Wall Street climbs on healthcare, tech push

By Caroline Valetkevitch (Reuters) - U.S. stocks rose again on Thursday, boosted by healthcare and technology stocks, as investors continued to bet on a swift recovery from the coronavirus-driven economic slump. The Dow Jones index got a lift from a 1.6% gain in Boeing Co shares after the planemaker said it had resumed production of its 737 MAX passenger jet at its Washington state plant, although at a 'low rate.' The healthcare and technology sectors gave the S&P 500 its biggest boost

Reuters May 29, 2020 02:06:09 IST
Wall Street climbs on healthcare, tech push

Wall Street climbs on healthcare tech push

By Caroline Valetkevitch

(Reuters) - U.S. stocks rose again on Thursday, boosted by healthcare and technology stocks, as investors continued to bet on a swift recovery from the coronavirus -driven economic slump.

The Dow Jones index got a lift from a 1.6% gain in Boeing Co shares after the planemaker said it had resumed production of its 737 MAX passenger jet at its Washington state plant, although at a "low rate."

The healthcare <.SPXHC> and technology <.SPLRCT> sectors gave the S&P 500 its biggest boost.

The S&P 500 <.SPX> is up about 38% from the low hit in March as a restart in business activity after weeks of shutdown and massive amounts of stimulus measures to support the economy have driven hopes of a strong recovery.

"Because of the reopening of the economy, I think investors are feeling more optimistic that we will end up with a V-shaped economic recovery," said Sam Stovall, chief investment strategist at CFRA Research in New York, saying that helped boost financials shares recently and other sectors across the board.

"Just in the past week, what we're seeing is that all sectors of all styles and sizes are in positive territory," Stovall said.

The S&P financial index <.SPSY> was down on Thursday but is up more than 9% for the week so far.

The Dow Jones Industrial Average <.DJI> rose 146.97 points, or 0.58%, to 25,695.24, the S&P 500 <.SPX> gained 26.44 points, or 0.87%, to 3,062.57 and the Nasdaq Composite <.IXIC> added 73.06 points, or 0.78%, to 9,485.42.

Labor Department data on Thursday showed the number of Americans filing for unemployment benefits held above 2 million for a 10th straight week, though initial jobless claims have declined steadily since hitting a record high in mid-March.

However, worsening ties between the United States and China in recent weeks and fears of a second wave of coronavirus infection pose a threat to the stock market's strong recovery from its steep selloff, according to analysts.

Investors were keeping a close watch on social media platforms Twitter Inc and Facebook Inc ahead of an expected order from President Donald Trump that would review a law that has long protected the internet companies from being responsible for the material posted by their users.

Discount retailer Dollar Tree Inc jumped 10.4% after reporting better-than-expected quarterly sales and profit as consumers stockpiled groceries and other essentials as the novel coronavirus outbreak spread.

Advancing issues outnumbered declining ones on the NYSE by a 1.38-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored decliners.

The S&P 500 posted 17 new 52-week highs and no new lows; the Nasdaq Composite recorded 64 new highs and seven new lows.

(Reporting by Caroline Valetkevitch in New York; Additional reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Leslie Adler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.