Stocks move into the red amid report Apple is reclosing stores in Florida and Arizona
- 19th June 2020
- Posted by: Hakeem
- Category: Stock
The report eased concerns about U.S.-China trade relations as the two countries exchange heated rhetoric regarding the coronavirus.
The Dow Jones Industrial Average traded 39 points higher, or 0.2%. The S&P 500 climbed 0.2% while the Nasdaq Composite rose 0.4% and briefly traded above 10,000. However, the major averages were well off their session highs. Trading could become increasingly volatile throughout the day ahead of the S&P 500′s first rebalancing of 2020.
Energy was the best-performing sector in the S&P 500 on Friday as oil prices rose more than 1%. The Energy Select Sector SPDR Fund (XLE) advanced 1%. Facebook and Amazon advanced 1.3% and 0.9%, respectively.
For the week, the major averages were on pace to post their fourth weekly gains in five. The Dow and S&P 500 were each up at least 3% week to date while the Nasdaq has risen 4.7%. Those gains came after a record surge in U.S. retail sales and the Federal Reserve announcing it will buy individual corporate bonds.
“Retail sales V-bound, employment V-bounds, equities V-bound and meanwhile central banks continue to underpin just about everyone and their mother. What is not to like?” said Andreas Steno Larsen, a strategist at Nordea Markets, in a note.
However, concerns of a resurgence in coronavirus cases has kept sentiment in check. Texas, California, Arizona and Florida all reported its biggest-ever one-day increase.
Some investors fear that a resurgence in coronavirus cases could lead to states retaking stricter quarantine measures to curb the spread, thus thwarting expectations of a smooth economic recovery. To be sure, those increases come as states ramp up testing.
“The rally of the past few months may have led to stocks reaching within striking distance of record highs, but investors are struggling to reconcile upward momentum and less optimistic messages about the months ahead,” said Lindsey Bell, chief investment strategist at Ally Invest. “That, along with concerns about a second wave of coronavirus and geopolitical tensions, has led to some serious indecisiveness.”
CNBC’s Yun Li contributed reporting.