Stock Market News for Jul 7, 2020

U.S. stock markets closed sharply higher on Monday buoyed by rally in global stock markets. Reopening of the economy and better-than-expected economic data also boosted investors' confidence on risky assets like equities. All three major stock indexes ended in the green.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) jumped 1.8% or 459.67 points to close at 26,287.03. This was the blue-chip index's fourth positive sessions in last five days. Notably, 29 components of the 30-stock index ended in the green while 1 closed in red.

Major gainer of the Dow was The Goldman Sachs Group Inc. GS advancing 5.1%. The Goldman Sachs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The tech-heavy Nasdaq Composite ended at 10,433.65, soaring 2.2% or 226.02 points due to strong performance by large-cap tech stocks, marking its fifth consecutive winning streak. During intraday session the tech-laden index posted a new all-time high of 10,462.05.

Meanwhile, the S&P 500 climbed 1.6% to end at 3,179.72. The Consumer Discretionary Select Sector SPDR (XLY) and the Communication Services Select Sector SPDR (XLC) surged 2.4% and 2%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in positive territory while one in negative territory.

The fear-gauge CBOE Volatility Index (VIX) was up 0.9% to 27.94. A total of 10.91 billion shares were traded on Monday, lower than the last 20-session average of 12.9 billion. Advancers outnumbered decliners on the NYSE by a 2.54-to-1 ratio. On Nasdaq, a 1.88-to-1 ratio favored advancing issues.

Impressive Rally of Global Stock Markets

Major Asian stock markets rallied on Jul 6. In China, the Shanghai Composite index soared 5.7% to close at around 3,332.88, its highest since 2018 and best single-day performance since July 2015.  The Shenzhen component surged 4.1% to finish at about 12,941.72. The CSI 300, tracking the largest stocks listed on the mainland China, climbed 5.7% to close at around 4,670.09.

Meanwhile, Hong Kong’s Hang Seng index also advanced 3.8% to close at 26,339.16. The Nikkei 225 in Japan gained 1.8% to close at 22,714.44 while the Topix index rose 1.6% to finish its trading day at 1,577.15. South Korea’s Kospi appreciated 1.7% to close at 2,187.93.

The Dow, the S&P 500 and the Nasdaq Composite rallied 44.3%, 45.1% and 57.3% from their recent low recorded on Mar 23. Germany's DAX has skyrocketed more than 50% since Mar 18. The FTSE 100 of the U.K. has appreciated more than 25% since Mar 23. Japan's Nikkei 225 and South Korea's Kospi have advanced more than 20% from March lows.

Economic Data

The Institute of Supply Management reported that the services PMI jumped 57.1% in June from 45.4% in May, marking the single largest increase of the index since its inception in 1997 and the highest reading since February. The consensus estimate was 50.1%. Notably, any reading above 50 means expansion of services activities.

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