The Dow Jones was set to jump 700 points at the open on Monday after President Donald Trump expressed hope that the coronavirus health crisis was “leveling-off” in some of the hardest-hit U.S. states.
Wall Street’s main indexes fell more than 1.5% on Friday as the pandemic brought a 113-month expansion in U.S. employment to an end, a day after data showed weekly jobless claims surged to a record 6.65 million as drastic steps to save cash sparked mass staff furloughs.
Boeing Co said it was extending the suspension of production operations at its Washington state facilities and it would stop paying about 30,000 workers this week.The planemaker’s shares were up 5.6% in premarket trading after falling more than 60% this year. New York, the country’s biggest hot spot, reported on Sunday that for the first time in a week virus-related deaths in the state had fallen slightly from the day before.
Wall Street’s fear gauge fell to its lowest in two weeks. “Seeing signs of stabilization in New York City is probably the most important thing given the amount of capital that’s controlled through managers that live in the area,” said Thomas Hayes, managing member at Great Hill Capital LLC in New York. “It’s a tremendous relief for the market (but it’s) not to say that we’re through the woods yet, because we’re going to have a tough week or two ahead.”
The S&P 500 has lost more than $7 trillion since its mid February record high in a 27% plunge marked by wild day-to-day price swings, as the novel coronavirus spread deeper in the United States and wreaked economic havoc. Profits for S&P 500 firms are expected to drop in the second quarter and investors fear more dire forecasts as demand across sectors including airlines, luxury goods and industrials
At 08:27 a.m. ET, Dow e-minis were up 719 points, or 3.43%, S&P 500 e-minis were up 86 points, or 3.46% and Nasdaq 100 e-minis were up 273.5 points, or 3.64%. Goldman Sachs was one of the top gainers among Dow components, rising nearly 4%, as Wall Street’s big banks
tracked U.S. Treasury yields higher.
Delta Airlines fell more than 6% as Warren Buffett’s Berkshire Hathaway Inc cut its stake in the company, while Citigroup and JPMorgan cut their price targets on the stock. Shares of American Airlines and United Airlines also fell more than 2%.
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