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|I:DJI||DOW JONES AVERAGES||27386.98||+185.46||+0.68%|
The Dow Jones Industrial Average rose over 579 points or 2.3 percent, while the S&P 500 tacked on 1.47 percent.
Boeing gave the broader market a boost rising over 14 percent after a successful test flight of 737 Max jet which is expected to be followed by future tests.
|I:COMP||NASDAQ COMPOSITE INDEX||11108.070638||+109.67||+1.00%|
The Nasdaq rose 1.2 percent helped by Apple. Tesla also rallied after CEO Elon Musk said the electric automaker could break-even in the second quarter despite the global pandemic.
|DHI||D.R. HORTON INC.||67.62||-0.47||-0.69%|
On the economic front, the number of Americans signing contracts to buy homes rose a record 44.3 percent in May from a month earlier. That was more than double the 17 percent rise that economists were expecting. It was also a whiplash reversal from the record-breaking plunge of nearly 22 percent that came in April as the pandemic froze the housing market.
The encouraging housing report is likely a sign of pent up demand, considering that spring is the key season for home sales and it was delayed mostly until summer, said Mark Litzerman, head of global portfolio management at Wells Fargo Investment Institute.
“It is good to see that people are out there buying again,” he said. “The biggest thing is how quickly the consumer comes back and how do they come back.”
Investors shrugged off a rise in infections of the new coronavirus, including in the U.S. South and West, has dented the optimism that earlier sent the S&P 500 screaming nearly all the way back to the record it reached in February.
The worry is that the worsening levels could choke off the budding improvements the economy has shown recently as states and other governments ease up on lockdown orders, even with the Federal Reserve and other central banks pumping unprecedented amounts of aid into the economy.
Florida and Texas put new restrictions on bars to slow the spread of the virus, for example, which helped drive the S&P 500 to a loss of 2.9% last week. Other governments around the world are likewise backtracking on efforts to reopen their economies following widespread lockdowns that sent the global economy into a sudden, severe recession.
Simon Property Group, an owner of shopping malls, has seen its shares rise and fall for months with expectations of whether people will be able to get closer to “normal” activity. It was up 8% for one of the largest gains in the S&P 500.
|SPG||SIMON PROPERTY GROUP INC.||61.20||-1.30||-2.08%|
Stocks of airlines, whose profits are also excruciatingly tied to a reopening economy, were also strong.
|LUV||SOUTHWEST AIRLINES CO.||33.02||+0.30||+0.92%|
|AAL||AMERICAN AIRLINES GROUP INC.||13.04||+0.48||+3.82%|
|ALK||ALASKA AIR GROUP||36.42||+0.66||+1.85%|
Facebook rose over 2 percent after shaking off a loss earlier in the morning. It's facing a defection of advertisers tired of the racist and violent posts spreading through the social network. Starbucks on Sunday joined the list of big companies saying it will pause its advertising on social media.
Given all the uncertainty about the path for the economy and corporate profits, many professional investors say the only sure thing for markets is that upcoming movements will likely be volatile. The second quarter of the year is set to close out Tuesday, and the S&P 500 is on pace for a gain of more than 17 percent, which would be its best since late 1998. Of course, that follows the U.S. stock market’s loss of nearly 20 percent in the first quarter, which was its worst since the bottom of the 2008 financial crisis.
The yield on the 10-year Treasury rose to 0.64% from 0.63% late Friday. It tends to move with investors’ expectations for the economy and inflation.
Oil prices rose. Benchmark U.S. crude oil for August delivery was up 3.1% to $39.70 a barrel.
In Europe, the French CAC 40 was up 0.7% after recovering from an earlier dip. Germany's DAX returned 1.2%, and the FTSE 100 in London was up 1.1%. Many Asian markets finished with losses.