The stock market jumped Tuesday, blasting the S&P 500 past the 3,000-point mark as optimism about developing a COVID-19 vaccine helped investors overlook new U.S.-China tensions, plus more in today’s Closing Bell on Money & Markets.
The Top Story
The benchmark S&P 500 crossed above 3,000 for the first time since March 5 but came down a bit off session highs after White House adviser Larry Kudlow said President Donald Trump was “so miffed with China on virus and other matters that the trade deal is not as important to him as it once was.”
Still, all 11 S&P sector indexes were higher, with cyclical financials up 5.7% and industrials rising 4.7%.
The S&P 500 has risen about 37% from its March lows on Federal Reserve and government stimulus at a time when the U.S. economy is seeing its biggest job losses since the Great Depression of the 1930s. It is now about 11% below its February record high.
With macroeconomic data pointing at a deep recession, analysts warned that financial markets could be betting on too fast a recovery, and reports show the rally isn’t being led by the so-called “smart money.”
Beaten-down travel stocks soared, with the S&P 1500 airlines index up about 13.4%. Cruise operators including Carnival Corp. (NYSE: CCL) were up more than 13.7%.
The New York Stock Exchange on Tuesday partially reopened its trading floors at the iconic 11 Wall Street building, which had been closed since March 23.
As of 3 p.m. EDT, the Dow Jones was up 2.7%. The S&P 500 was 1.8% higher and the Nasdaq was up by 0.8%.
Stock Market Update: Closing Bell*
S&P 500: 3,009 (+1.82%)
DOW: 25,114 (+2.66%)
NASDAQ: 9,396 (+0.77%)
GOLD: $1,705 (-1.72%)
BITCOIN: $8,799.94 (-1.16%)
U.S. 10-YEAR YIELD: 0.69% (+0.04%)
*- as of 3:15 p.m.
A Big Win
In this morning’s Opening Bell, we told you to watch Sanofy SA (Nasdaq: SNY) and Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) after news was reported that Sanofy is selling its stake in Regeneron — valued at about $13 billion. Shares of Sanofy were up 0.6% while shares of Regeneron fell 5.8%.
Shares of Novavax Inc. (Nasdaq: NVAX) jumped more than 6% as the Maryland-based vaccine development company said it is starting the first phase of its COVID-19 vaccine trial. The company said it’s pushing ahead with the trial in the U.S., with other counties to follow.
Finally, we told you about AutoZone Inc. (NYSE: AZO), which beat Wall Street expectations for quarterly earnings by $0.59 per share. The company also beat revenue expectations. Shares of AutoZone were up 1.8%.
Golden Nuggets
As coronavirus restrictions eased around the world, the price of most precious metals fell sharply.
Gold, a safe store of value during political and financial uncertainty, climbed to its highest price since October 2012 last week, driven by monetary and fiscal stimulus, recession fears and U.S.-China tensions.
Mining output in South Africa, the world’s biggest producer of platinum and a leading producer of gold, could fall by 8% to 10% this year due to the pandemic, according to Minerals Council CEO Roger Baxter.
Futures contracts for gold fell by 1.7% to trade at $1,705 an ounce. Silver futures dropped 0.5% to $17.60 an ounce.
Platinum was 1.6% lower to $871 an ounce while palladium was 1% higher at $1,997 an ounce.
Cannabis Corner
Multistate marijuana company Cresco Labs said it plans to acquire four Ohio medical marijuana dispensaries operated by Verdant Creations.
According to Marijuana Business Daily, Cresco will pay $375,000 cash for each store as well as $500,000 of the company’s subordinate voting shares. If approved by state regulators, the acquisition will give Cresco Labs five dispensaries in the state, the maximum allowed by law.
Apple Plans on Reopening 100 More Stores This Week
With a focus on curbside delivery, Apple Inc. (Nasdaq: AAPL) said it plans to reopen 100 stores in 21 states, according to CNBC.
By the end of the week, Apple said it hopes to have around 130 of its 271 Apple stores in the U.S. reopened. The company operates 510 stores around the world.
Apple closed all of its stores in March in response to the COVID-19 pandemic.
Today’s Big Winners:
(as of 3:15 p.m. EDT)
S&P 500: Alliance Data Systems Corp. (NYSE: ADS) +17.8%
Nasdaq: United Airlines Holdings Inc. (Nasdaq: UAL) +16.1%
Dow: Goldman Sachs Group Inc. (NYSE: GS) +8.6%
Today’s Big Losers:
(as of 3:15 p.m. EDT)
S&P 500: Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) -5.9%
Nasdaq: Take-Two Interactive Software Inc. (Nasdaq: TTWO) -5.8%
Dow: Microsoft Corp. (Nasdaq: MSFT) -0.6%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.