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Dow gains 125 points as investors weigh economic reopening, oil rallies

Carmen Reinicke   

Dow gains 125 points as investors weigh economic reopening, oil rallies

US stocks rose Tuesday as investors continued to weigh economic-reopening efforts worldwide.

Further, the Federal Reserve Bank of New York will begin buying corporate-bond exchange-traded funds Tuesday as a part of its expanded efforts to support the US economy and financial system in the coronavirus crisis. The central bank has never before purchased ETFs.

Here's where US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:

Read more: A group of healthcare stocks is enjoying the market's biggest post-crash comeback, and has returned 1,000% over the past decade. One investment firm explains why there's even more upside — and shares 3 companies it's buying.

Oil prices climbed, with West Texas Intermediate crude rising as much as 6.8%, to $25.79 a barrel following further production cuts from Saudi Arabia announced on Monday. International benchmark Brent crude climbed 3.6%, to $30.70 per barrel, at intraday highs.

Saudi Aramco, the most valuable company in the world, said Tuesday that it would maintain its dividend, even after profits fell 25% in the first quarter.

Read more: A real-estate investor who generates $165,000 in revenue a year lays out his 'absolutely perfect' strategy for aspiring entrepreneurs clamoring for passive income

A survey from the National Federation of Independent Business showed that while small businesses expect their sales to continue to slump amid the coronavirus pandemic, they think that the US economy will rebound in the next six months.

Still, data continues to show the impact of the coronavirus lockdowns on the economy. A measure of consumer prices, excluding food and fuel, dropped the most since 1957 in April. The basket of prices including the volatile food and fuel numbers slumped the most since 2008.

As the US weighs reopening, other countries have started to report second waves of cases, including Wuhan, China, Germany, and Russia. On Tuesday, Dr. Anthony Fauci, the nation's leading infectious disease specialist and a key member of the White House coronavirus task force, will reportedly testify about the risks of reopening the economy too soon, according to the New York Times.

Read more: BANK OF AMERICA: Investors should buy these 12 cheap stocks to bet on the coming US recovery — but they should steer clear of these 8 competitors

Read the original article on Business Insider

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