Upbeat virus report spurs markets
Apple, Intel and Netflix score gains in strong day on Wall Street
Apple, Intel and Netflix were among Bay Area companies that joined in a broad stock market rally Tuesday fueled by reports of a positive treatment for coronavirus and a strong surge in U.S. retail sales in May.
Enthusiasm was stoked after researchers at Oxford University said the results of a trial using the steroid dexamethasone reduced death rates of patients treated with the medication by one-third. Researchers behind the trial called its results a “a major breakthrough” and that its inexpensive price makes it easy to get into widespread use.
Adding to the market’s sentiment were signs of confidence among consumers, as U.S. retail sales rose a record 17.7% in May as segments of the economy began reopening following two months of lockdowns aimed at slowing the spread of coronavirus.
With those two data points in hand, investors drove the Dow Jones Industrial Average up by 526.82 points, or 2%, to close at 26,289.98. The tech-heavy Nasdaq Composite Index climbed 1.8%, to 9,895.87, and the broad-based S&P 500 rose almost 2%, to end the day at 3,124.74.
Apple shares continued to flex their muscles ahead of the company’s annual developers conference, which starts on June 22, and rose 2.7%, to $352.08. The European Union said it has launched antitrust investigations into Apple’s App Store and Apple Pay digital payments platform.
Tesla, however, ended the day down by almost 1%, at $982.13 a share. Late Monday, Tesla cut $5,000 off the price of its Model S Long Range Plus car, and said that the EPA-rated range for the vehicle has increased to 402 miles on a single charge.
Intel shares edged up by 0.5%, to $60.40, but Nvidia was down by 1.2%, at $362.74 a share after Morgan Stanley analyst Joseph Moore cut his ratings on both semiconductor companies on concerns about how the chipmakers would benefit from a recovery in the U.S. economy.
Other Bay Area stocks that rose included Netflix, Facebook, Twitter and Alphabet.
Also adding to the day’s sentiment were reports that the Trump administration is considering a $1 trillion infrastructure package that would mostly be used for work on the nation’s roads and bridges, as well as 5G wireless network and rural broadband network development.