Yahoo Finance Dow, S&P 500 hit 3-month high as investors look past riots
U.S. equity markets rallied Tuesday as investors focused on reopenings and looked past the national unrest after President Trump threatened to deploy the military to quell violence and looting in cities across America following the death of a black man in police custody in Minneapolis.
The Dow Jones Industrial Average rose 268 points, or 1.05 percent, while the S&P 500 gained 0.82 percent, both hitting three-month highs. The Nasdaq Composite rose 0.59 percent.
Business owners across Midtown Manhattan were left cleaning up storefronts Tuesday morning after ransacking that began before the 11 p.m. ET curfew and continued throughout the night. Meanwhile, police officers were shot in Las Vegas and St. Louis.
RIOTS PUT BRAKES ON US ECONOMY'S CORONAVIRUS RECOVERY
"I have recommended every governor deploy the National Guard in sufficient numbers to dominate the streets," Trump said, adding that he will dispatch “thousands and thousands of heavily armed soldiers and military personnel" to stop the violence, if necessary.
Trump lashed at the rioters that damaged Macy's on 34th Street in a tweet as shares of the retailer closed higher.
Looking at stocks, gun-related companies surged amid the civil unrest.
Elsewhere, LVMH's $16 billion planned acquisition of Tiffany may be losing its luster. Women's Wear Daily reported the deal is on the rocks.
Southwest Airlines offered extended buyout packages and paid leave to employees as it grapples with a 30 percent drop in flight capacity. Other heavily beaten-down airlines and cruise operators also gained.
Meanwhile, Moneygram was approached by rival Western Union about a deal, according to a Bloomberg report.
On the earnings front, Dick’s Sporting Goods swung to a first-quarter loss as stay-at-home orders aimed at slowing the spread of COVID-19 shuttered stores during the final weeks of March.
West Texas Intermediate crude oil jumped 1.83 percent to $36.09 a barrel, while gold fell 0.73 percent to $1,725.20 an ounce.
U.S. Treasurys were little changed, with the yield on the 10-year note at 0.679 percent.
Germany’s DAX paced the gain in Europe, soaring 3.75 percent, as traders returned from a holiday weekend while France’s CAC and Britain’s FTSE climbed 2.02 percent and 0.87 percent, respectively.
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In Asia, Japan’s Nikkei added 1.19 percent, Hong Kong’s Hang Seng advanced 1.11 percent and China’s Shanghai Composite edged up 0.2 percent.
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