USA stocks rise as financial shares rally

Andrew Cummings
July 12, 2020

Nasdaq recorded a fifth record closing level in six days, boosted by rising stock (NASDAQ:AMZN), Microsoft Corp.

The increases follow two pieces of good coronavirus-related news on the medical front.

The United States registered the largest single-day increase in new COVID-19 infections globally for the second day in a row on Thursday.

The second-quarter earnings season is expected to begin in earnest next week.

"But the wildcard seems to be the pickup in corona cases, not just in one location but essentially across the country".

The markets rose Friday as drugmaker Gilead Sciences reported a positive study showing its antiviral remdesivir helped treat coronavirus.

A slate of financial knowledge, together with a report month-to-month payrolls addition, has pointed to a revival in enterprise exercise in June, fueling the USA inventory market's stimulus-driven rally.

While the S&P 500 opened higher by 25.28 points, or 0.81 percent, at 3,155.29. Gilead's shares rose 2.5%.

Shares of JPMorgan Chase and Goldman Sachs rose 5.47 percent and 4.44 percent, correspondingly, leading the gainers in the 30-stock index. Analysts expect profits for S&P 500 companies to plunge about 44%, the steepest drop since the 2008 financial crisis, according to IBES Refinitiv data.

"With the earnings expectations so low, investors are of the mindset that they will more likely be exceeded rather than fall even further", said Stovall.

At 01:10 p.m. ET the Dow Jones Industrial Average .DJI fell 1.16% to 25,764.46.

The Nasdaq Composite gained 152.75 points, or 1.50 percent, to 10,360.38 at the opening bell, notching up another record high.

Netflix Inc (NFLX.O) rose 3% after Goldman Sachs hiked its worth goal on the video streaming service's shares.

Advancing issues outnumbered declining ones on the NYSE by a 2.37-to-1 ratio; on Nasdaq, a 1.30-to-1 ratio favored advancers. The Nasdaq notched a record close in the prior session and the Dow is about 13.6% from its own February all-time peak.

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