Dow Closes Out Best Quarter Since 1987 - InvestingChannel

Dow Closes Out Best Quarter Since 1987



Stocks rose broadly on Tuesday as Wall Street wrapped up its best quarterly performance in decades.

The Dow Jones Industrials zoomed 217.08 points to end Tuesday at 25,812.88.

The S&P 500 gained 47.05 points, or 1.5%, to 3,100.29.

The NASDAQ Composite sprinted 184.61 points, or 1.9%, to 10,058.76.

The 30-stock Dow ended the second quarter with a 17.8% gain. That’s the average’s biggest quarterly rally since the first quarter of 1987, when it popped 21.6%.

The S&P 500 had its biggest one-quarter surge since the fourth quarter of 1998, soaring nearly 20%. Meanwhile, the NASDAQ jumped 30.6% for the quarter, its best quarterly performance gain since 1999.

Tuesday was also the last day of the month, with the major averages posting their third consecutive monthly gain. The Dow was up 1.7% for June. The S&P 500 climbed 1.8%, and NASDAQ was up 6%, month to date.

Shares of Facebook and Amazon rose 2.9% each to lead the gains Tuesday while Netflix advanced 1.7%. Micron also contributed to the gains, climbing more than 4% following the company’s better-than-expected earnings report. Micron also gave strong forward revenue guidance. Shares of Lululemon gained 6% on news it will acquire at-home fitness company Mirror for $500 million.

Those gains came amid a backdrop of increasing coronavirus cases in the U.S. and states attempt to reopen from the shutdown. U.S. governors are walking back or delaying reopening plans as COVID-19 cases climb around the country. New Jersey Gov. Phil Murphy announced the state will delay a resumption of indoor dining that was planned for Thursday.

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testified before the House Financial Services Committee. The joint hearing addressed the Fed and Treasury’s response to the coronavirus pandemic.

In remarks he delivered Tuesday, Powell said uncertainty reigns over the outlook for the economy in the wake of the coronavirus pandemic.

Mnuchin told Congress the economy is in a strong position to recover from the coronavirus.

Prices for the 10-Year Treasury slumped, raising yields to 0.66% from Monday’s 0.64%. Treasury prices and yields move in opposite directions.

Oil prices lost 32 cents to $39.38 U.S. a barrel.

Gold prices added $17.30 to $1,798.50 U.S. an ounce.

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