US open: Stocks record modest gains amid heightened US-Sino tensions
By Iain Gilbert
Date: Monday 01 Jun 2020
(Sharecast News) - Wall Street stocks recorded some small gains at the bell on Monday after last week's gains helped major averages record their first back-to-back monthly advances since late 2019.
As of 1525 BST, the Dow Jones Industrial Average was up 0.20% at 25,434.78, while the S&P 500 was 0.15% firmer at 3,049.01 and the Nasdaq Composite came out the gate 0.30% stronger at 9,518.52.
The Dow opened 51.67 points higher on Friday, reversing losses seen on Friday after Donald Trump said the White House was set to begin taking action to revoke Hong Kong's favoured trade status with the United States.
Trump said he would take steps to revoke the city's favoured trade status with the United States in response to a controversial new security law passed by Beijing that would effectively bar political protest in Hong Kong.
"I am directing my administration to begin the process of eliminating policy exemptions that give Hong Kong different and special treatment," the President said.
"My announcement today will affect the full range of agreements that we have with Hong Kong, from our extradition treaty, to our export controls and technologies," he added. "We will take action to revoke Hong Kong's preferential treatment as a separate customs and travel territory from the rest of China."
As far as Monday was concerned, market participants digested news that China had responded with comments from the foreign ministry that included several non-descript warnings of "countermeasures" if the US did not leave the matter alone.
Investors were also focussed on the reopening of US states following the coronavirus-related shuttering of their economies and a wave of protests across the country following the death of another unarmed African-American man in police custody.
Disappointing results from a trial of a breast cancer drug over at Pfizer also weighed on sentiment at the bell.
In terms of data, manufacturing output in the US continued to fall in May, with client demand weakening further and a negative outlook driving down employment.
US factories saw output slump to 39.8 in May, according to IHS Markit's Purchasing Managers' Index, which was up marginally from a print of 36.1 recorded in April.
Elsewhere, the Institute for Supply Management's purchasing managers' index fell more than expected last month to 41.5. Consensus estimates were for a reading of 43.5.
In the corporate space, companies reliant on the reopening of the US economy like Carnival, Norwegian Cruise Line, Royal Caribbean, Hilton Worldwide, Marriott International, American Airlines, Delta and United were all trading higher at the open.
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