Closing Stock Market SummaryThe mega-cap stocks stole the show on Monday, powering the Nasdaq Composite to a 2.5% gain (and record close) and lifting the S&P 500 to a 0.8% gain. The Dow Jones Industrial Average (+0.03%) closed little changed, while the Russell 2000 declined 0.4%.
Amazon (AMZN 3196.84, +234.87, +7.9%) gained 8% after its price target was raised to a Street-high of $3800 at Goldman Sachs and Jefferies. Tesla (TSLA 1643.00, +142.16, +9.5%) and Microsoft (MSFT 21.60, +8.70, +4.3%) rallied ahead of their earnings reports on Wednesday. Alphabet (GOOG 1565.72, +50.17, +3.3%) and Apple (AAPL 393.43, +8.12, +2.1%) rose with the mega-cap trade.
In turn, the S&P 500 consumer discretionary (+3.1%), information technology (+2.6%), and communication services (+1.3%) sectors posted solid gains, but they were the only sectors to close higher today. The Philadelphia Semiconductor Index (+2.0%) also had a great day, reflecting an infatuation for growth stocks after falling out of favor last week.
Conversely, the energy (-1.7%), utilities (-1.4%), industrials (-1.2%), and consumer staples (-1.0%) sectors fell at least 1.0%. The Dow Jones Transportation Average declined 1.6%.
Investors were also provided with positive COVID-19 vaccine data from the U.S. collaboration between Pfizer (PFE 36.50, +0.25, +0.7%) and BioNTech (BNTX 88.20, +2.95, +3.5%) and the UK collaboration between AstraZeneca (AZN 58.68, -2.42, -4.0%) and the University of Oxford.
The broad market did not rally on the news this time around, evidenced by only three S&P 500 sectors closing higher and by declining issues outpacing advancing issues at the NYSE. The S&P 500, however, did finish above its June 8 closing level (3232.39) due to the strength in the mega-caps.
In M&A activity, Noble Energy (NBL 10.18, +0.53, +5.4%) agreed to be acquired by Chevron (CVX 85.27, -1.92, -2.2%) for $5 billion, or $10.38/share, in stock.
U.S. Treasuries finished little changed after trading near their flat lines all session. The 2-yr yield increased one basis point to 0.15%, and the 10-yr yield decreased one basis point to 0.62%. The U.S. Dollar Index declined 0.1% to 98.82. WTI crude futures gained 0.7%, or $0.27, to $40.83/bbl.
Investors did not receive any notable economic data on Monday and will not receive any reports on Tuesday, either.
- Nasdaq Composite +20.0% YTD
- S&P 500 +0.7% YTD
- Dow Jones Industrial Average -6.5% YTD
- Russell 2000 -12.0% YTD
Gapping down
Select ETFs showing early weakness:
- XLC -1.5%, VXX -1.2%, XLI -0.6%, XLF -0.5%, IWM -0.4%
Other news:
- NKLA -19.3% (files prospectus for issuance of up to 23,890,000 shares of common stock issuable upon exercise of warrants and for the offering and sale of up to 53,390,000 shares of common stock by selling securityholders)
Analyst comments:
- ACRX -8.7% (downgraded to Underperform from Neutral at Credit Suisse)
- URBN -3.3% (downgraded to Sell from Hold at Loop Capital)
- BTI -2.3% (downgraded to Hold from Buy at Jefferies)
- GDS -1.8% (downgraded to Sell from Hold at Deutsche Bank)
- ALGN -1.6% (downgraded to Underperform from Neutral at BofA Securities)
Gapping up
In reaction to strong earnings/guidance:
- PHG +6%, HAL +4.7%, LII +4.2%
M&A news:
- DNR +143.5% (receives corporate buyout offer for $1.20 per share)
- NBL +9.5% (to be acquired by Chevron (CVX) for $10.38/share)
Other news:
- BTAI +32.1% (announces BXCL501 met the primary and secondary endpoints of SERENITY I and SERENITY II)
- BNTX +11% (BioNTech and Pfizer (PFE) to supply 30 mln doses of mRNA-based vaccine candidate against SARS-CoV-2 to UK)
- ASMB +4.8% (Assembly Biosciences and BeiGene (BGNE) have entered into a collaboration in China for Assembly's portfolio of three clinical-stage core inhibitor candidates for the treatment of patients with chronic hepatitis B virus (HBV) infection)
- QDEL +4.4% (Quidel's Sofia SARS Antigen FIA receives CE Mark)
- BABA +3.8% (commenced the process of a concurrent listing and IPO on the Shanghai Stock Exchange's STAR board and The Stock Exchange of Hong Kong Limited)
- DGX +3.8% (receives emergency use authorization use specimen pooling with its proprietary molecular diagnostic test for COVID-19) LMNX +3.8% (receives Emergency Use Authorization from FDA for COVID-19 antibody test)
- OFIX +3.6% (receives FDA clearance and European CE Mark approval for the JuniOrtho Plating System)
- PFE +3.5% (BioNTech and Pfizer (PFE) to supply 30 mln doses of mRNA-based vaccine candidate against SARS-CoV-2 to UK)
- GRFS +3.5% (acquires Green Cross plasma fractionation facility for $460 mln)
- KPTI +3.5% (receives FDA acceptance of filing of supplemental NDA for XPOVIO as a new treatment for patients with multiple myeloma after at least one prior line of therapy)
- QTNT +3.1% (reported that an independent study conducted in Madrid, Spain has confirmed the high performance characteristics of the Company's MosaiQ COVID-19 Antibody Microarray)
- OSMT +3% (announces FDA user fee goal date of December 29, 2020 for arbaclofen extended release tablets)
- ORTX +2.9% (received both orphan drug designation and rare pediatric disease designation from the FDA for OTL-203 for the treatment of mucopolysaccharidosis type I (MPS-I))
- ASHR +2.7% (rising with Shanghai closing up 3% overnight)
Analyst comments:
- QEP +7.5% (upgraded to Neutral from Underweight at JP Morgan)
- DBX +3.8% (upgraded to Buy from Hold at Jefferies)
- LPI +2.1% (upgraded to Outperform from Mkt Perform at Raymond James)
- CTXS +1.8% (upgraded to Overweight from Equal Weight at Barclays)
- ZYXI +1.8% (initiated with an Overweight at Piper Sandler)
- APA +1.4% (upgraded to Outperform from Mkt Perform at Raymond James)
- CAH +1.2% (upgraded to Buy from Neutral at Guggenheim)
- MELI +1.1% (upgraded to Outperform from Neutral at Bradesco BBI)
Early premarket gappers
- Gapping up:
- DNR +95.7%, LMNX +12.9%, QTNT +11.2%, NBL +9.5%, ASMB +8.3%, BNTX +6.6%, PHG +5.8%, BABA +4.9%, QDEL +3.4%, PFE +3.3%, ASHR +2.4%, GRFS +2.1%, ERI +1.7%, JD +1.6%, TSLA +1.4%, DGX +0.7%, FXI +0.6%
- Gapping down:
- NKLA -17.7%, CALM -2.3%, XLC -1.5%, TWTR -0.9%, FB -0.9%, IWM -0.6%, XLF -0.5%, XLI -0.5%