US open: Mixed start to trading as several states look to reopen
Wall Street trading got off to a mixed start on Tuesday as several US states began the process of reopening their economies.
As of 1540 BST, the Dow Jones Industrial Average was up 0.62% at 24,282.32 and the S&P 500 was 0.50% firmer at 2,892.92, while the Nasdaq Composite came out the gate 0.14% weaker at 8,718.00.
The Dow Jones opened 148.54 points higher on Tuesday, continuing on a rally started late last week after Donald Trump signed off on another economic stimulus package.
At the bell, investors were focussed on news that Alaska, Georgia, South Carolina, Tennessee, Texas and others were all in the process of going back to work. Donald Trump will also hold a joint press conference with Florida governor Ron De Santis at 1630 BST.
With certain industries set to benefit from the patronage of a wave of consumers, the likes of hotel group Wynn, mall operator Simon Property Group and department store Kohl's were all higher in early trading.
However, shares in tech giants Facebook, Alphabet, Amazon and Netflix were all down in early trade, dragging the Nasdaq into the red.
Oanda's Craig Erlam said: "Naturally the mood is helped by reports of Cities and States around the world either starting to reopen or at least planning for it.
"We appear to have moved beyond peak virus, for now, in the worst affected parts of Europe and North America, which is a relief, but any reopening is going to be extremely gradual so a return to normal is not going to happen any time soon. The 'new normal', that is."
Also boosting sentiment was an oil rebound, which saw West Texas Intermediate off the worst levels of the overnight session and up 5.40% at $13.47 a barrel.
On the macro front, America's shortfall on trade in goods with the rest of the world widened last month amid a sharp drop in exports.
According to the Department of Commerce, in seasonally adjusted terms, the deficit on the US trade in goods balance jumped by 7.2% month-on-month to reach $64.2bn.
Elsewhere, consumer confidence tumbled in April as measures aimed at curbing the spread of Covid-19 interrupted economic activity and threw millions of Americans out of work.
The Conference Board's consumer confidence index dropped to a reading of 86.9 in April from a downwardly revised 118.8 in March.
In corporate news, 3M suspended its full-year outlook after the coronavirus outbreak wreaked havoc on the group, while PepsiCo beat on earnings but also scrapped its forecast due to the pandemic.
Trade bellwether Caterpillar topped profit estimates in the first quarter of its trading year but also fell short on sales and opted not to issue guidance as a result of Covid-19 interruptions.