Wall Street extended its rally into a second day Tuesday as more states eased restrictions on economic activity. Investors looked past weak economic data on services activity and trade.
Healthcare and tech stocks led the rally, driving the Nasdaq up more than 1%. The Dow and S&P 500 added less than a percent. The Nasdaq is now less than 2% below where it started the year.
DataTrek Research co-founder Nick Colas: SOUNDBITE: NICK COLAS, CO-FOUNDER, DATATREK RESEARCH (ENGLISH) SAYING:
"What we're seeing in the market today is continued cautious growing enthusiasm about how the U.S. economy will recover, how it will restart. And I think markets understand it will be a choppy road. But there is a a baseline of enthusiasm as economies reopen. Corporate earnings can recover, and the economy can recover."
Positive news on coronavirus drugs lifted healthcare shares. Pfizer and its German partner BioNTech have begun testing their experimental coronavirus vaccines on humans. Shares of Regeneron Pharmaceuticals also rose after the biotech company said its experimental antibody treatment may be available by the end of summer.
The easing of lockdowns boosted U.S. crude prices for a fifth straight day. That drove up energy shares such as Chevron and Phillips 66.
Shares of Norwegian Cruise Line sank. The world's third largest cruise operator raised doubts about its ability to remain afloat.
After the market closed, Disney shares fell. The global lockdowns triggered by the pandemic that shut its theme parks slashed quarterly profit by $1.4 billion. It's a stark contrast to three months ago, when the media and entertainment giant was boasting about a record year for its movie studio and the strong launch of its video streaming platform, Disney+.