US Stocks end mixed as virus concerns resurface

The US equity market finished session mixed on Monday, 11 May 2020, as investors weighed the benefits of reopening economies against worries over returning of coronavirus cases. At closing bell, the Dow Jones Industrial Average fell 109.33 points, or 0.45%, to 24,221.99. The S&P 500 - a gauge of US retirement and education savings accounts - inched up 0.39 points or less than a tenth of a percent to 2,930.19. The tech-heavy Nasdaq Composite Index climbed 71.02 points, or 0.78%, to 9,192.34

Traders are considering efforts by nations who are in the process of slowly unwinding months-long lockdowns. Several states have begun resuming regular business activity to avoid additional layoffs and keep firms afloat. Some view the move as necessary to avoid a prolonged recession, while others see it as risking a dangerous second wave of coronavirus cases.

 

New York Governor Andrew Cuomo revealed that certain low-risk businesses and recreational activities can reopen statewide beginning May 15. Cuomo also said some upstate regions are ready to move into phase one of the state's reopening plan, which will allow them to resume manufacturing, construction and agricultural operations as well curbside pickup at retail stores.

There is expected to be some increase in COVID-19 cases in Georgia, Texas and other states that have moved more quickly to resume activity, but officials hope any increase will be manageable and will not require restrictions to be revived.

However, investors remained jittery about reopening the economy too soon, capping the broader market's upside momentum after South Korea warned of a new cluster of cases involving night clubs. China, Singapore and Japan also confirmed new cases. Data from Germany's public health agency also indicated coronavirus cases in the country are once again on the rise following recent steps to ease lockdown measures. The World Health Organization said that countries who have relaxed lockdown measures have seen a spike in coronavirus cases.

More than 4.1 million coronavirus cases have been confirmed globally, with 1.3 million of those infections coming from the U.S, according to data from Johns Hopkins University.

Airline stocks including United Airlines, Delta Air Lines, and American Airlines tumbled after United pulled back on a Friday debt offering.

Marriott International fell as it reported quarterly profits plunged more than 90% to US$31 million on the devastating effect of pandemic shutdowns on travel.

AMC Entertainment Holdings soared on reports that Amazon might invest in the ailing movie theater chain.

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