Financials lift S&P 500, Dow despite record U.S. virus cases
(Reuters) - The S&P 500 and Dow rose in choppy trading on Friday, boosted by financial stocks but the sentiment was fragile as a record rise in coronavirus cases in the United States threatened to further damage Corporate America.
The United States registered the largest single-day increase in new COVID-19 infections globally for the second day in a row on Thursday. About 41 of the 50 U.S. states have reported an increase in cases over the last two weeks that has forced Americans to take new precautions, with several states backpedaling on reopening plans.
A slate of economic data, including a record monthly payrolls addition, has pointed to a revival in business activity in June, fueling the U.S. stock market’s stimulus-driven rally.
The S&P 500 has risen more than 40% from its March lows and stands about 8% below its record high hit in February.
A bright spot was data showing Gilead’s antiviral remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients in a late-stage study. Gilead’s shares rose 2.5%.
Bank of America Corp (BAC.N), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Goldman Sachs (GS.N) rose between 2.7% and 3.4% ahead of their financial results next week, which would mark the onset of the second-quarter earnings season.
Overall profits for S&P 500 firms are expected to plunge the most since the financial crisis, according to IBES data from Refinitiv.