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TOPLINE
The stock market opened higher on Tuesday thanks to increased optimism on Wall Street about reopening the U.S. economy as some states summarizes business activity and relax quarantine orders.
The fearless girl statue wearing a mask in front of the New York Stock Exchange.
KEY FACTS
The Dow Jones Industrial Average was up 1.5%, over 300 points, at Tuesday’s open, while the S&P 500 rose 1.4% and the Nasdaq Composite 1%.
Stocks got a boost from a partial reopening of the economy, with states like Alaska, Georgia, South Carolina, Tennessee and Texas all taking steps this week to let some businesses resume operations.
As the first wave of consumers emerges from coronavirus quarantine, that should help some companies that have been hard-hit during the pandemic.
Stocks like Wynn Resorts, Simon Property Group and Kohl’s, for example, all gained more than 4% on Tuesday morning, as they would benefit from a partial reopening.
Shares of 3M, the lead producer of N95 masks, rose over 5% after the company reported better-than-expected first quarter earnings, boosted by surging sales of personal safety equipment.
Oil prices have rebounded somewhat, following another big sell-off of nearly 25% on Monday. Earlier on Tuesday, WTI futures for June fell more than 20%, but have since wall back losses, now only down 2%.
Crucial quote
“The seeds of this rally are now more than a month old and stocks are resting precariously on fumes of recycled news (each incremental state announcing reopening plans isn’t a fresh reason to buy),” according to Adam Crisafulli, founder of Vital Knowledge . “As a result, while it’s a lot easier said than done, this is a market that investors should be FADING, not chasing.”
Key background
The Dow rose more than 350 points on Monday, closing above 24,000 for the first time since April 17, while the S&P 500 and Nasdaq
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