Asian Morning: US Stocks Up 1% on Hopeful Economy Reopening
Ming Lam April 27, 2020 8:39 PM
Investors were encouraged to see that some states started to ease stay-at-home restrictions and reopen businesses in phases amid slowing new coronavirus infections...
On Monday U.S. stocks advanced further. Investors were encouraged to see that some states started to ease stay-at-home restrictions and reopen businesses in phases amid slowing new coronavirus infections.
The Dow Jones Industrial Average charged 358 points higher (+1.5%) to 24,133, the S&P 500 rose 41 points (+1.5%) to 2,878, and the Nasdaq 100 was up 51 points (+0.6%) to 8,837.
S&P 500 Index: Daily Chart
Source: GAIN Capital, TradingView
All 11 major sectors of the S&P 500 closed higher, with Banks (+5.5%), Automobiles & Components (+3.87%) and Commercial & Professional Services (+3.36%) sectors performing the best.
Kohls Corp (KSS +17.7%), PVH Corp (PVH +15.2%), Nordstrom (JWN +13.6%) and Gap Inc (GPS +12.9%) were among the top gainers.
Coty (COTY -13.2%), Regeneron Pharmaceuticals (REGN -3.3%) and American Airlines (AAL -2.8%) were laggards.
On the technical side, about 23.0% (20.4% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 80.0% (71.7% in the prior session) were above their 20-day moving average.
Later today, official data on Wholesale Inventories for March (preliminary reading, -0.4% on month expected) and the Conference Board's Consumer Confidence Index for April (falling to 88.0 expected) will be released.
European stocks had a good day, with the Stoxx Europe 600 Index jumping 1.7%. Germany's DAX surged 3.1%, the U.K.'s FTSE 100 gained 1.6% and France's CAC bounced 2.6%.
U.S. Treasury prices turned downward as investors' risk appetite grew. The benchmark 10-year U.S. Treasury yield stepped up 6.1 basis points to 0.655%.
Spot gold fell 16 dollars or 1% to $1,710 an ounce.
Oil prices ended a four-day rally. United States Oil Fund (USO -14.8%), the world's largest oil-backed exchange-traded fund, announced plans to exit its long positions in the front-month WTI crude contract.
U.S. WTI crude oil futures plunged 25.0% to $12.78 a barrel, and Brent crude oil futures lost 6.8% to $19.99 a barrel.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.