A record retail sales number plus positive news on a coronavirus treatment gave markets reason to be very positive. The Dow Jones initially jumped over 500 points at the start however it has come back slightly. News out of China that Beijing will shut down all schools amid a resurgence in Covid-19 cases. The U.S. government reported a record 17.7% increase in retail sales for May. Economists polled by Dow Jones expected a gain of 7.7%.
Adding to the market moving higher, multiple reports said dexamethasone — a widely available drug — can help critically ill coronavirus patients. The treatment reportedly reduced Covid-19 deaths in hospitalized patients by up to one third. Also, Bloomberg News is reporting that the Trump administration is drawing up a $1 trillion infrastructure proposal. The report said a preliminary version being prepared would set aside the majority of the money for traditional infrastructure projects such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband.
The Canadian dollar has not moved which is unusual given the positive economic news oil prices are , it looks like to Canadian dollar is tied closer to oil prices rather than the U.S. economy. Oil is basically unchanged as traders believe that the resurgence of coronavirus cases in China will have an impact on world demand. Saudi Arabia has cut back on oil production to the point that it has cut off the United States, delivery levels are below 133,000 barrels a day, the impact has yet to affect U.S. oil prices, analysts believe it will be some time for the market to re-balance to appropriate levels.