Wall Street’s main stock market indexes pushed higher as a jump in oil prices propped up the energy sector while countries started reopening parts of their economies during the coronavirus lockdown, plus more in today’s Closing Bell on Money & Markets.
The Top Story
All the major S&P 500 sub-indexes were trading higher, but the energy sector finished only 0.2% higher after gains of more than 2% earlier in the day.
West Texas Intermediate crude oil futures climbed 20% to $24.46 per barrel. International benchmark Brent crude futures jumped 12.5% to trade at $30.54 per barrel.
Health care stocks were also in the spotlight with Pfizer Inc. (NYSE: PFE) up 2.4% after it announced a venture with its German partner had started delivering doses of its experimental coronavirus vaccine for human testing in the United States.
UPDATE: Together with @BioNTech_Group, we are proud to announce that the first participants have been dosed in our U.S. #ClinicalTrial Program for a potential #COVID19 #vaccine. Read more:
— Pfizer Inc. (@pfizer) May 5, 2020
Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) shares gained 6% after the company said its experimental antibody cocktail for COVID-19 may be available for use by the end of summer.
Market-leading growth stocks such as Microsoft Corp. (Nasdaq: MSFT), Amazon.com Inc. (Nasdaq: AMZN) and Apple Inc. (Nasdaq: AAPL) provided a nice boost for the second straight second day. Microsoft and Apple moved as much as 2.3% higher.
Data on Tuesday showed the domestic services sector recorded its first contraction in nearly 10 1/2 years (see below). Investors are now bracing for data on the labor market through the week with expectations of another staggering initial jobless claims reading on Wednesday and nonfarm payrolls for the month of April due Friday.
The Dow Jones closed 0.6% higher. The S&P 500 rose 0.9%, and the Nasdaq moved up 1.1%.
Stock Market Update: Closing Bell*
S&P 500: 2,868 (+0.9%)
DOW: 23,883 (+0.6%)
NASDAQ: 8,809 (+1.1%)
GOLD: $1,715.70 (+0.1%)
BITCOIN: $8,942.98 (+0.7%)
U.S. 10-YEAR YIELD: 0.65% (+0.02)
*- as of 4:15 p.m.
A Big Win
In this morning’s Opening Bell, we mentioned watching L Brands Inc. (NYSE: LB) after the company pulled out of a deal to sell and privatize its Victoria’s Secret business. Shares of L Brands dropped 3.5%.
We also mentioned keeping an eye on Apple Inc. (Nasdaq: AAPL) after it was reported the company can borrow money cheaply on the bond market. The money would be used to fund stock buybacks and dividend payments. Apple shares were up 1.5%.
Finally, we talked about Skyworks Solutions Inc. (Nasdaq: SWKS). The company beat Wall Street expectations for revenue and earnings but dropped its guidance for the following quarter, a common trend in this earnings season. Shares of Skyworks pushed 5.1% higher.
Golden Nuggets
Gold futures stayed relatively flat most of Tuesday as investors were upbeat, pushing equities higher.
Futures contracts for gold were up 0.1% to trade at $1,715.70 an ounce. Silver futures jumped 2.2% to $15.12 an ounce.
Platinum moved 0.7% higher to trade at $784 an ounce, while palladium tumbled 3.1% to $1,778.80 an ounce.
Cannabis Corner
Cannabis operator Ethos Cannabis said it reached a deal with 4Front Ventures to purchase the rights to seven medical marijuana dispensaries in Maryland and Pennsylvania.
The terms of the deal were not disclosed, according to Marijuana Business Daily.
The acquisition comes after Arizona-based 4Front said it made $18 million from the sale of its stake of cannabis retail licenses in Maryland and Pennsylvania.
US Trade Deficit Deepens as Service Sector Contracts
The U.S. trade deficit jumped 11.6% — the largest rise since December 2018 — to $44.4 billion, according to the Department of Commerce.
Additionally, the spread of the coronavirus pushed the services sector into contraction for the first time in more than a decade.
The figures are an indication that the economy is diving deeper into a recession. That number will likely rise as parts of the country reopen following the COVID-19 lockdown.
Today’s Big Winners
IPG Photonics Corp. (Nasdaq: IPGP) +21%
Regeneron Pharmaceuticals Inc. (Nasdaq: REGN) +6%
Chevron Corp. (NYSE: CVX) +1.6%
Today’s Big Losers
Norwegian Cruise Lines Holdings Ltd. (NYSE: NCLH) -22.6%
Alexion Pharmaceuticals Inc. (Nasdaq: ALXN) -5.4%
Boeing Co. (NYSE: BA) -4.6%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.