U.S. stocks rose yesterday to start off the new month amid increasing hope of a successful reopening of the economy. Those gains come after back-to-back monthly increases for stocks.
Stocks closely linked to the economy reopening led the gains. Carnival, Norwegian, and Royal Caribbean were all up at least 7%. Hilton and Marriott International advanced 7.5%, and American, Delta, and United traded sharply higher.
American manufacturers are still struggling mightily from coronavirus-related shutdowns and the damage to global trade, but they showed faint signs of revival in May as most states loosened restrictions and people began returning to work. The Institute for Supply Management said its manufacturing index climbed to 43.1% last month from an 11-year low of 41.5% in April, suggesting the worst of the economic damage from the pandemic might be over.
The Commerce Department reported that spending for U.S. construction projects dropped a smaller than expected 2.9% in April. Analysts polled had forecast a 6.8% plunge due to the coronavirus pandemic. Residential construction sank 4.5% in April, but spending on construction projects outside the housing sector fell a much smaller 1.8%. Yet economists still expect construction spending to weaken since so many projects were planned before COVID-19 devastated the economy. Outlays are likely to soften further in June.
With Northwest Quadrant Wealth Management, I'm Tyler Simones