Dow Notches Third-Straight Win as Bets on Faster Economic Recovery Continue
Investing.com
Published Jun 03, 2020 03:40PM ET
Updated Jun 03, 2020 04:03PM ET
By Yasin Ebrahim
Investing.com – The Dow climbed for the third-straight session as hopes of a faster economic recovery were given a boost on Wednesday amid signs the Covid-19 pandemic's grip on the economy has passed.
The Dow Jones Industrial Average rose 2.05%, or 527 points, the S&P 500 gained 1.36%, while the Nasdaq Composite added 0.78%.
With just days to go until Friday's crucial nonfarm payrolls report, ADP (NASDAQ:ADP) said that private payrolls fell by 2.76 million jobs in May, confounding economists' expectations for a drop of 9 million.
That marked a significant improvement from the 19.5 million job cuts seen in April, raising hopes the labor market losses have bottomed.
The services sector, which accounts for about two-thirds of overall economic growth, is also showing signs of life, with activity rising from the lowest level in 11 years in April.
Institute for Supply Management data for May showed a reading of 45.4, above forecasts for a reading of 44.
The duo of upbeat economic reports stoked investor hopes of a quicker economic rebound, underpinning cyclical sectors like financials and industrials.
Financials jumped 4.4%, with banks leading the charge. JPMorgan (NYSE:NYSE:JPM) was up 5.4%, Bank of America (NYSE:NYSE:BAC) up 4.5% and Citigroup (NYSE:NYSE:C) up 4.9%.
In industrials, Boeing (NYSE:BA) rallied 13% after reaching a compensation package and a new delivery deal with travel company TUI Group over the grounding of its 737 Max planes.
On the earnings front, Zoom Video Communications (NASDAQ:ZM) jumped 6% after reporting first-quarter results that markedly beat expectations on the bottom and top lines as the pandemic spurred demand for its videoconferencing software.
Canada Goose (NYSE:GOOS) rose 18% after reporting a better-than-expected fiscal fourth-quarter profit. The outerwear retailer also said it would increase focus on direct-to-consumer sales in the early stages of the reopening phase.
Elsewhere, Warner Music (NASDAQ:WMG) made a bright start to life as a publicly-traded company, rallying 21%. The music label company had priced its offering of 77 million shares at $25 per share.
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