaccine that, if approved, could be available by the end of the year.

Norwegian Cruise Line Holdings announced a $350 million share offering and plans to use the cash raised for general purposes as it navigates a choppy business environment.

L Brands agreed to scrap the sale of a controlling stake in its Victoria’s Secret business to the private-equity firm Sycamore Partners after the pandemic forced the retailer to close stores and lose sales. The company is now planning to spin off Victoria’s Secret into a separate company.

Rental-car company Hertz Global Holdings has hired another adviser as it edges closer to bankruptcy, The Wall Street Journal reported on Monday evening.

On the earnings front, Shake Shack reported first-quarter store sales plunged 12.8 percent from a year ago as the burger chain moved to a “to-go only” model in March to comply with social-distancing orders.

Marathon Petroleum reported a $9.2 billion first-quarter loss and announced plans to slash capital spending and operating costs as it wades through the sharp drop in petroleum demand caused by “stay-at-home” orders aimed at slowing the spread of COVID-19.

DuPont lost $616 million in the first quarter as automotive, oil and gas and other industries suffered supply-chain disruptions due to the pandemic. The chemical maker did, however, see strong demand for personal protection equipment

Entertainment giant Disney is set to release its quarterly results after Tuesday’s closing bell.

West Texas Intermediate crude oil rallied 10.7 percent to $25.22 a barrel and has seen its price more than double during the current five-day winning streak. Meanwhile, gold fell 0.58 percent to $1,703 an ounce.

U.S. Treasurys slid, pushing the yield on the 10-year note up 2 basis points to 0.657 percent.

European markets were higher across the board, with France’s CAC up 1.87 percent, Germany’s DAX higher by 1.66 percent and Britain’s FTSE gaining 1.63 percent.

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In Asia, Hong Kong’s Hang Seng added 1.08 percent after the government said it would allow bars, gyms, salons and other venues to reopen. China’s Shanghai Composite and Japan’s Nikkei remained closed for holiday.

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