Wall Street ends higher in Boeing’s bump, observed stimulus

NEW YORK (Reuters) – Wall Street stocks closed higher on Monday and the S&P 500 was poised to hit its biggest quarterly percentage gain since 1998 as investors expected a stimulus-backed economic rally, while a surge in Boeing’s actions helped propel blue. Chip Dow.

FILE PHOTO: Traders Wear Masks While Working on the Floor of the New York Stock Exchange as the Outbreak of Coronavirus Disease (COVID-19) Continues in the Manhattan District of New York, USA, May 28 2020. REUTERS / Lucas Jackson

The aircraft manufacturer (PROHIBITION) Shares rose more than 14% after a 737 MAX took off Monday from a Seattle-area airport on the first day of flight certification testing with the U.S. Federal Aviation Administration and test pilots. the company, a turning point in Boeing’s worst crisis.

Last week, a surge in virus infections in the southern and western states caused the S&P 500 to drop nearly 3%, but the threat of a deeper recession than previously feared has led investors to expect more. stimulus measures from the Federal Reserve or Congress.

But the sting of growing infections was affected by the price of the antiviral drug remdesivir, which Gilead Sciences has shown to alter the course of COVID-19 (GILD.O) The company also agreed to ship almost all of its supply of the drug to the United States over the next three months.

While the S&P 500 was up more than 17% in the quarter, the index fell slightly during the month as stocks have been affected by signs of progress in fighting the coronavirus and a recent resurgence in cases.

“For all the highs, for all the lows, volatility is going nowhere,” said Willie Delwiche, investment strategist at Baird in Milwaukee. “Maybe that’s the June lesson, these one-day moves seem impressive, but 20 of them come together and you have nothing.”

The Dow Jones Industrial Average .DJI rose 580.25 points, or 2.32%, to 25,595.8, the S&P 500 .SPX gained 44.19 points, or 1.47%, to 3,053.24, and the Nasdaq Composite .IXIC added 116.93 points, or 1.2%, to 9,874.15.

Each of the 11 main S&P sectors was in positive territory, led by industrial stocks .SPLRCI.

The benchmark S&P 500 .SPX index has recovered approximately 36% from its closing low of March 23. Monday’s gains pushed the index above its 200-day moving average, a level of technical support that had fallen with last week’s decline.

Monday’s data showed that previously owned home purchase contracts recovered in the highest amount recorded in May, suggesting that the property market was beginning to change. Later this week, investors will focus on employment and consumer confidence data.

Still, Wall Street was looking for more stimulus measures to shore up the economy. Morgan Stanley analysts said an additional injection of cash was critical to the bank’s thesis for a “V” shaped US economic recovery.

The BlackRock Investment Institute downgraded US equities to “neutral,” citing risks of fading fiscal stimulus, a widespread epidemic, as well as renewed trade tensions between the United States and China.

Although the House of Representatives passed a $ 3 trillion aid bill in May, the Republican-controlled Senate has not accepted the package and lawmakers are not expected to move on to another coronavirus bill until sometime in July.

Coty Inc (COTY.N) They jumped 13.4% after the company said it would buy a 20% stake in Kim Kardashian West’s makeup brand for $ 200 million.

Progressing problems outnumbered declining problems on the New York Stock Exchange by a ratio of 3.02 to 1; on Nasdaq, a ratio of 1.96 to 1 favored the overtakers.

The S&P 500 posted 1 new 52-week highs and no new lows; The Nasdaq Composite recorded 53 new highs and 17 new lows.

Volume on the US exchanges was 10.57 billion shares, compared to an average of 13.54 billion for the full session in the last 20 trading days.

Chuck Mikolajczak’s report in New York; Editing by Matthew Lewis

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