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S&P Rises as Economic Data, Positive Vaccine Results Overshadow Rising Cases

Published 07/01/2020, 03:25 PM
Updated 07/01/2020, 04:22 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com - The S&P closed higher, led by real estate and utilities, as improving jobs and manufacturing data and positive coronavirus vaccine data boosted investor sentiment at a time when rising virus cases threaten the outlook.

The S&P 500 gained 0.5%, while the Nasdaq Composite added 0.95% to close at a record high, and the Dow Jones Industrial Average fell 0.3%.

Pfizer (NYSE:PFE) and Biontech Se (NASDAQ:BNTX) released online results of a vaccine that showed promise in boosting immune responses in healthy patients.The results have not yet been reviewed by a medical journal.

The positive early-stage results helped ease concerns about a spike in cases that has forced some states to stall reopening efforts.

Still, manufacturing and labor data continued to show signs the recovery remains on track.   

Private payrolls grew by 2.4 million in June, while May's figure was revised higher to 3 million, according to a report released Wednesday by ADP and Moody's (NYSE:MCO) Analytics. That missed economists' forecast for a rise of 3 million.

The private jobs data come ahead of the crucial nonfarm payroll report for June. Economists are forecasting that the economy generated 3 million jobs last month, but that "seems aggressive, and sets the bar very high," Jefferies (NYSE:JEF) said. "We see risks skewed to the downside."

On the manufacturing front, ISM manufacturing data  for June showed an uptick to 49.8, beating expectations of 49.6. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.

The sharp rebound in manufacturing following the slump in April and May was led by strong improvements in the new orders and production indexes and paves the way for a solid month in July. The path beyond will depend on the evolution of the coronavirus outbreak, Jefferies added.

Energy fell 2.5%, shrugging off rising oil prices as worries over crude demand weighed on sentiment despite data showing U.S. crude stockpiles fell by 7.2 million barrels last week.

Rising mega-cap tech stocks supported the broader market, led by Facebook (NASDAQ:FB) as the social media giant – taking steps to address recent concerns -- offered to meet with boycott organizers.

But Apple (NASDAQ:AAPL) was a notable exception to the climb in broader tech, after the iPhone maker said it would re-close more stores in seven states including Alabama, Georgia, Idaho, Louisiana, Nevada and Oklahoma, starting Thursday.

In other news, FedEx (NYSE:FDX) reported fiscal fourth-quarter results that beat on both the top and bottom lines, sending its shares 19% higher. 

Tesla (NASDAQ:TSLA), meanwhile, closed at a record ahead of its second-quarter delivery numbers, expected later this week.

Latest comments

Fake news. Only virus is can reliable to investors.
our glorious president said inhale some chlorine and UV light you useless doctors and scientists
the fear mongering left hanging onto ever thread. pre the CDC you have a 99.74% of living after getting Covid. yet facts aren't talked about. oh rioting is cool too, but if you want to live a normal life out your mask on lol
The authors should be tired of saying the sam bull everyday. On hope of, up and down because of what .. nothing just terminology trickery!!
It's a fake news on the vaccine, the virus has more mutations then Trump has in money, they have been working on one for ADS for decades and now in 5 months they've found one for covid!!! very fake news, just to push the markets up...
Agree... very effective way of manipulation.
Makert makets at work..
no, people just see through the intentional fearmongering and misrepresentation of data for ulterior political motives. COVID-1984 is more hype and falsification of initial death rates and will disappear on November 4, 2020
How can ever be determined  if any vaccines work if 99% o people don't get sick with covid 19 ?
COVID-1984 will be largely gone by the time a vaccine is developed that is effective. just a waste of money because of all the politically-motivated fearmongering
How many times in the last few weeks did we hear about vaccines results being positive?
Can't count them anymore
N times
2 crashes in a year is not uncommon at all, as a matter of fact, its pretty normal. Go back and check US stock market crashes from 1929. You will see that in each case, there were multiple crashes in the same year
Huge crash is coming.
Great news ..you'll want to be all in if not already ..before the second rocket boost comes out. Lots of green every day as each day the economy continues to grow back to what was...don't miss out again. Only a matter of time all rockets ignite and a vaccine is available for all..great great news!!
You don’t think there will be a second crash before the boom?
The current run is parabolic, what happens when the economy gets to where it was? Do we then have an inverse parabola?
Soon 100k cases per day of covid and maybe even over 1 million in autumn. The vaccine will arrive when all people in US will be infected.
if that happens, then why even wear a mask?
Until manufacturing gets over 50, it's still in contraction. After you shake out all the numbers the U.S. still lost at least 4 million jobs in June. Not as robust as this bullish report would dictate.
Just let it crash already we are waisting time... just let the new economic cycle begin
Hocus Pocus slight of hand.
about time they start to pump out article on more positive news on vaccine. i was wondering how they're going to counter all the rise in covid cases. LOL
Simply big crash, no only stock exchanges..real economic has very big falls.
 LOL, Given how the market has reacted in the past 4 months, it's really hard to bet against the overall stock market under current arrangement. there is probably so much dirty arrangement behind the scene holding up the entire market. you can fight against a overbought market but you can't fight against the fed, treasury, and banks when they're on the same side.
we are fast tracking a vacine with no idea as to its long term effects. we have had riots that the costs of recovery hasnt been discussed yet. unemployment is still high. on top of this the states are slowly backtracking their economies. lets just forget the trillions of debt we have added from the latest round of qe. this economy is being held together with baling wire and bubble gum.
Accurate! People gotta step back and look at the big picture here...
Just excuses to jerk the market around.
utterly absurd, everything in this article. Looks like they are covering Fed and Banks market control......
this what they do...Create artificial window dressing for the dirty FED stimulus pump..criminal really!
The data that is never accurate. The vaccine that never comes.
This is part of the game
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