Stocks rose on Tuesday following Monday's mixed session as investors weighed states' wide reopening optimism against grim economic data and coronavirus treatment hopes. Market participants looked to the restart strategies in states like Georgia, Florida and Texas, as well as the beginnings of California and New York, and bet on a coming boost to economic activity that will solve the growing financial crisis.
Yet, the bleak economic reports for April keep pouring in. The U.S. trade deficit widened to $44.4 billion in March due to a record drop in exports, according to the Commerce Department's report. ISM non-manufacturing purchasing managers' index (PMI) for April fell to its lowest level since March 2009. The report's reading of 41.8 for the March was a more than 10 point drop from March's 52.5, and was below the neutral level of 50, which indicates contraction. To make matters worse, IHS Markit's composite PMI sank to its lowest level on record for April, steeply declining to a reading of 27 from March's 40.9, signaling a second month of contraction.
"The slump in the business survey indicators to all-time lows in April indicates how the 4.8% rate of economic decline seen in the first quarter will likely be dwarfed by thats to come in the second quarter," Chris Williamson, chief business economist at IHS Market, said in a statement. "Measures to fight the COVID-19 outbreak mean vast swathers of the service sector has been especially hard hit by travel restrictions and social distancing, with temporary company closures and dramatically reduced demand resulting in an overall drop in activity of even greater magnitude than seen during the height of global financial crisis."
Here's how the market closed on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In Major Stock News, drugmaker Pfizer
In Stock Sector News, all but Financials, who declined -0.07%, ended Tuesday's session with performance gains. The positive gains were as follows: Health Care +2.1%%, Information Technology +1.42%, Utilities +0.93%, Real Estate +0.63%, Communication Services +0.62%, Industrials +0.43%, Consumer Discretionary +0.35%, Materials +0.30%, Energy +0.26% and Consumer Staples +0.13%.
In Commodity and Currency News, crude oil prices popped on Tuesday on future demand hopes, with West Texas Intermediate
As the market moves into the mid-week, investors will continue to focus on the coronavirus's business and economic impact. Quarterly earnings for Wednesday General Motors