Day Traders Diary
The major averages rose for a second day as investors bet the U.S. economy could start to reopen again while oil prices jumped for a fifth straight day. The Dow Jones Industrial Average closed up 133 points or 0.6%, at 23,883. The S&P 500 gained 0.9% while the Nasdaq advanced 1.1%.
The major averages cut their gains in the final hour of trading after Federal Reserve Vice Chairman Richard Clarida told CNBC's "Closing Bell" that the economy may need more fiscal and monetary support. Earlier in the session, the Dow was up more than 400 points.
Pfizer led the Dow higher with a 2.4% gain. Health care and tech were the best-performing sectors in the S&P 500 as they each rose more than 1%. Pfizer and BioNTech have initiated their clinical trial for a potential COVID-19 vaccine.
Investors weighed fears of a second wave of coronavirus cases against efforts to reopen businesses and loosen restrictions. California Gov. Gavin Newsom said Monday some of the state's retailers will be allowed to offer curb-side pickup starting Friday.
Meanwhile, New York Gov. Andrew Cuomo said that the daily number of hospitalizations and new deaths are declining, suggesting the state is on "the other side of the mountain." He added, however, that officials are not seeing as steep of a decline as they had hoped.
Oil prices also got a jolt from hope that the economic downturn has bottomed, rallying 20%. It was the fifth-straight day of gains for crude, a market that has been in turmoil with prices turning negative at one point last month. Crude is up 30% so far in May.
The market's gains on Tuesday came even after dismal data on the U.S. services sector. The ISM nonmanufacturing index dropped last month to its lowest level since March 2009.
United Airlines fell 4% after warning it will likely cut 30% of its management and administrative staff in October while Norwegian Cruise Line Holdings fell 22% as they expressed "substantial doubt" about its future.
U.S. Treasuries ended the session little changed. The 2-yr yield was unchanged at 0.17%, and the 10-yr yield increased two basis points to 0.66%. The U.S. Dollar Index increased 0.3% to 99.78.
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