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Stock Market News for June 3, 2020

Benchmarks closed higher on Tuesday as investors looked past civil unrest across major cities and focused on easing of coronavirus-led lockdown and signs of economic recovery.

The Dow Jones Industrial Average (DJI) gained 267.63 points, or 1.1%, to close at 25,742.65 and the S&P 500 rose 25.09 points, or 0.8% to close at of 3,080.82. While, the Nasdaq Composite Index closed at 9,608.37, adding 56.33 points, or 0.6%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.9%, to close at 26.84. Advancing issues outnumbered declining ones for 2.60-to-1 ratio on the NYSE and a 1.52-to-1 ratio on the Nasdaq favored advancers.

How Did the Benchmarks Perform?

All the 11 major sectors in the S&P 500 ended in the positive territory on Tuesday, with the energy sector leading the rally by adding 2.7%. Tuesday’s gains put the broader index up more than 40% from its late-March intraday low. The financials and industrials sectors also boosted the S&P 500 and the Dow, while tech shares boosted the Nasdaq.

Overall, the S&P index recorded 11 new 52-week highs and no new lows. Meanwhile, Nasdaq recorded 70 new highs and 4 new lows.

Investors Overlook Civil Unrest

Green shoots of economic rebound has helped fuel investor optimism. Additionally massive stimulus packages from Capitol Hill and the U.S. Federal Reserve gave a boost to the economy that is preparing to reopen after months of coronavirus-led lockdown.

Companies tied to reopening of states outperformed on Tuesday. Shares of Citigroup Inc. C, Wells Fargo & Company WFC, The Gap, Inc. GPS and Southwest Airlines Co. LUV rose 2.8%, 1.1%, 7.7% and 2.6% respectively, yesterday.

Citigroup, The Gap and Southwest Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On the trade front, State-owned Chinese firms have bought at least three cargoes of U.S. soybeans on Monday, even as sources in China reported that the Chinese government had asked them to halt purchases as a counter measure to the United States plan to eliminate special treatment for Hong Kong. The purchases accounts to a total of 180,000 tons of the oilseed, which are due for shipment in October or November. The report helped lift investor’s sentiment.

Meanwhile, investors overlooked civil unrest across 40 cities. The New York City has imposed a curfew until Jun 7 to curb protests as it could lead to further spread of the coronavirus. Similar curfews were instituted in cities across the country in an effort to dissolve mass gatherings. President Donald Trump has threatened to deploy additional military troops in areas of unrest for peacekeeping.

Stocks that Made Headline

Lyft Improves Q2 View on 26% Rise in May Rides, Stock Up

Lyft’s LYFT shares rose 4.7% in after-hours trading on Jun 2, following news that the company witnessed a substantial increase in ride volumes in May from April. (Read More)

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Southwest Airlines Co. (LUV) : Free Stock Analysis Report
 
Citigroup Inc. (C) : Free Stock Analysis Report
 
The Gap, Inc. (GPS) : Free Stock Analysis Report
 
Wells Fargo Company (WFC) : Free Stock Analysis Report
 
Lyft, Inc. (LYFT) : Free Stock Analysis Report
 
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