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

Supporters gather during a rally against measures taken by government and health authorities to curb the spread of COVID-19 at the Whistle Stop cafe in Mirror Alta, on Saturday May 8, 2021. The Whistle Stop was shut down by AHS for not complying with COVID-19 rules. THE CANADIAN PRESS/Jason Franson
Police hand out tickets to dozens leaving anti-lockdown protest in Alberta

Hundreds gathered outside the Whistle Stop Café in the hamlet of Mirror, Alta.

Oval Race track at Central Alberta Raceway. (Photo Submitted)
Central Alberta Raceways in Rimbey delays opening after health restrictions expand

Central Alberta Raceways had originally planned to open for the season at the end of May

People line up outside an immunization clinic to get their Oxford-AstraZeneca COVID-19 vaccine in Edmonton, Tuesday, April 20, 2021. Alberta leads the Prairie provinces in being the first to take COVID-19 vaccine bookings for pre-teens. THE CANADIAN PRESS/Jason Franson
Alberta leads Prairie provinces in accepting COVID vaccine bookings for pre-teens

The province begins accepting appointments for kids as young as 12 starting today

Asymptomatic testing will now be available for "priority groups" who are most likely to spread the COVID-19 virus to vulnerable or at-risk populations. File photo by THE CANADIAN PRESS
File photo
Arrest made for armed robbery in Millet, Wetaskiwin RCMP continue to investigate

Wetaskiwin RCMP are investigating an armed robbery took place May 4, 2021 in Millet, Alta.

Dr. Karina Pillay, former mayor of Slave Lake, Alta., is shown at her medical clinic in Calgary on Friday, April 16, 2021. THE CANADIAN PRESS/Jeff McIntosh
10 years later: Former Slave Lake mayor remembers wildfire that burned through town

Alberta announced in 2011 that an unknown arsonist had recklessly or deliberately ignited the forest fire

The body of Brenda Ware, 35, was found along Highway 93 in Kootenay National Park on Thursday, May 6, 2021. (RCMP handout)
RCMP ask for tips after woman travelling from Alberta found dead in B.C. park

Brenda Ware was found along Highway 93 in the park, 54 kilometres north of the town of Radium

A caribou grazes on Baffin Island in a 2008 file photo. A last-ditch attempt to save some of Canada’s vanishing caribou herds is a step closer after a scientific review panel’s approval of a plan to permanently pen some animals and breed them to repopulate other herds. THE CANADIAN PRESS/AP-Kike Calvo via AP Images
Parks Canada captive caribou breeding proposal gets OK from scientific review panel

Wolf density in Jasper is low enough that the animals would not be expected to be a major threat

People pass the red hearts on the COVID-19 Memorial Wall mourning those who have died, opposite the Houses of Parliament on the Embankment in London, Wednesday, April 7, 2021. On May 3, the British government announced that only one person had died of COVID-19 in the previous 24 hours. THE CANADIAN PRESS/AP-Kirsty Wigglesworth
For a view of a COVID-19 future, Canadians should look across the pond

Britain, like Canada, is one of the only countries in the world to delay second doses for several months

Nuns of Mother Teresa’s Missionaries of Charity, carry some of her relics during a vigil of prayer in preparation for the canonization of Mother Teresa in the St. John in Latheran Basilica at the Vatican, Friday, Sept. 2, 2016. In which city did she do much of her charitable work? (AP Photo/Gregorio Borgia)
QUIZ: How much do you know about these motherhood issues?

In honour of Mother’s Day, take this 10-question quiz

Canada’s chief public health officer is reminding Canadians even those who are fully vaccinated are not immune from transmitting the COVID-19. THE CANADIAN PRESS/Adrian Wyld
Canada’s top doctor warns full vaccination does not equal full protection from COVID-19

Post-inoculation, Theresa Tam says the risk of asymptomatic infection and transmission is far lower but not obsolete

Jennifer Coffman, owner of Truffle Pigs in Field, B.C., poses beside her business sign on Thursday, May 6, 2021, in this handout photo. Her restaurant and lodge have been hit hard by a closure of a section of the Trans-Canada Highway and by the British Columbia government discouraging Alberta residents from visiting during the pandemic. THE CANADIAN PRESS/HO-Jennifer Coffman, *MANDATORY CREDIT*
‘Why we survive’: B.C. boundary towns struggle without Albertans during pandemic

Jennifer Coffman’s restaurant is located in the tiny community of Field, which relies on tourism

Most Read