U.S. stocks ended the day modestly higher on Tuesday, following a volatile Monday evening.
Dow futures had dropped as much as 400 points late Monday after White House trade advisor Peter Navarro appeared to say in a Fox News interview that the U.S. trade deal with China was “over.” Navarro later said that his statements were being taken out of context and that he was speaking about the lack of trust the U.S. has with China due to the coronavirus pandemic. President Donald Trump also tweeted that the deal was “fully intact.”
Stocks then rose as investors, reassured by the tweet and clarification and Trump’s tweet, turned their attention to improving economic data from Europe.
Flash purchasing managers indexes for June improved in the eurozone, Japan, and U.K., though most readings were still below the 50-mark, indicating deteriorating conditions. Boston Federal Reserve President Eric Rosengren told Yahoo Finance that failure to properly contain the Covid-19 outbreak means the second half of 2020 may be “more difficult than many people are anticipating.”
But following last week’s pattern, the boost of unprecedented fiscal and monetary stimulus continued to outweigh the negative news.
“Investors appear less worried about the increase in new coronavirus infections worldwide,” said Milan Cutkovic, market analyst at AxiCorp. “While the surge in new cases is somewhat worrying, the risk of a second lockdown is seen as low.”
Oil prices ticked down. The price of West Texas Intermediate crude settled down 0.9%, at $40.37 a barrel. Brent crude lost 1%, to $42.63 a barrel.
The price of gold continued to rise as the U.S. dollar fell. After notching its highest settlement value since 2012 on Monday, gold added another 0.9%, reaching $1,772.10 an ounce. The U.S. Dollar Index (DXY)—which measures the greenback against a basket of other currencies—lost 0.3%, and is down more than 6% since late March.
Starbucks (ticker: SBUX) shares ticked up 0.1% after the chain said it would soon launch its summer breakfast menu. It plans to offer an Impossible Breakfast Sandwich, which will use a plant-based breakfast patty made by Impossible Foods.
Apple (AAPL) shares closed up 2.1%, building on a 2.6% gain yesterday. Investors liked what they heard at the company’s annual conference for developers on Monday. Among other updates and announcements, the company said that it plans to move away from Intel (INTC) processors in favor of Apple-designed chips for its Mac hardware. Intel shares (INTC) closed down 0.3% on Tuesday, as the move had been a long time coming.
Salesforce.com (CRM) shares slipped 1.4%. The company said it is joining with Siemens to create “safe, connected workplaces for the future.” Features would include things like touchless entry and the ability to reserve desks.