Asian Morning: US Stocks Up 1% on Hopeful Economy Reopening
Ming Lam April 28, 2020 1:39 AM
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.
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