US: Optimism on reopening economy boosts stocks

[NEW YORK] Wall Street stocks rose early Tuesday on optimism about the reopening of the US economy ahead of a trove of government data, including the May jobs report.

Markets were closed Monday for the Memorial Day holiday, the unofficial start of the summer season. Analysts are bullish on the hospitality industry's outlook this summer after many Americans curtailed vacationing in 2020 due to the coronavirus pandemic.

"There is a little reopening enthusiasm in the trading mix, as the Memorial Day weekend was accented with crowded beaches (where weather permitted), crowded airports, crowded malls, crowded restaurants and crowds at movie theaters again," said Briefing.com analyst Patrick O'Hare.

"We'll call it the normalcy premium, as there was a greater, feel-good appreciation for the sense of normalcy this year." About 15 minutes into trading, the Dow Jones Industrial Average was up 0.4 per cent at 34,681.00.

The broad-based S&P 500 advanced 0.4 per cent to 4,221.31, while the tech-rich Nasdaq Composite Index jumped 0.6 per cent to 13,823.87.

Tuesday's session is the first of the month and comes ahead of key reports on the manufacturing and services industries, as well the closely-watched Department of Labor employment report at the end of the week.

Analysts said lingering worries about inflation could limit the upside for stocks, while markets are also watching congressional talks on President Joe Biden's infrastructure package, with Democrats and Republicans still far apart.

AFP