U.S. stocks open lower amid civil unrest

  • U.S. stocks open lower amid civil unrest

U.S. stocks open lower amid civil unrest

But Robert Carnell, regional head of research for the Asia-Pacific region at ING, warned against too much optimism, given the tensions between the US and China, unrest in Hong Kong and the USA, and uncertainties over prospects for a vaccine or dependable treatments for COVID-19, the illness caused by the new coronavirus.

European markets trade mostly higher, with France's CAC +1.1% and U.K.'s FTSE +0.8% but Germany's DAX -1.6%; in Asia, Japan's Nikkei +0.8% and China's Shanghai Composite +2.2%.

May Purchasing Managers' Index (PMI) data pointed to a fragile but encouraging recovery in global manufacturing, raising hopes that the worst is over.

Market leaders Facebook Inc, Apple Inc and Amazon.com provided the biggest lift to the S&P 500 and the Nasdaq, while Boeing Co gave the Dow its biggest boost.

"How long can markets remain buoyant?" he asked. Crowds gathering to protest injustice and racism also could touch off more outbreaks.

"It wouldn't take a lot for (case numbers) to start rising again", said ING's head of research in Asia, Rob Carnell, who said markets' nonchalance may not persist if, as Trump warned, troops are called out to put down protests.

The Dow Jones Industrial Average lost almost 100 points after the opening bell on the New York Stock Exchange, but rebounded and was up more than 91 points, or 0.36 percent, at closing. Last week, the Dow and S&P 500 grew by more than 3 percent and the Nasdaq climbed almost 2 percent.

Monday's downbeat moves followed a solid month on Wall Street that saw the Dow rise 4.3 percent, the S&P 500 gain 4.5 percent, and the tech-heavy Nasdaq mark a 6.8-percent return for May. The index is up more than 35% from its March lows.

Of the 11 major sectors in the S&P 500, all but healthcare ended the session in positive territory. That helped spur the market's move higher from its March lows.

More than 6 million coronavirus cases have been confirmed globally, including over 1.7 million in the USA, according to Johns Hopkins University. The next day, the government releases its weekly tally of applications for unemployment aid. The company's shares first dropped after market close on Friday, when it said that it would stop a potential breast cancer treatment. Analysts surveyed by FactSet expect the report will show the economy lost 9 million jobs last month.

The yield on the 10-year Treasury rose 2.16% to 0.662% while yield on the 30-year Treasury jumped 3.41% to 1.455%.

In other trading, benchmark US crude oil added 42 cents to $35.86 a barrel in electronic trading on the New York Mercantile Exchange.

Crude oil futures edged up 0.17% at $35.55 per barrel, Brent crude gained 0.63% at $38.56. Brent crude oil, the global standard, gained 37 cents to $38.69 a barrel.

USA stocks rose slightly Monday to begin June after two consecutive weeks of solid growth.

The euro was stronger against the dollar, extending gains as the lockdown easing gathered pace across the continent, hitting a two-month high of $1.1154 at one stage.