Wall Street Headed Higher After A Pause On Tuesday
On Wednesday, the US stock market recovered from Tuesday's losses and opened higher, as White House economic adviser Larry Kudlow said businesses would not re-close to deal with a new coronavirus outbreak.
Kudlow said in an interview with CNBC that "the data shows a V-shaped recovery" of the economy, contradicting the words of Atlanta fed chief Raphael Bostic, who repeatedly warned earlier in the week that the economic recovery could stall due to a new surge in infection.
At 09:45 AM ET (13:45 GMT), the Dow Jones index rose 123 points, or 0.5%, to 26,014 points. The S&P 500 rose 0.7% and the Nasdaq Composite rose 0.9%. All three indexes suffered heavy losses on Tuesday, which interrupted their five-day growth.
Shares of insurance group Allstate (NYSE: ALL) fell 2.6%, hitting a new three-month low after it agreed to pay $4 billion in cash to buy its smaller rival National General (NASDAQ: NGHC), adding more than 60% to its closing price on Tuesday, making National General shares the most profitable.
And shares of Levi Strauss (NYSE: LEVI) fell 7.3% after reporting that the company's sales collapsed 62% in the three months to the beginning of June, forcing the retailer to cut about 15% of its staff.
Entertainment (NYSE: AMC) shares rose 4.3 percent after the Wall Street Journal reported that the company was in talks with creditors to avoid bankruptcy. The restructuring of the cinema operator's debt, proposed by its largest lender, is not yet liked by a group of other holders of its bonds.
Shares of hydrogen-fueled car maker Nikola (NASDAQ: NKLA) rose 24 percent, and Chinese automaker Nio (NYSE: NIO) rose 14 percent, to a historic high, after better-than-expected sales in the second quarter.
Newmont Goldcorp (NYSE: NEM) shares rose 1.9 percent to their highest level in seven weeks as the spot price of gold rose above $1,800 for the first time since 2001. At 10:15 AM ET (14:15 GMT), gold rose 1.0% to $ 1,813.41 a Troy ounce.