Dow Notches Third-Straight Win as Bets on Faster Economic Recovery Continue – Investing.com

By Yasin Ebrahim 

Investing.com – The Dow climbed for the third-straight session as hopes of a faster economic recovery were given a boost on Wednesday amid signs the Covid-19 pandemic’s grip on the economy has passed.

The rose 2.05%, or 527 points, the gained 1.36%, while the added 0.78%.

With just days to go until Friday’s crucial nonfarm payrolls report, ADP (NASDAQ:) said that private payrolls fell by 2.76 million jobs in May, confounding economists’ for a drop of 9 million.

That marked a significant improvement from the 19.5 million job cuts seen in April, raising hopes the labor market losses have bottomed.

The services sector, which accounts for about two-thirds of overall economic growth, is also showing signs of life, with activity rising from the lowest level in 11 years in April.

 data for May showed a reading of 45.4, above forecasts for a reading of 44.

The duo of upbeat economic reports stoked investor hopes of a quicker economic rebound, underpinning cyclical sectors like financials and industrials.  

Financials jumped 4.4%, with banks leading the charge. JPMorgan (NYSE:NYSE:) was up 5.4%, Bank of America (NYSE:NYSE:) up 4.5% and Citigroup (NYSE:NYSE:) up 4.9%.

In industrials, Boeing (NYSE:) rallied 13% after reaching a compensation package and a new delivery deal with travel company TUI Group over the grounding of its 737 Max planes.

On the earnings front, Zoom Video Communications (NASDAQ:) jumped 6% after reporting first-quarter results that markedly beat expectations on the bottom and top lines as the pandemic spurred demand for its videoconferencing software.

Canada Goose (NYSE:) rose 18% after reporting a better-than-expected fiscal fourth-quarter profit. The outerwear retailer also said it would increase focus on direct-to-consumer sales in the early stages of the reopening phase.

Elsewhere, Warner Music (NASDAQ:) made a bright start to life as a publicly-traded company, rallying 21%. The music label company had priced its offering of 77 million shares at $25 per share.

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