Major stock market indexes jumped on Monday as data showing unexpected growth in the U.S. services sector last month and gains in the Chinese stock market helped investors look past a rise in COVID-19 cases domestically, plus more in today’s Closing Bell on Money & Markets.
The Top Story
The Institute of Supply Management’s non-manufacturing activity index jumped to 57.1 in June — close to pre-pandemic levels, but the recent surge in coronavirus cases in the U.S. has put a damper on the emerging recovery.
Early Monday morning, investors got a boost as the Chinese stock market climbed more than 5% on liquidity and cheap funding which helped calm fears of a slowdown in global business activity.
The S&P 500 rose for the fifth day, unfazed by the record surge in coronavirus cases in 16 states that could threaten reopening plans and throw a wrench in a rapid recovery of the U.S. economy.
Ten of the 11 major S&P 500 sectors were trading higher in the afternoon, with technology providing the biggest boost to the benchmark index. Online retail giant Amazon.com Inc. (Nasdaq: AMZN) crossed over the $3,000 mark for the first time and was the top support for both the S&P and the Nasdaq.
The Dow Jones rose 1.78%. The S&P 500 moved up 1.59%. The Nasdaq rose 2.21% and the Russell 2000 jumped 0.77%.
Stock Market Update: Closing Bell*
S&P 500: 3,179 (+1.59%)
DOW: 26,287 (+1.78%)
NASDAQ: 10,433 (+2.21%)
RUSSELL 2000: 1,442 (+0.77%)
VIX: 27.94 (+0.94%)
GOLD: $1,795.60 (+0.31%)
BITCOIN: $9,290.56 (+2.92%)
U.S. 10-YEAR YIELD: 0.68% (+0.01)
* as of 4:15 p.m.
A Big Win
In this morning’s Opening Bell, we told you to be on the lookout for Nio Inc. (NYSE: NIO) after the company reported preliminary quarterly deliveries of 10,331 vehicles — a 191% increase year over year. Shares of Nio rose 22.7%.
We also mentioned watching Berkshire Hathaway Inc. (NYSE: BRK.B) after the company announced a $10 billion acquisition of Dominion Energy Inc’s (NYSE: D) natural gas assets. The acquisition pushed Berkshire Hathaway shares up 2.2% in afternoon trading.
Finally, we told you about Tesla Inc. (Nasdaq: TSLA) after analysts at JPMorgan & Chase Co. (NYSE: JPM) raised its price target on the electric car manufacturer. Shares of Tesla were up 13.5%.
Golden Nuggets
Gold prices edged closer to the 8-year high hit last week as a spike in coronavirus cases kept safe haven demand elevated.
In the first four days of July, 15 states reported increases in new COVID-19 cases, while cases continued to rise in countries including India, Australia and Mexico.
Spot gold moved 0.7% higher to over $1,786 an ounce. Non-yielding bullion has jumped more than 17.7% so far this year, helped by stimulus measures and interest rate cuts by central banks.
Gold futures rose 0.3% to trade at $1,795.60 an ounce while silver futures were 1.6% higher at $18.62 an ounce.
Platinum was up 1.2% to $841.50 while palladium was 1.2% higher to trade at $1,950 an ounce.
Cannabis Corner
The medical marijuana market in Florida has grown by 18% from the first quarter of 2020 to the second quarter.
Publicly owned companies are leading the charge of the medical cannabis industry in a state that only four years ago approved its use, according to a report from New Cannabis Ventures.
Trulieve Cannabis Corp. (Over-the-Counter: TCNNF) has 20% of all the dispensaries in the state with 51 of the 255 locations, while Liberty Health Sciences Inc. (Over-the-Counter: LHSIF) owns another 25 dispensaries.
Private Jet Companies Get $200 Million in PPP Funds
Government data released on Monday shows that major private jet companies received more than $200 million in government funding under the Paycheck Protection Program.
According to CNBC, OneSky Flight received $84 million while Wheels Up picked up $74 million.
The companies said the grants helped them keep their employees during the coronavirus pandemic and support other jobs and contractors. Both Wheels Up and OneSky kept all of their workers during the virus outbreak.
Despite receiving criticism that they only cater to the wealthy and large corporations; many private jet companies say they are now running at between 70% and 80% of their pre-COVID-19 business.
Today’s Big Winners:
S&P 500: Freeport McMoRan Inc. (NYSE: FCX) +10.9%
Nasdaq: Tesla Inc. (Nasdaq: TSLA) +13.5%
Dow: Goldman Sachs Group Inc. (NYSE: GS) +5%
Today’s Big Losers:
S&P 500: Oneok Inc. (NYSE: OKE) -12%
Nasdaq: Dollar Tree Inc. (Nasdaq: DLTR) -4.1%
Dow: Walmart Inc. (NYSE: WMT) -0.2%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.