Stocks soar as Trump weighs $1T infrastructure plan, retail sales rebound

By Jonathan Garber FOXBusiness

Retail sales climbed 17.7% in May.

U.S. equity markets soared Tuesday after a report that President Trump is considering a $1 trillion infrastructure plan and retail sales gained the most on record after a sharp drop in April.

The Dow Jones Industrial Average gained 818 points, or 3.2 percent, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite rose 2.78 percent and 2.33 percent, respectively.

The president’s proposal would allocate most of the money for projects like roads and bridges, but would also provide funding for 5G wireless infrastructure and rural broadband, according to Bloomberg, citing people familiar with the plan.

“Since he took office, President Trump has been serious about a bipartisan infrastructure package that rebuilds our crumbling roads and bridges, invests in future industries, and promotes permitting efficiency,” said White House spokesperson Judd Deere. No legislation has yet been passed.

Retail sales, meanwhile, jumped 17.7 percent in May, more than doubling the 8 percent increase that analysts surveyed by Refinitiv were anticipating, as stay-at-home orders eased and stores unlocked their doors. April’s 16.4 percent decline was revised to a drop of 14.7 percent.

Looking at stocks, department stores Macy’s and Nordstrom charged higher while home-goods store Bed Bath & Beyond and electronics retailer Best Buy also gained.

Travel-related companies continued to march higher as states forge ahead with their reopening plans. Both American Airlines and United Airlines announced on Tuesday morning that any customer who refuses to wear a mask while onboard will be restricted from future travel.

McDonald’s U.S. same-store sales fell 12 percent in the first two months of the second quarter, but showed improvement in May, down 5.1 percent. Global same-store sales were off 29.8 percent during the April and May period.

WW International, formerly known as Weight Watchers, announced COVID-19 pushed digital subscribers to a record 3.7 million users. Overall, the company had 4.9 million subscribers on June 6, up 7 percent from a year ago.

In tech, the European Union has launched two antitrust probes into Apple’s mobile app store and payment platform, examining whether they violated competition rules.

Oil and gas explorer Chesapeake Energy is preparing to file for bankruptcy as soon as this week, according to Reuters.

West Texas Intermediate crude oil tacked on 73 cents to $37.85 a barrel while gold climbed $7 to $1,734.20 an ounce.

U.S. Treasurys slid, causing the yield on the 10-year note to jump by 4.8 basis points to 0.75 percent.

European markets were higher across the board, with Germany’s DAX up 3.83 percent while France’s CAC and Britain’s FTSE gained 3.48 percent and 3.53 percent, respectively.

In Asia, Japan’s Nikkei soared 4.88 percent, Hong Kong’s Hang Seng rallied 2.39 percent and China’s Shanghai Composite added 1.44 percent.

Recent Posts

Recent Comments

NH POLITICIAN is a New Hampshire based media company specializing in the collection, publication and distribution of public opinion information, local, national and world news. Our team of reporters,...