Tuesday trading is over and it ended with a bang. All major US stock indexes recorded their best one-day percentage gain since January 4.
Now investors are turning their attention to what’s next.
The ADP employment report is due at 8:15 am ET, followed by the ISM non-manufacturing index at 10 am ET. The Fed’s Beige Book is due at 2 pm ET.
China’s general services PMI and Japan’s composite PMI are due over night.
European data will include the eurozone composite PMI and retail sales, as well as the UK’s services PMI.
EIA reports crude oil inventories
American Eagle Outfitters (AEO) and Campbell Soup (CPB) report earnings.
4:14 p.m. ET, June 4, 2019
Stocks log their second best day of 2019
From CNN Business' Anneken Tappe
US stocks recorded their second best day of the year today, rallying as hopes for a Federal Reserve rate cut took hold and worries about an escalating trade war took a backseat.
The Nasdaq Composite closed 2.7% higher, erasing its losses after a steep selloff on Monday driven by tech regulation worries.
Fed Chairman Jerome Powell said today that the central bank would continue to monitor developments on the trade front and act appropriately to ensure the US economy would continue expanding.
His comments followed remarks from St. Louis Fed President James Bullard, who said Monday that risks to economic growth posed by trade and weak inflation could warrant an interest rate cut soon.
Another mildly positive sign for markets: China’s commerce ministry said that the trade spat between Beijing and Washington should be resolved through talks, according to reports.
Verizon (VZ) was the only Dow component to finish the day lower. Its shares fell 0.3%.
Mattel (MAT) led gainers in the S&P, climbing 11.7%, after announcing a licensing deal with Sanrio for Hello Kitty toys.
2:31 p.m. ET, June 4, 2019
Elizabeth Warren is calling for a lower dollar
From CNN Business' Anneken Tappe
Democratic presidential candidate Elizabeth Warren unveiled a plan to create jobs and "protect the interest of American workers" in a Medium post today, and it includes actively managing the US dollar lower.
Warren named the strong dollar one of the most important factors in the US trade deficit, and blamed it for weak exports.
"Other countries have actively managed the value of their currency to boost exports and develop their domestic industries," Warren wrote. "And foreign investors and central banks have driven up the value of our currency for their own benefit."
President Donald Trump holds similar beliefs. Last year, he called China and the European Union, among others, currency manipulators who were devaluing the yuan and the euro. The US Treasury refrained from officially giving them that label.
A weaker currency makes a country's goods cheaper on the global market.
The dollar is a free floating currency, unlike the Chinese yuan, for example, which only fluctuates in a defined range. Turning the buck into a managed currency would be a huge change.
The ICE US Dollar Index, which measures the greenback against six rivals, rose more than 4% last year, according to Refinitiv. It was driven higher by the Federal Reserve's continuous interest rate increases, as well as the belief that in a full-blown trade war, the US economy would be the least badly hit versus its peers. Indeed, during some of the trade war flare-ups, the dollar has proven to be a kind of safe haven for investors. This is also in part thanks to the strength of the US economy.
In 2019, the index is up 0.9% so far. For reference, back in 2017, it dropped some 10%.
12:56 p.m. ET, June 4, 2019
Dow on track for its best day since February. Nasdaq is out of correction territory
From CNN Business' Anneken Tappe
US markets are making a turnaround after the Federal Reserve indicated that it would keep the expansion going however possible.
The Dow is up about 400 points, or 1.6% — its best day since mid-February. The Nasdaq also moved back out of correction territory after a miserable Monday.
The Nasdaq Composite dropped Monday on worries about a possible regulatory crackdown on big tech companies. The index was up about 1.9%, erasing all of the previous day's losses.
The S&P 500, meanwhile, was up 1.5%, marking its best one-day gain since January 30.
Just last week, this picture looked substantially different. The trade war has put pressure on equities. Proposed tariffs on Mexican imports to the United States are set to go into effect Monday.
Toymakers Hasbro (HAS) and Mattel (MAT) are sparking joy with investors thanks to new deals and partnerships, our Paul R. La Monica notes:
Hasbro is up 26% for the year.
Mattel is up 7% year to date.
11:03 a.m. ET, June 4, 2019
Airline stocks jump after Delta releases strong passenger numbers
From CNN Business' Jordan Valinsky
If May is any indication, it might be a strong travel season for US airlines.
Delta (DAL) stock is up 3.5% after it released robust passenger numbers for the month.
The carrier said it flew 18.1 million passengers — a record amount for May. Delta also said that the Friday before Memorial Day was its busiest single day ever, when roughly 667,000 passengers flew on the airline.
Other airlines stocks are also taking off: American Airlines (AAL) is up 4.4%, Southwest (LUV) is up 3.2% and United (UAL) is up 2.5%.
11:15 a.m. ET, June 4, 2019
Powell says Fed 'will act as appropriate' to sustain economic growth
From CNN Business' Anneken Tappe
Federal Reserve Chairman Jerome Powell said the central bank would continue to watch developments on the trade front closely and act as appropriate to ensure sustained economic growth.
"We do not know how or when these issues will be resolved," Powell said of the trade war during a conference on monetary policy in Chicago.
On Monday, St. Louis Fed President James Bullard said that risks to economic growth from the trade turmoil and inflation below the Fed's 2% target could warrant an interest rate cut soon. This led stocks to turn higher.
Powell outlined three future challenges for the Fed, including its existing monetary policy strategy given the underperformance of inflation data, the central bank's toolkit, as well as its communication with the public.
Stocks are holding on to their gains after Powell's speech, with the Dow up 1%, or 246 points, the S&P 500 up 0.8% and the Nasdaq Composite up 0.9%.
11:16 a.m. ET, June 4, 2019
Stocks rally an hour into trading
From CNN Business' Anneken Tappe
An hour into the trading day, stocks are rallying. The Dow, S&P 500 and Nasdaq Composite are all more than 1% up from yesterday's close.
Only one Dow stock is down -- Coca-Cola (KO) -- and the index as a whole is up 1.4%, or some 350 points.
Earlier, Federal Reserve Chairman Jerome Powell said that the central bank was monitoring matters of trade closely and would act "as appropriate" to sustain economic growth in the United States.
In the S&P, toy makers Mattel (MAT) and Hasbro (HAS) are leading gainers. Both are up more than 5%.
The Nasdaq was dragged down by worries over a regulatory crackdown on tech companies yesterday but rebounded today. With the exception of Facebook (FB) big tech is back back in the green today.
9:34 a.m. ET, June 4, 2019
Stocks open higher, Nasdaq rebounds from Monday’s selloff
From CNN Business' Anneken Tappe
US Stocks started the day stronger on Tuesday, climbing across the board as investors set aside worries about the ongoing trade war.
The tech-heavy Nasdaq Composite started the day higher — recovering a bit after it fell 1.6% Monday. Investors were worried about a possible regulatory crackdown on big tech.
Cloud content company Box (BOX) was a notable underperformer in premarket trading and at the open, dropping more than 12% after slashing its revenue guidance.
Shares of Tiffany & Co. (TIF) slipped in premarket trading after the company reported a bigger-than-expected drop in sales, but rose about 5% at the open.
