October 5 Market Update
The S&P 500 surged 1.4 percent in afternoon trading in New York, climbing to 3,394. The NASDAQ climbed 198 points to 11,274 while the Dow Jones gained 152 points to 28,035.
Equities built on the strength that appeared Friday afternoon in the wake of news from Washington that President Trump had been hospitalized, causing speculation that additional economic stimulus might be coming sooner than expected.
Market observers now believe the likelihood of a contested presidential election next month is less likely.
Regal Entertainment Group will suspend operations at its more than 500 locations as big budget Hollywood films continue to be postponed.
The U.S. services sector gained momentum in September according surveys by the Institute for Supply Management and IHS Markit.
New York City is closing schools in neighborhoods seeing surges in coronavirus cases.
Regeneron Pharmaceuticals shares surged 7% after its experimental coronavirus treatment was part of a cocktail used to treat President Trump.
Yields on 10-year Treasury notes moved markedly higher to 0.751%.
Bristol Myers Squibb will buy MyoKardia Inc. in a $13 billion deal that will expand Bristol’s lineup of heart drugs.
The VIX index, the market’s “fear gauge,” rose 3% to 28.4.
Any opinions are those of Burke Koonce and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Burke Koonce is a financial advisor at Raymond James & Associates, Inc., member New York Stock Exchange, member SIPC. www.raymondjames.com/burkekoonce