Dow Ends Higher on Economic Recovery Hope - Nasdaq Up 7th Day

Stocks finish higher as Wall Street balances belief in an economic recovery against a rise in the number of new U.S. coronavirus cases.
Author:
Publish date:

Stocks finished higher Monday as Wall Street balanced belief in an economic recovery against a rise in the number of new U.S. coronavirus cases.

The Dow Jones Industrial Average finished up 152 points, or 0.59%, to 26,024 and the S&P 500 gained 0.66%. The Nasdaq Composite was up 1.11%, its seventh straight day of gains.

Microsoft  (MSFT) - Get Report and Apple  (AAPL) - Get Report each were up more than 2%.

The World Health Organization on Sunday reported more than 183,000 new global cases of the virus, the largest single-day increase by the group's count. The U.S. has 2.29 million coronavirus cases, according to Johns Hopkins University, and deaths have risen to more than 120,000.

Two members of a campaign advance team who attended President Donald Trump’s rally in Oklahoma on Saturday have tested positive for the coronavirus, the campaign said Monday, bringing the number of advance team members who have tested positive for the disease to eight.

An announcement from Apple that it was re-closing 11 stores in Florida, Arizona, North Carolina and South Carolina as infection numbers rose added to concerns that a resurgence in the coronavirus could lead renewed lockdowns of businesses, stalling a rebound in economic activity.

“The extent to which the Covid-19 pandemic slows economic recovery could increasingly come into focus," said Stephen Innes of AxiCorp. "These shifting dynamics are always challenging to equate."

However, some analysts believe that unprecedented measures by governments and central banks to stimulate economies stymied by the coronavirus pandemic will continue to prop up markets.

“The market doesn’t believe that we will see such draconian lockdowns even if there is a resurgence of the virus. The politics have moved on,” said James Athey, a money manager at Aberdeen Standard Investments. 

“Rightly or wrongly, there’s also a pretty widespread feeling that riskier assets won’t go down too far because the Federal Reserve won’t let them.”

China stopped importing poultry from U.S. meat producer Tyson Foods  (TSN) - Get Report over the weekend on fears of coronavirus contamination.

China's government said it was temporarily suspending all imports from Tyson's plant in Arkansas and would seize any products that already have arrived.

American Airlines  (AAL) - Get Report said it would raise $3.5 billion in new financing to strengthen its balance sheet as air travel remains severely curtailed during the coronavirus pandemic.

The airline said it would sell $750 million of shares and $750 million of senior convertible notes due in 2025. American also will seek to raise $1.5 billion in senior secured notes due in 2025 and said it would enter a $500 million term loan facility.

American said earlier this month that a slight pickup in domestic air travel was helping slow its daily cash burn rate to $40 million in June from more than $100 million in April.