NEW YORK (Reuters) – Wall Street closed higher and the Nasdaq hit an all-time high on Thursday.
FILE PHOTO: Traders wear masks while working on the floor of the New York Stock Exchange during the outbreak of coronavirus disease (COVID-1
All three major US stock averages rose, with the S&P 500 benchmark posting its fourth consecutive daily gain.
Massive impulses and hopes of a rapid economic recovery have brought the S & P 500 and the Dow to 7.6% and 12.6% below their record highs reached in February.
The indices saw strong gains this week.
The US economy created 4.8 million jobs in June. USNFAR = ECI, according to the Department of Labor, 1.8 million more than expected by analysts, setting a second record in a row.
Due to massive new hires, the USUNR = ECI unemployment rate fell to 11.1%. [nL1N2E82LC]
“The week’s economic data had a lot to offer,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “And there is still talk of Washington giving further impetus after the return from the July 4th break.”
Despite record wage increases in May and June, the labor market has still recovered a fraction of the 22 million jobs lost through the March-April slump.
The recovery in the US economy, now in the sixth month of the recession, could stall as new cases of COVID-19 hit record highs and several states were hit hardest by the revival, or plans to reopen their economies were halted or undone. [nL1N2E81ES]
On Thursday, Florida reported a record 10,000 new cases, worse than any European country reported at the peak of its outbreaks. [nL8N2E94GS]
“With the tops (in new COVID-19 cases), we’ve seen the larger states – Texas, California, and Florida. These states have taken steps to cut back on their reopening plans,” added Nolte. “And that will slow down overall growth and consumer spending in these regions.”
In the coming weeks, market participants will focus on the second quarter reporting season. Overall, analysts now expect S&P profits to decline 43.1% as companies struggled with falling demand and disrupted supply chains.
The Dow Jones Industrial Average .DJI rose 92.39 points or 0.36% to 25,827.36, the S & P 500 .SPX rose 14.15 points or 0.45% to 3,130.01 and the Nasdaq Composite .IXIC by 53.00 points or 0.52% to 10,207.63.
The CBOE Volatility Index, a barometer of investor fear, saw its largest weekly loss of points since the week ending May 8.
Of the 11 major sectors of the S&P 500, all but real estate .SPLRCR and communications services .SPLRCL closed higher, with materials .SPLRCM posting the largest percentage growth.
Microsoft Corp (MSFT.O) gave the S & P 500 the greatest boost and, according to the trading platform eToro, kept its top position as the most invested share worldwide in June.
Tesla Inc (TSLA.O) rose 8.0% after the electric car manufacturer’s vehicle deliveries in the second quarter exceeded Wall Street estimates. [nL4N2E92OP]
The progressive emissions exceeded the declining emissions on the NYSE by a ratio of 1.90 to 1. On the Nasdaq, a ratio of 1.28 to 1 favored the advanced.
The S&P 500 posted 36 new 52-week highs and no new lows. The Nasdaq Composite posted 123 new highs and 10 new lows.
The volume on the US stock exchanges was 10.03 billion shares, compared to the average of 13.24 billion over the past 20 trading days.
(This story corrects the index that has recovered since February for the Dow instead of the Nasdaq, paragraph 3)
Reporting by Stephen Culp in New York; Edited by Matthew Lewis