Stocks rise as Wall Street heads for a 3rd straight gain

Stocks rise as Wall Street heads for a 3rd straight gain

Stocks rise as Wall Street heads for a 3rd straight gain

NEW YORK — Stocks are drifting higher in midday trading on Wall Street Wednesday, putting the market on track for its third gain in a row.

The S&P 500 was up 0.5%, coming off the heels of a whiplash start to the year where its worst quarterly performance since 2008 gave way to its best quarter since 1998. Treasury yields and the price of oil also ticked higher following encouraging reports on the U.S. economy. But stocks in Europe and Asia were mixed after reports underscored the fragility of the recovery as COVID-19 levels continue to mount in hotspots around the world.

The Dow Jones Industrial Average was up 17 points, or 0.1%, at 25,830, as of 12:06 p.m. Eastern time, after earlier drifting between a gain of 206 points and a loss of 99 points. The Nasdaq composite was up 0.8%.

FedEx jumped 13.6% for the biggest gain in the S&P 500 after it reported better results for the latest quarter than Wall Street expected. A boom in online shopping helped drive revenue for FedEx’s ground-delivery business.

Constellation Brands, which sells Corona beer, rose 7.7% after it also reported stronger quarterly results than analysts had forecast. Underlining how much uncertainty is ahead, though, it joined the long list of companies that are declining to give forecasts.

Pfizer rose 4.3% after it and German biotech company BioNTech announced encouraging, preliminary data on their COVID-19 vaccine candidate.

Markets around the world roared back last quarter on hopes that economies are beginning to pull out of the severe, sudden recession that struck after governments shut down businesses in hopes of slowing the spread of the coronavirus. But a recent resurgence of COVID-19 cases, particularly in the U.S. South and West, has raised doubts about whether those hopes were premature or overdone.

In the United States, a report said that the manufacturing sector returned to growth last month, a much better reading than the slight contraction that economists were expecting.

Earlier, a separate report suggested private employers hired more workers than they cut in June. Payroll processor ADP also revised its previously reported numbers for May, saying that private employers actually added nearly 3.1 million jobs that month instead of cutting 2.8 million.

But the June growth in ADP’s payroll report wasn’t as strong as economists expected. The U.S. government’s more comprehensive monthly jobs report will arrive Thursday.

In the world’s third-largest economy, a quarterly Bank of Japan survey showed manufacturers’ sentiment plunged to its lowest level in more than a decade, as the pandemic crushes exports and tourism.

But in the world’s second-largest economy, a separate survey showed China’s manufacturing activity improved in June, adding to signs of a gradual recovery. A similar survey for the 19-country eurozone showed an improvement in manufacturing in June, with the industry almost growing again after widespread shutdowns.

Analysts said that while the data pointed in the right direction, it shows that an economic recovery from the pandemic will be slow.

In Asia, Japan’s Nikkei 225 slipped 0.7%, South Korea’s Kospi dipped 0.1% and stocks in Shanghai rose 1.4%. In Europe, France’s CAC 40 was down 0.2% and Germany’s DAX lost 0.4%. The FTSE 100 in London was down 0.2%.

The yield on the 10-year Treasury rose to 0.67% from 0.65% late Tuesday. It tends to move with investors’ expectations for the economy and inflation.

A barrel of U.S. crude oil rose 1% to $39.68. Brent crude, the international standard, rose 1.5% to $41.89.

___

AP Business Writer Yuri Kageyama contributed.

Stan Choe, The Associated Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Sylvan Lake RCMP are looking for the identity of the suspect who stole from over 40 resident mail boxes. (Photo Courtesy of Sylvan Lake RCMP)
Over 40 mailboxes broken into at Sylvan Lake apartment building

Sylvan Lake RCMP are investigating the incident and searching for the identity of the suspect

File photo by Red Deer Advocate
Town Of Sylvan Lake temporarily lays-off 30 staff members

Thirty part-time staff members at the NexSource Centre have been laid off until January

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, confirmed eight additional virus-deaths Monday afternoon including one in central zone. (Photo by Chris Schwarz/Government of Alberta)
Central zone up to 1,249 active COVID-19 cases

Red Deer sits at 257 active COVID-19 cases

Agriculture Minister Devin Dreeshen (Alberta government photo)
Innisfail-Sylvan Lake to receive $5,000,000 in Municipal Operating Support Transfer funding

MLA Devin Dreeshen breaks down the funding communities will receive from MOST

A logo for Netflix on a remote control is seen in Portland, Ore.,Aug. 13, 2020. Experts in taxation and media say a plan announced Monday by the government will ultimately add to the cost of digital services and goods sold by foreign companies. THE CANADIAN PRESS/AP-Jenny Kane
‘Netflix tax’ for digital media likely to raise prices for consumers, experts say

The government says Canadian companies already collect those taxes when they make digital sales

Gaming content was big on YouTube in 2020. (Black Press Media files)
What did Canadians watch on Youtube during isolation? Workouts, bird feeders

Whether it was getting fit or ‘speaking moistly,’ Canadians had time to spare this year

A teacher places the finishing touches on the welcome sign at Hunter’s Glen Junior Public School which is part of the Toronto District School Board (TDSB) during the COVID-19 pandemic in Scarborough, Ont., on Sept. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Hindsight 2020: How do you preserve a year many Canadians would rather forget?

Figuring out how to preserve the story of the pandemic poses a series of challenges

Team Manitoba celebrate after defeating Team Ontario to win the Scotties Tournament of Hearts in Moose Jaw, Sask., Sunday, Feb. 23, 2020. Curling Canada wants Calgary’s Canada Olympic Park to be a curling hub for the season’s top events. THE CANADIAN PRESS/Jonathan Hayward
Calgary facility set to become curling hub during pandemic

Curling Canada has provisional approval for Calgary’s hub-city concept from Alberta Health

Ash and Lisa Van carry a freshly cut Christmas tree while wearing personal protective masks at a Christmas Tree Farm in Egbert, Ontario, Sunday, Nov. 29, 2020 THE CANADIAN PRESS/ Cole Burston
‘Everyone wants a tree and they want it now’: Christmas tree sales on pace for record

Anticipated demand for Christmas trees has sparked a rush by some to purchase more trees wholesale

A scene from last year’s Light the Night fundraiser at the Stettler Town and Country Museum. This year’s rendition is on a drive-through basis only, but it still promises to be a not-to-be-missed seasonal highlight. (Independent file photo)
Stettler Town and Country Museum hosts ‘Light the Night’

This year’s rendition is drive-through only, but will still prove to be a dazzling display

(Black Press File Photo)
Rimbey woman gathering Christmas gifts for seniors at Valleyview Manor

Margaret Tanasiuk says she doesn’t want anyone to feel forgotten on Christmas morning

Most Read