Top News

Stocks Rally on Record Home Sales Amid Virus Woes: Markets Wrap

Stocks Rally on Record Home Sales Amid Virus Woes: Markets Wrap

(Bloomberg) — U.S. stocks climbed after better-than-estimated economic data offset concern over an increase coronavirus cases. The dollar advanced and Treasuries were little changed.

The S&P 500 rebounded from last week’s slump after data showed U.S. pending home sales posted a record gain, exceeding all forecasts. A surge in Boeing Co. lifted the Dow Jones Industrial Average after U.S. aviation regulators approved a critical set of test flights on the 737 Max. The tech-heavy Nasdaq extended gains as Facebook Inc. erased losses.

The unexpected improvement in economic data partly resulted from some states beginning to ease restrictions from coronavirus lockdowns. One of those states, Florida, reported a jump in its double-digit infection rate. Deaths from the virus surpassed 500,000 worldwide and confirmed cases exceeded 10 million as the World Health Organization warned that the worst is yet to come.

“The headline noise around Covid-19 will increase throughout the week, but remember the key is the economy,” wrote Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “If states are targeted on restrictions, then the increase in Covid cases will likely not cause a material market decline from current level, especially in the context of ongoing stimulus.”

U.S. companies are providing reason for hope that an earnings recession may be less severe than analysts expect. The signal comes from a profit-outlook index, compiled by Bloomberg and based on corporate revisions to forecasts.

For almost all of June, the index’s 20-day moving average has exceeded 50, showing more companies raised projections than lowered them. The average peaked June 17 at 63.4, the highest reading in the index’s 20-year history. Analysts estimate that second-quarter earnings for the S&P 500 will plunge 44% after a first-quarter decline of 18%.

Here are some key events coming up:

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testify before the House Financial Services Committee on Tuesday.The monthly U.S. jobs report will be released on Thursday.

These are some of the main moves in markets:


The S&P 500 rose 1.2% as of 1:30 p.m. New York time.The Dow Jones Industrial Average gained 1.9%.The Nasdaq Composite Index gained 0.9%.The Stoxx Europe 600 Index increased 0.4%.The MSCI Asia Pacific Index dipped 1.4%.


The Bloomberg Dollar Spot Index gained 0.2%.The euro increased 0.2% to $1.1237.The Japanese yen depreciated 0.5% to 107.71 per dollar.


The yield on 10-year Treasuries dipped less than one basis point to 0.64%.Germany’s 10-year yield rose one basis point to -0.47%.Britain’s 10-year yield declined one basis point to 0.163%.


The Bloomberg Commodity Index climbed 1.4%.West Texas Intermediate crude rose 1.9% to $39.21 a barrel.Gold increased 0.1% to $1,782.50 an ounce.” data-reactid=”40″>For more articles like this, please visit us at

Subscribe now to stay ahead with the most trusted business news source.” data-reactid=”41″>Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

View Article Origin Here

Related Articles

Back to top button