Stocks rise as Wall Street heads for a 3rd straight gain

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Stocks are drifting higher in morning trading on Wall Street Wednesday, putting the market on track for its third gain in a row.

The S&P 500 was up 0.5%, coming off the heels of a whiplash start to the year where its worst quarterly performance since 2008 gave way to its best quarter since 1998. Treasury yields and the price of oil also ticked higher following encouraging reports on the U.S. economy. But stocks in Europe and Asia were mixed after a series of reports underscored how fragile the recovery is.

United Airlines leaped 5.8% after it said it's adding nearly 25,000 flights flights to its August schedule, compared with July. The airline said that some fliers are starting to return to the skies for leisure trips, though its August schedule will still be about 60% below year-ago levels. Markets around the world roared back last quarter on hopes that economies are beginning to pull out of the severe, sudden recession that struck after governments shut down businesses in hopes of slowing the spread of the coronavirus. But a recent resurgence of COVID-19 cases, particularly in the U.S. South and West, has raised doubts about whether those hopes were premature or overdone.

But the June growth in ADP's payroll report wasn't as strong as economists expected. The U.S. government's more comprehensive monthly jobs report will arrive Thursday. Analysts said that while the data pointed in the right direction, it shows that an economic recovery from the pandemic will be slow.

 

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