Wall Street closes higher as recovery signs soothe protest, pandemic worries

NEW YORK (Reuters) – U.S. stocks posted gains on Monday as signs of U.S. economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising U.S.-China tensions.

All three major stock indexes began the month with gains of less than 1% on the heels of a strong May rally.

Market leaders Facebook Inc (FB.O), Apple Inc (AAPL.O) and Amazon.com (AMZN.O) provided the biggest lift to the S&P 500 and the Nasdaq, while Boeing Co (BA.N) gave the Dow its biggest boost.

“Certainly the pace of the stock market recovery can’t continue at the pace it has been,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “I’m stunned at how well the market’s been doing.”

The White House called for “law and order” after six nights of widespread, violent demonstrations triggered by the death of George Floyd at the hands of police, even as the country reels from the economic effects of pandemic-related lockdowns.

“Most investors are saying (the protests) aren’t going to destroy the economy,” Nolte added. “It’s a roadblock but it’s not as big as a pandemic.”

The unrest has prompted retailers such as Target Corp (TGT.N) and Walmart Inc (WMT.N) to shutter a portion of their stores, while Amazon.com (AMZN.O) has scaled back deliveries.

Further weighing on sentiment, China ordered state-owned firms to halt purchases of U.S. soybeans and pork, in retaliation for President Donald Trump’s announcement that he would end special treatment for Hong Kong following China’s move to tighten security measures in the territory.

But economic data boosted investor sentiment, with the Institute for Supply Management’s (ISM) purchasing managers’ index (PMI) showing the contraction of factory activity was slowing.

A fuller picture of the economic damage wrought by pandemic-related lockdowns is expected on Friday, when the Labor Department’s jobs report is expected to show unemployment skyrocketing to 19.7%.

The Dow Jones Industrial Average .DJI rose 91.91 points, or 0.36%, to 25,475.02, the S&P 500 .SPX gained 11.42 points, or 0.38%, to 3,055.73 and the Nasdaq Composite .IXIC added 62.18 points, or 0.66%, to 9,552.05.

Of the 11 major sectors in the S&P 500, all but healthcare .SPXHC ended the session in positive territory.

Pfizer Inc (PFE.N) fell 7.1% after the drugmaker’s breast cancer treatment was deemed unlikely to meet the main goal of a late-stage study.

Gilead Sciences Inc (GILD.O) slid 3.4% following mixed results in a late-stage study of its COVID-19 drug candidate, remdesivir.

Meanwhile, rivals firms CTI Biopharma Corp (CTIC.O) and Proteostasis Therapeutics Inc (PTI.O) advanced 16.7% and 8.4%, respectively following reports that their potential COVID-19 treatments showed promise.

Shares in cosmetics company Coty Inc (COTY.N) jumped 20.9% after the appointment of Chairman Peter Harf as its new chief executive officer.

Advancing issues outnumbered declining ones on the NYSE by a 3.26-to-1 ratio; on Nasdaq, a 1.58-to-1 ratio favored advancers.

The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 98 new highs and 10 new lows.

Volume on U.S. exchanges was 9.95 billion shares, compared with the 11.30 billion average for the full session over the last 20 trading days.

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Wall Street rises with economic hopes; bank stocks jump

(Reuters) – U.S. stocks rose on Wednesday, with the S&P 500 closing above 3,000 for the first time since March 5, as the further easing of lockdowns lifted optimism for an economic recovery.

Bank stocks powered the day’s advance, with the S&P 500 financial index .SPSY leading gains among major sectors. The index rose nearly 10% over the past two sessions for its biggest two-day increase since April 8-9.

JPMorgan Chase & Co (JPM.N) was the leading point gainer in the financial index, rising 5.8% as the stock surged for a second day in a row. The bank’s chief executive, Jamie Dimon, said Tuesday he expects JPMorgan will boost its credit reserves again in the second quarter, but said there are signs the economy is regaining its footing.

After-the-bell on Wednesday, the head of JPMorgan’s corporate and investment banking division said second-quarter revenues are on track to be more than 50% higher than the same period last year.

Continued easing of lockdowns, optimism about an eventual COVID-19 vaccine and massive U.S. stimulus have been driving the market’s recent gains. On Wednesday, Walt Disney Co (DIS.N) announced plans to begin reopening its Walt Disney World resort in Florida, the world’s largest theme park, in phases beginning July 11, and MGM Resorts (MGM.N) said it would reopen its four Las Vegas casinos on June 4.

“It’s all about liquidity and the hopes that the economy will eventually do well,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“The rally will continue, but I don’t think it will continue without pullbacks,” he said, noting that weak second-quarter earnings could give investors a “reality check.”

Tech-related shares underperformed the broader market on Wednesday after leading the recent rally.

The Dow Jones Industrial Average .DJI rose 553.16 points, or 2.21%, to 25,548.27, the S&P 500 .SPX gained 44.36 points, or 1.48%, to 3,036.13, and the Nasdaq Composite .IXIC added 72.14 points, or 0.77%, to 9,412.36.

Amid the recent gains, U.S. tensions with China have cast a cloud on markets.

President Donald Trump said Tuesday that Washington would announce its response to China’s planned national security legislation on Hong Kong before the end of the week. Secretary of State Mike Pompeo said Wednesday that Hong Kong no longer warrants special treatment under U.S. law as it did when it was under British rule, potentially a big blow to its status as a major financial hub.

Tech-related shares are among the most sensitive to Chinese growth, said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute in St. Louis.

“If the market is going to go higher from here, you’re going to have to have broader participation, but you are going to need those large-cap tech companies to be along for the ride because they make up such a large portion of the benchmark,” Samana said.

Also on Wednesday, the Federal Reserve’s Beige Book report showed that U.S. businesses continued to be hammered by the effects of the novel coronavirus epidemic into the middle of May.

Advancing issues outnumbered declining ones on the NYSE by a 3.81-to-1 ratio; on Nasdaq, a 2.21-to-1 ratio favored advancers.

The S&P 500 posted seven new 52-week highs and no new lows; the Nasdaq Composite recorded 41 new highs and 10 new lows.

Volume on U.S. exchanges was 12.86 billion shares, compared to the 11.33 billion average for the full session over the last 20 trading days.

(This story has been refiled to delete extraneous words in 3rd paragraph)

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Wall Street mixed as China-U.S. tensions weigh

(Reuters) – Wall Street was mixed on Friday in a mostly tame finish to a week of strong gains, as investors gauged China-U.S. tensions and amid ongoing uncertainty about the pace of economic recovery from the coronavirus.

President Donald Trump’s warning on Thursday that the U.S. would react strongly to China’s plan for a national security law in Hong Kong has raised concerns over Washington and Beijing’s possibly reneging on their Phase 1 trade deal.

The rhetoric knocked Wall Street off multi-month highs, although the main indexes were still set to add over 2% for the week, fueled by optimism about an eventual coronavirus vaccine and the easing of virus-related curbs.

“The biggest thing out there today is the Hong Kong/China saber rattling,” said Eric Freedman, chief investment officer at U.S. Bank Wealth Management. “We still think COVID-19 concerns are in the driver’s seat, but we could see U.S.-China relations move back into the front seat.”

The Nasdaq index is down about 5% from its Feb. 19 record high, helped in recent weeks by gains in Microsoft , Amazon and other heavyweight companies seen coming out of the economic downturn stronger than their smaller rivals.

At 2:17 p.m. ET, the Dow Jones Industrial Average was down 0.11% at 24,446.31 points, while the S&P 500 gained 0.14% to 2,952.58. The Nasdaq Composite added 0.36% to 9,318.50.

Six of the 11 major S&P 500 sector indexes were lower, with energy dropping more than 1% as oil prices sank 5%. [O/R]

Mixed earnings from retailers Walmart Inc, Best Buy Co Inc and Home Depot Inc earlier this week showed online shopping gaining traction with the lockdown orders, a trend that could damage brick-and-mortar players already feeling pressure from internet rivals.

On Friday, Chinese e-commerce giant Alibaba Group reported better-than-expected quarterly profit, but its shares tumbled almost 6%. Smaller rival Pinduoduo Inc’s U.S.-listed shares surged 11% after the company posted upbeat results.

Nvidia rose 2.8% after forecasting strong quarterly revenue as demand surges for its data center chips.

KKR & Co rose 0.9% after India’s Reliance Industries said the private equity firm would buy a 2.3% stake in its digital unit for 113.67 billion rupees ($1.50 billion).

Data analytics software maker Splunk Inc jumped 12% after it said it expects more demand for its cloud services.

Declining issues outnumbered advancing ones on the NYSE by a 1.11-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.

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

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S&P 500 tumbles on fears of virus resurgence in economic reopening

New York (Reuters) – The S&P 500 dropped 2% on Tuesday as investors took profits following a warning from the top U.S. infectious disease expert that premature moves to reopen the nation’s economy could lead to novel coronavirus outbreaks and set back economic recovery.

The index suffered its first decline in four sessions as investors weighed the potential for a second wave of virus infections against hopes that easing of stay-at-home restrictions could ignite a recovery in the U.S. economy, which has been severely damaged by the virus.

Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, told Congress that the virus, which has already killed 80,000 Americans, was not yet under control and that there would not likely be a treatment or vaccine in place by late August or early September.

“There is a real risk that you will trigger an outbreak that you may not be able to control and … could even set you back on the road to try to get economic recovery,” Fauci said of premature steps.

And reports of new clusters of coronavirus infections in countries such as China, South Korea and Germany where lockdowns had been lifted appear to have added to worries.

Optimism about an economic recovery and massive stimulus measures have helped the S&P 500 climb about 34% to Tuesday’s intraday high from the March 23 low of the pandemic-driven selloff.

“It goes back to science versus the Federal Reserve. The Federal Reserve has been supportive of the market … What’s going to win here?,” said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York.

“From the science viewpoint if we open too quickly, we’ll just go back to where we were. But if we don’t open at all, we have this economic malaise.”

With concerns about potential for declines, participants like Dennis Dick, proprietary trader at Bright Trading LLC in Las Vegas, were anxious to lock in their profits.

“People are very nervous about how the reopening is going to go,” he said.

Wall Street’s three major averages closed around their session lows. The Dow Jones Industrial Average fell 457.21 points, or 1.89%, to 23,764.78, the S&P 500 lost 60.2 points, or 2.05%, to 2,870.12 and the Nasdaq Composite dropped 189.79 points, or 2.06%, to 9,002.55.

The Cboe Volatility Index, known as Wall Street’s fear gauge, ended 5.47 points higher at 33.04. It was the biggest one-day point gain for the VIX in more than three weeks.

Among the S&P’s 11 major sectors, real estate was the biggest percentage decliner with a 4.3% drop.

Industrials and financials were the next biggest laggards with respective declines of 2.8% and 2.7%.

Tuesday’s data showed that U.S. consumer prices dropped by the most since the Great Recession in April, due to a plunge in demand for gasoline and services including airline travel as people stayed home during the coronavirus crisis.

But prices for food consumed at home rose 2.6% in the largest advance since February 1974, leaving some investors anxious about the prospect of stagflation, if consumers cannot keep up with price increases for essentials.

“What happens if the cost of essential goods get more expensive and you’re not earning enough money. That could become really problematic,” said Ladenburg Thalmann’s Blancato.

Helping to drag down the financial sector was a 7.8% drop in BlackRock Inc, after its top shareholder PNC Financial Services Group Inc said it planned to sell its entire 22% stake in the world’s largest asset manager.

Online food delivery company GrubHub Inc surged 29% after a person familiar with the matter said Uber Technologies Inc was in advanced talks to buy the company in an all-stock deal.

Declining issues outnumbered advancing ones on the NYSE by a 2.91-to-1 ratio; on Nasdaq, a 2.65-to-1 ratio favored decliners.

The S&P 500 posted nine new 52-week highs and two new lows; the Nasdaq Composite recorded 91 new highs and 42 new lows.

On U.S. exchanges 11.28 billion shares changed hands compared with the 11.36 billion average for the last 20 sessions.

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Wall Street set to jump as China data fuels recovery hopes

(Reuters) – Wall Street’s main indexes were set to open sharply higher on Thursday after a surprise rise in Chinese exports and a surge in oil prices spurred hopes of an economic recovery, taking the sting off another gloomy weekly jobless claims report.

Exxon Mobil Corp and Chevron Corp rose more than 2% in premarket trading on optimism around future oil demand after China’s overseas shipments in April rose for the first time this year as factories raced to make up for lost sales.

Weapons maker Raytheon Technologies Corp jumped 4.7% to lead gains among Dow components, as Chief Financial Officer Toby O’Brien said he expected positive free cash flow in 2020, primarily driven by its defense business.

“With expectations just set so low, any positive news is really being welcomed, and the continuing negative news, to some extent, is being pushed to the side,” said Rick Meckler a partner at Cherry Lane Investments in New Vernon, New Jersey.

U.S. stock indexes have rebounded sharply from a coronavirus-fueled selloff in March, powered by monetary and fiscal stimulus and, more recently, hard-hit states reopening businesses following sweeping lockdowns.

However, with the S&P 500 now about 16% below its record high, analysts have warned of another selloff with data revealing the extent of the pandemic’s economic damage and U.S.-China tensions resurfacing over the origin of the novel coronavirus.

Latest data showed 3.1 million Americans applied for state unemployment benefits last week, but the number marked the fifth straight weekly decrease in applications and raised hopes the worst of the outbreak’s impact on the labor market was over.

The weekly claims report followed news on Wednesday that private payrolls fell by a record 20.2 million in April, which set up the overall labor market for historic job losses. The Labor Department’s more comprehensive nonfarm payroll report is due on Friday.

“The stock market currently is not a true representation of the economy’s weakened status,” said Hussein Sayed, chief market strategist at FXTM.

“Investors are betting on a best-case economic recovery scenario supported by further easing measures. But predicting how asset prices play out during this pandemic is more of a guessing game than any form of true analysis.”

At 8:52 a.m. ET, Dow e-minis were up 316 points, or 1.34%, S&P 500 e-minis were up 42.5 points, or 1.5% and Nasdaq 100 e-minis were up 134.5 points, or 1.5%.

About 350 of the S&P 500 companies have reported so far and first-quarter earnings are expected to have fallen 12.4%, with analysts expecting an earnings recession by the second quarter, according to Refinitiv data.

PayPal Holdings Inc jumped 9.7% after the payments processor said it expected a strong recovery in payments volumes in the second quarter as social distancing drives more people to shop online.

Lyft Inc surged 15.2% as the ride-hailing company posted higher-than-expected revenue and vowed to further cut costs to become profitable. Rival Uber Technologies gained 7.8%.

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Wall Street gains on optimism over easing lockdowns

(Reuters) – Wall Street’s main indexes rose on Wednesday on hopes of a pickup in business activity as states eased coronavirus-induced curbs, with investors also looking past a stunning 20 million plunge in U.S. private payrolls last month.

Five of the 11 major S&P sectors were trading higher, with the technology index .SPLRCT leading gains as traders bought into stocks perceived to be resilient at a time when billions of people globally are still locked indoors.

U.S. stock indexes are now on course to gain for three straight sessions, building on a rally in April that was sparked by unprecedented stimulus and signs that the outbreak was peaking.

However, with macroeconomic data still foreshadowing a severe global recession, analysts have warned of another selloff, particularly if reopening of economies sparks another wave of infections.

Data on Wednesday showed U.S. private employers laid off a record 20.236 million workers in April, setting up the overall labor market for historic job losses last month.

The Labor Department’s more comprehensive report is due Friday, while a reading of initial jobless claims is set to be released on Thursday.

“We knew this was going to be bad so it matches the jobless claims. A lot of the bad news for April is pretty much factored in,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“But markets are looking at a potential recovery here, we’ve got a lot of states opening up. Businesses are starting to get going again, but the question is, is it too fast?”

At 10:45 a.m. ET the Dow Jones Industrial Average .DJI was up 60.78 points, or 0.25%, at 23,943.87, the S&P 500 .SPX was up 10.94 points, or 0.38%, at 2,879.38 and the Nasdaq Composite .IXIC was up 97.84 points, or 1.11%, at 8,906.96.

The S&P financials index .SPSY was among the biggest decliners as the Treasury Department said it would launch a long-planned 20-year bond to meet record government borrowing needs amid the outbreak.

In company news, General Motors Co (GM.N) jumped 6.3% after the automaker topped first-quarter profit expectations and outlined plans for a May 18 restart of most of its North American plants.

CVS Health Corp (CVS.N) gained 2.6% after the company posted a better-than-expected first-quarter profit, as its pharmacy benefits management business and its drugstores benefited from customers stockpiling medicines due to COVID-19 lockdowns.

Activision Blizzard Inc (ATVI.O) rose 4.9% after raising its revenue forecast on higher demand for video games such as its “Call of Duty” amid lockdowns.

Walt Disney Co (DIS.N) added 3.7% after the company said it would reopen Shanghai Disneyland to a reduced number of visitors next week, even as it estimated a $1.4 billion hit to profit.

Advancing issues almost matched decliners on the NYSE and the Nasdaq. The S&P index recorded four new 52-week highs and two new lows, while the Nasdaq recorded 34 new highs and 11 new lows.

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Wall Street selloff resumes after Trump's China tariff threat

(Reuters) – U.S. stocks fell on Friday after President Donald Trump threatened to impose new tariffs on Beijing over the coronavirus crisis, while business warnings from Amazon.com and big oil firms highlighted the pain inflicted by global lockdowns.

Trump’s threat brought attention back to the trade war between the world’s two largest economies that has kept global financial markets on tenterhooks for nearly two years.

“It will not be easy to repair corporate carnage after this perfect storm,” said Peter Cecchini, chief market strategist at Cantor Fitzgerald in New York.

“The trade war mattered because the stress was not with the consumer this time; it was within companies’ balance sheets.”

The consumer discretionary subindex .SPLRCD slid 4.8%, after Amazon.com Inc (AMZN.O) said it could post its first quarterly loss in five years as it was spending at least $4 billion in response to the coronavirus pandemic. The e-commerce giant’s shares tumbled 7.6%.

The energy index .SPNY fell 5.8% as big oil firms Exxon Mobil (XOM.N) and Chevron Corp (CVX.N) said they are slamming the brakes on U.S. shale oil production, hurt by crashing oil prices.

Apple Inc (AAPL.O) dipped 0.2% after Chief Executive Officer Tim Cook said it was impossible to forecast overall results for the current quarter because of uncertainty created by the virus.

The S&P 500 technology index .SPLRCT shed 2.3%, led by declines in trade-sensitive chip stocks. The Philadelphia Semiconductor index .SOX fell 5.1%.

With nearly half of the S&P 500 companies having reported results so far, analysts expect a 12.7% fall in profits for the first quarter and an even sharper decline of 37.8% for the current quarter.

Still, aggressive stimulus measures and hopes of reopening the economy from virus-induced curbs have helped the S&P 500 index .SPX post its best month in 33 years in April. The benchmark index is now nearly 20% away from reclaiming a record high hit in February.

At 12:22 p.m. ET the Dow Jones Industrial Average .DJI was down 576.41 points, or 2.37%, at 23,769.31, the S&P 500 .SPX was down 83.03 points, or 2.85%, at 2,829.40 and the Nasdaq Composite .IXIC was down 294.86 points, or 3.32%, at 8,594.69.

U.S. manufacturing activity plunged to an 11-year low in April, supporting analysts’ views the economy was sinking deeper into recession. However, the Institute for Supply Management’s (ISM) index reading of 41.5 last month was a smaller than the expected drop to 36.9.

“It almost seems like the market has taken a vacation from looking at the economic data because of likely all the stimulus and the forward-looking thought of the economy reopening,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management in Boston.

United Airlines Holdings Inc (UAL.O) slipped 9.6% after posting a first-quarter loss of $1.7 billion.

Declining issues outnumbered advancers for a 7.17-to-1 ratio on the NYSE and for a 6.36-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week high and two new lows, while the Nasdaq recorded 14 new highs and eight new lows.

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Futures rise at the end of stormy week

(Reuters) – U.S. stock index futures gained on Friday with bargain hunters returning at the end of a tumultuous week marked by a record collapse in oil prices and growing evidence of the economic damage from the coronavirus pandemic.

The S&P 500 .SPX ended slightly lower on Thursday as a report raised doubts about a potential treatment for COVID-19 and as data confirmed a near halt in business activity.

With the outbreak wiping out all the U.S. jobs created since the global financial crisis, investors are tracking comments from Corporate America for signs of a revival in production as some states start easing lockdown measures.

Denting expectations, a report said Boeing Co (BA.N) was planning to cut 787 Dreamliner output by about half and announce job cuts in its first-quarter earnings report next week.

Analysts expect a 14.1% decline in S&P 500 first-quarter earnings after a mixed bag of reports from U.S. banks and consumer discretionary firms so far.

Credit card issuer American Express Co (AXP.N) and Verizon Communications (VZ.N) are slated to issue quarterly reports later in the day.

At 06:19 a.m. EDT, Dow e-minis 1YMcv1 were up 127 points, or 0.54%, S&P 500 e-minis EScv1 were up 17.5 points, or 0.63% and Nasdaq 100 e-minis NQcv1 were up 35 points, or 0.4%.

SPDR S&P 500 ETFs (SPY.P) were up 0.4%.

The S&P 500 index .SPX closed down 0.05% at 2,797.8​ on Thursday.

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Stimulus hopes lift Wall Street after historic oil rout

(Reuters) – Wall Street’s main indexes rose on Wednesday on signs of more stimulus to aid small businesses ride out the coronavirus-induced economic slump and a recovery in oil prices.

U.S. crude and benchmark Brent prices edged higher after a collapse in the past two days, sending the S&P 500 energy index .SPNY up 2.8%, with Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) among the top gainers on the blue-chip Dow Jones.

All the 11 major S&P 500 sector indexes were trading higher, as the U.S. Senate approved a relief package of $484 billion, adding to trillions of dollars in stimulus that have helped Wall Street rebound from its March lows.

The House of Representatives is expected to clear the bill on Thursday.

“Investors are looking at the economy very differently than they are looking at markets,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

“The market is getting a lot of support from the Federal Reserve and the government. The economy is getting some, but the economy is going to move at a different pace.”

The benchmark S&P 500 is still 17% below its record high as state-wide shutdowns spark layoffs and crush consumer spending, putting several sectors at the risk of collapse.

Estimates for U.S. jobless claims for the latest week range as high as 5.5 million, while a reading on April U.S. factory activity is likely to fall to levels last seen during the 2008 financial crisis. Both reports are due Thursday.

Analysts have also drastically cut their S&P 500 earnings expectations for the first and second quarters and are now projecting a corporate recession for 2020, according to IBES data from Refinitiv.

A week after the big U.S. banks issued dismal 2020 forecasts, consumer discretionary and technology firms fared slightly better as the lockdown measures boosted demand for online streaming and home delivery of meals.

“Earnings may or may not be good because (the health crisis) just started taking root toward the end of the first quarter,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

“Investors are looking for what companies are going to say on their prospects for the future and are gauging the ability of management to navigate through this turbulent time.”

Fast-casual chain Chipotle Mexican Grill Inc (CMG.N) jumped 8.7% after it reported soaring digital and home delivery sales and said it had enough cash and liquidity to get through the next year.

Texas Instruments Inc (TXN.O) rose 3.5% as the chip industry bellwether reported better-than-expected first-quarter results and said a strong inventory allowed it to be prepared for disruptions caused by the pandemic.

Netflix Inc (NFLX.O) more than doubled its own projections for new customers in the first quarter. However, its shares fell 3.6% as it forecast a weaker second half if the lockdown measures were to be lifted.

Delta Air Lines Inc (DAL.N) reported its first quarterly loss in nine years, but shares gained 3.5% after the airline operator said cheap fuel and cost reduction measures will cut its expenses by about half in the current quarter.

At 10:16 a.m. ET, the Dow Jones Industrial Average .DJI was up 343.40 points, or 1.49%, at 23,362.28, the S&P 500 .SPX was up 41.58 points, or 1.52%, at 2,778.14 and the Nasdaq Composite .IXIC was up 149.96 points, or 1.81%, at 8,413.19.

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Wall Street tumbles as oil crash stirs pandemic fears

(Reuters) – Wall Street tumbled for a second straight day on Tuesday as a collapse in U.S. oil prices and glum forecasts by companies worsened fears of a deep economic downturn.

All 11 S&P 500 sector indexes fell 1.6% or more, with energy .SPNY sliding for the seventh time in eight sessions a day after the WTI contract CLc1 crashed below zero as oil traders ran out of storage for May deliveries.

With the collapse spilling into June futures contracts, equity investors became wary of the extent of the economic damage from sweeping lockdown measures that have halted business activity and sparked millions of layoffs. [O/R]

The S&P information technology index .SPLRCT slumped 4.1%, while the financial index .SPSY dropped 3.2%. After many companies pulled their forecasts because of uncertainty related to the coronavirus, investors will focus in the coming days on first-quarter reports for signs of how badly the pandemic is hurting U.S. corporations.

The benchmark S&P 500 index .SPX has climbed over 20% from its March low, powered by trillions of dollars in stimulus, but it remain nearly 20% below its February record high due to fears of devastating economic damage caused by the coronavirus.

“What you’re seeing is pulling back in the areas that have done well, and taking profits while you can,” said Quincy Krosby, a market strategist at Prudential Financial in Newark, New Jersey. “The question will be whether this is a consolidation after the market ran up so quickly, or is this the beginning of a more important pullback in the overall market?”

U.S. jobless claims hit 22 million in the past month as companies launched dramatic cost-saving measures to ride out the slump, and readings of U.S. business activity surveys, due on Thursday, are likely to plummet to recession-era lows.

Coca-Cola Co (KO.N) provided the latest evidence of the damage wrought by the global health crisis, saying its current-quarter results would take a severe hit from low demand for its soft drinks. Its stock fell 2.5%.

International Business Machines Corp (IBM.N) declined 3% after the company withdrew its 2020 annual forecast late on Monday.

In extended trade, Netflix (NFLX.O) surged 2.6% after the streaming video company reported more paid subscribers than expected in the first quarter.

Also after the bell, Texas Instruments (TXN.O) rose 3% following its quarterly report.

During Tuesday’s session, the Dow Jones Industrial Average .DJI fell 2.67% to end at 23,018.88 points, while the S&P 500 .SPX lost 3.07% to 2,736.57.

The Nasdaq Composite .IXIC dropped 3.48% to 8,263.23.

Declining issues outnumbered advancing ones on the NYSE by a 4.27-to-1 ratio; on Nasdaq, a 3.18-to-1 ratio favored decliners.

The S&P 500 posted one new 52-week high and no new lows; the Nasdaq Composite recorded 25 new highs and 34 new lows.

Volume on U.S. exchanges was 12.1 billion shares, compared with a 13.2 billion-share average for the full session over the last 20 trading days.

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