Tuesday's Stock Market Open: US Equities Mixed Despite Trump Threat To Use Military To Quell Riots

Update: 12:05 p.m. EDT:

U.S. stocks remained mixed at noon on Tuesday.

The Dow Jones Industrial Average gained 117.03 points to 25,592.05, while the S&P 500 rose 3.27 points to 3,059.00 and the Nasdaq Composite Index fell 42.85 points to 9,509.20.

In Europe markets closed higher, as Britain’s FTSE-100 rose 0.87%, France’s CAC-40 gained 2.02% and Germany’s DAX jumped 3.75%.

Original story:

U.S. stocks opened mixed on Tuesday as investors ignored growing civil unrest and focus more on hopes for an economic rebound as more states reopen businesses.

The Dow Jones Industrial Average gained 121.61 points to 25,596.63, while the S&P 500 rose 7.67 points to 3,063.40 and the Nasdaq Composite Index slipped 1.32 points to 9,550.73.

Civil unrest continued unabated in cities across the U.S. despite heavy police presence and imposition of curfews.

On Monday evening, President Donald Trump threatened to deploy military if states and cities could not stop the protests, looting and violence.

“I am mobilizing all federal and local resources, civilian and military, to protect the rights of law-abiding Americans,” Trump said. “If a city or state refuses to take the actions necessary to defend the life and property of their residents, then I will deploy the United States military and quickly solve the problem for them.”

“The main focus once again appears on the longer-term prospects of the easing of lockdowns across the world, though if the violence on U.S. streets continues for much longer, U.S. investors might have to cope with a lockdown of a different kind, imposed by the National Guard,” said Michael Hewson, an analyst at CMC Markets.

The Congressional Budget Office warned on Monday that the covid-19 pandemic will wipe out $8 trillion from U.S. economy over next decade.

“Good news on vaccines helped stocks in May, but US-China relations & civil unrest could steal the spotlight in June,” said Lori Calvasina, RBC’s chief U.S. equity strategist. “The S&P 500 remains highly news flow driven.”

On Monday, China requested state-owned companies to stop purchases of soybeans and pork from the U.S.

“The disconnect between stocks and the economy generated widespread concern among some investors,” said Jeff Buchbinder, equity strategist for LPL Financial. “At the same time, reopening optimism and massive stimulus overshadowed some concerns about a second wave of COVID-19 infections and increasing U.S.-China tensions.”

Overnight in Asia, markets finished higher. China’s Shanghai Composite edged 0.2%, Hong Kong’s Hang Seng gained 1.11% and Japan’s Nikkei-225 rose 1.19%.

In Europe markets traded higher, as Britain’s FTSE-100 rose 0.96%, France’s CAC-40 gained 1.8% and Germany’s DAX jumped 3.53%.

Crude oil futures gained 0.79% at $35.72 per barrel, Brent crude gained 1.33% at $38.83. Gold futures edged up 0.25%.

The euro edged up 0.37% at $1.1176 while the pound sterling rose 0.56% at $1.2561.