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Stock Market News for June 4, 2020

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Benchmarks ended in the green on Wednesday on signs that the economy is close to bottoming-out. Both jobs and service data have shown signs of improvement despite the onslaught of coronavirus and civil unrest in American cities. Nonetheless, Wednesday’s gains in particular helped the broader S&P 500 notch its best 50-day trading performance.

The Dow Jones Industrial Average (DJI) gained 527.24 points, or 2.1%, to close at 26,269.89 and the S&P 500 rose 42.05 points, or 1.4% to close at of 3,112.87. While, the Nasdaq Composite Index closed at 9,682.91, adding 74.54 points, or 0.8%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.4%, to close at 25.66. Advancing issues outnumbered declining ones for 3.62-to-1 ratio on the NYSE and a 2.33-to-1 ratio on the Nasdaq favored advancers.

How Did the Benchmarks Perform?

Ten of the 11 major sectors in the S&P 500 ended in the positive territory, while the healthcare sectors ended 0.2% lower on Wednesday. So far in June, the S&P 500 has added more than 2%, gaining more than 42% since its coronavirus pandemic low in March.

Wednesday’s gains have now led the Dow to a three-day winning streak, while the S&P 500 marked its first four-day winning streak since early February this year.

Signs of Recovery Help Markets Rally

Some encouraging news on the economic front bolstered investors’ sentiment. On Wednesday, ADP and Moody’s Analytics reported that private sector lost another 2.76 million jobs in May. Decline in private payroll was lower than the economist’s estimate of 8.75 million and April’s decrease of 20.2 million, a tell-tale sign that job losses minimized last month.

Additionally, the pace of contraction in America’s service sector was faster than expected in May. The Institute for Supply Management (ISM) reported that its non-manufacturing activity index rose to 45.4 in May from 41.8 in the previous month. The April’s figure was a 11-year low and the first contraction since December 2009Nevertheless, May’s figure beat the consensus estimate of 44.7.

On Jun 4, shares of American Airlines Group Inc. (AAL - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and United Airlines Holdings, Inc. (UAL - Free Report) rose 5.6%, 7.8% and 12.5%, respectively, as restart of commercial flights on account of economy reopening boosted the aviation industry.

American Airlines, Delta Air Lines and United Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

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Delta Air Lines, Inc. (DAL) - free report >>

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American Airlines Group Inc. (AAL) - free report >>

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