Wall Street shows growth amid surging Boeing stock prices

By | June 3, 2020
Wall Street shows growth amid surging Boeing stock prices

The indicators show that investors are optimistic about the prospects for economic recovery

Wall Street showed growth on Wednesday amid a spike in Boeing stock prices, indicating that investors were optimistic about the prospects for economic recovery after the coronavirus pandemic, while a wave of protests continued in the country.

Boeing shares rose 8.5 percent after it became known that hedge fund billionaire Daniel Loeb Third Point acquired a stake in the company. The airline showed the highest growth among the companies of the Dow Jones index.

Microchip Technology shares rose 10.6 percent after the company raised its forecast for sales in the current quarter, having begun to compensate for losses due to the suspension of production due to the pandemic.

The Nasdaq index, which has been growing for 7 of the last 8 sessions, is now only 2 percent behind the record high recorded in mid-February.

Data released Wednesday showed signs of stabilization in the US job market: Automatic Data Processing’s National Employment Report showed private companies laid off 2.76 million employees last month, while losses of 9 million were projected.

On Friday, the Ministry of Labor will present a more comprehensive report on the labor market, and on Thursday – data on the number of applications for unemployment benefits.

The optimism of investors is also facilitated by the statistics of the Institute for Supply Management, which demonstrates that in May activity in the service sector shifted from a minimum of 11 years ago.

The S&P 500 is 8 percent behind record levels.

So far, markets have largely ignored tensions between the US and China and US protests over the death of African-American George Floyd.

As of 12:50, the Dow Jones Industrial Average index grew by 390.56 points or 1.52 percent to 26 133.21 points, the S & P 500 – by 33.09 points or 1.07 percent to 3113.91 points, and the Nasdaq Composite – by 50.83 points, or 0.53 percent to 9,659.20.

Lyft taxi aggregator shares rose 10.2 percent after the company announced an increase in the number of orders on its platform compared to April.

Shares of cosmetics company Coty rose 7 percent after it became known that it was in talks with TV star Kim Kardashian about a possible joint line of products.

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