Markets

Wall Street rallies as Boeing shares jump

Boeing CEO on Q4 results and $ 6.5 billion charge

Wall Street rallies as Boeing shares jump

Indicators show that investors are optimistic about the prospects for economic recovery

Wall Street rallies on Wednesday amid a surge in Boeing share prices, signaling that investors are optimistic about the prospects for economic recovery after the coronavirus pandemic, while protests continue in the country..

Boeing shares rose 8.5 percent after it was revealed that billionaire Daniel Loeb’s hedge fund Third Point has acquired a stake in the company. The aviation concern showed the maximum growth among the Dow Jones index companies.

Microchip Technology shares jumped 10.6 percent after the company raised its current quarterly sales forecast to offset losses due to the pandemic..

The Nasdaq, which has enjoyed gains in 7 of its last 8 sessions, is now just 2 percent behind its mid-February record.

Data released on Wednesday shows signs of stabilization in the American labor market: National Employment Report from Automatic Data Processing showed that private companies laid off 2.76 million employees last month, while losses of 9 million were predicted..

On Friday, the Ministry of Labor will present a more comprehensive report on the labor market, and on Thursday – data on the number of applications for unemployment benefits.

Investor optimism is also supported by statistics from the Institute for Supply Management, which show that activity in the service sector in May has shifted from an 11-year low..

Index S&P 500 lags behind record numbers by 8 percent.

Markets have so far largely ignored tensions between the US and China and protests in the US over the death of African American George Floyd..

As of 12:50 pm, the Dow Jones Industrial Average rose 390.56 points, or 1.52 percent, to 26,133.21 points, S & P 500 – by 33.09 points or 1.07 percent to 3113.91 points, and the Nasdaq Composite – by 50.83 points or 0.53 percent to 9,659.20.

Taxi aggregator Lyft surged 10.2 percent after the company reported higher orders on its platform compared to April.

Cosmetics company Coty rose 7 percent after it was revealed it was in talks with TV star Kim Kardashian about a possible joint lineup.

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