The stock market powered ahead Wednesday amid more concrete steps to bring America out of the great shut in.
The Dow settled above the 25,000 mark for the first time since early March.
It was the S&P 500's first close above the key 3,000 level since March 5th.
And the Nasdaq turned it around late in the day to also finish higher.
Plans for recreational re-openings are fueling optimism about an economic comeback... But the real catalyst for the market's recent rebound are the pledges by global central banks to do whatever it takes to prop up their economies, says Spartan Capital Securities chief market economist Peter Cardillo.
"The European Union proposed a $821 billion stimulus package which would be a unifying bond by the way and of course the Japanese are preparing to stimulate with massive amounts of money, and of course here in the States, and that's the reason why we have a stock market that's defying the fundamentals at this time." Investors, however believe the prospects for the economy are improving.... The Las Vegas strip has been given the green light by Nevada's governor to reopen next week... And Walt Disney announced plans to re-open Florida's Disney World in July... With states relaxing shelter-in-place orders, investors bet there is pent up consumer demand for shopping.
Shares of retailers closed during the shutdown rallied the most.
Business Insider reports that banks' and tech giants' earnings largely impressed Wall Street. Bank of America says discount stores are set to post similarly positive results, according to Bank of America. BoA analysts expect the sector's second-quarter figures to hold strong thanks to rising food sales and improvement in general merchandise revenue. Thanks to momentum in higher-profit categories and successful online operations Walmart, Target, and Dollar Tree are in good positions.
Wall Street ended higher after a choppy session on Tuesday, but they were capped by declines in AIG and Microsoft. As Fred Katayama reports, Disney shares shot higher after its adjusted profit handily beat expectations.
Wall Street analysts on Wednesday weighed in on AMC Theatres' historic agreement with Universal Pictures that will allow the studio's movies to be made available on premium video-on-demand after just 17 days of play in cinemas.
Credit: The Hollywood Reporter Duration: 01:27Published
The opposition in Belarus rejected official election results handing President Alexander Lukashenko a landslide re-election victory on Monday, saying the poll was rigged and that talks needed to begin on a peaceful transfer of power. Emer McCarthy reports.
The Dow jumped 1%, the S&P 500 inched up and the Nasdaq closed lower Monday as investors extended a rotation into value stocks from heavyweight tech-related names while awaiting news on progress in a U.S. fiscal support bill. Fred Katayama reports.
On Friday, Goldman Sachs lifted its 2020 S&P 500 earnings-per-share estimate. The move comes after better-than-expected second-quarter results. Business Insider reports that Goldman expects 2020 S&P 500 EPS of $130, from $115. That's about 21% lower than 2019. Goldman also thinks S&P 500 earnings will surge 30%, to $170 per share in 2021. The estimate is tied to Goldman's economic growth outlook.
Bernstein analyst Tony Sacconaghi says Tesla shares are far too expensive to recommend after more than tripling in 2020. The firm lowered its Tesla stock rating to "underperform" from "market perform" on Tuesday. It maintained a $900 price target, implying that shares will tumble 42% over the next year. Tesla recently beat earnings and crept closer to inclusion in the S&P 500. Sacconaghi said its valuation "is mind-boggling," the analyst wrote.
Exencial Wealth Advisors' David Yepez expects another profitable quarter from Tesla Wednesday that could clear the way for it to join the S&P 500. He also tells Reuters' Fred Katayama investors should snap up shares of Akamai and Sanofi on a market pullback.
The Nasdaq jumped more than 1% on Friday, powered by strong earnings from some of the largest U.S. companies, but the Dow and S&P finished with smaller gains as uncertainty about the government's next round of coronavirus aid kept economic worries on the radar. Fred Katayama reports.
The S&P 500 and the Nasdaq finished slightly higher on Friday but the Dow closed with a loss as investors kept an eye on record new coronavirus cases in the U.S. Conway G. Gittens wraps up the trading action.
New York (CNN Business) Kanye West's threat to walk away from his fashion company's fledgling partnership with the Gap has sent shares sharply lower. Videos taken at the event show the rapper criticizing Gap and Adidas, another apparel company his Yeezy brand partnered with. Gap, which has been struggling lately, announced a 10-year partnership with Yeezy last month for a new line of clothes that are "modern, elevated basics for men, women and kids at accessible price points" due out next year.
Kanye West's Yeezy brand is partnering with Gap to create a new clothing line. Business Insider says the line will be called Yeezy Gap. The new collection is for men, women, and children. It will be designed by West and the Yeezy team. Gap did not share the financial details of the deal. It said that Yeezy would earn royalties and potential equity related to sales results through this partnership.
JPMorgan Chase, Citigroup and Wells Fargo collectively set aside nearly $26 billion for potential loan losses. As Fred Katayama reports, quarterly profit at JPMorgan and Citi tumbled while Wells Fargo swung to a loss.
Business Insider reports that Macy's is laying off about 3,900 corporate jobs. The company said it expects the job cuts to lead to about $365 million in savings for the rest of fiscal year 2020. It estimates the move will save $630 million in 2021. "We know that we will be a smaller company for the foreseeable future. "Our cost base will continue to reflect that moving forward," CEO Jeff Gennette said in a statement.
On Wednesday, Bank of America analysts downgraded Apple, Inc. To BoA, Apple's surging stock price doesn't present the strong risk-reward profile it once did. BoA downgraded Apple to "neutral" in a note. It said Apple's recent rally to record highs faces too many risks to recommend buying more shares. Business Insider said Apple's future performance could slip if 5G iPhones miss expectations or sell worse than estimated. Services may also shrink after several quarters of "unsustainable" growth.
Warren Buffett's investment in Apple has tripled in value to north of $100 billion. Buffett's Berkshire Hathaway spent about $35 billion to build the 5.7% stake in Apple The 10% rise in Apple's stock price on Friday boosted its value to about $104 billion. Business Insider reports that Berkshire's Apple position is now worth more than four times its second-largest holding, Bank of America. Industry analysts call Buffett's investment into Apple "one of the best investments ever."
Kanye West has applied for a trademark on Yeezy-branded cosmetics. According to Business Insider the filing includes provisions for makeups, creams, hair gels, and even scented pine cones. Companies often file trademarks to protect intellectual property without actually selling products. The move has sparked speculation of a possible Yeezy beauty business. The Yeezy sneaker brand was valued by Bank of America to be worth up to $3 billion on its own in 2019.
Kanye West has applied for a trademark on Yeezy-branded cosmetics. Companies often file trademarks to protect intellectual property without actually selling products. The move has sparked speculation of a possible Yeezy beauty business. The Yeezy sneaker brand was valued by Bank of America to be worth up to $3 billion in 2019. The filings dated June 2nd elaborated on plans for makeup, body glitter, skin creams, and hair products.