On The Fly: Top stock stories for Tuesday
Stocks began the session in positive territory, came off their opening highs following the first hour of trading, then drifted in a narrow range. Although the indices closed well off their best levels, the market internals were decidedly positive. Solid data on new home sales in July helped buoy the market. Also helping were oil prices, which rebounded from their two-day losing streak amid reports suggesting that Iran may participate in talks about curbing production. ECONOMIC NEWS: In the U.S., new home sales increased 12.4% to a 654,000 rate in July versus expectations for a sale rate of 580,000 homes. Markit's flash manufacturing PMI fell to 52.1 in August, which was a bit below the 52.6 reading that was expected but still solidly in expansionary territory. The Richmond Fed manufacturing index fell 21 points to -11 in August. In Europe, Eurozone composite PMI was 53.3 in August from 53.2 in July. In Asia, Japan flash manufacturing PMI came in at 49.6 in August. COMPANY NEWS: Shares of Best Buy (BBY) jumped nearly 20% after the company reported better than expected second quarter results. The consumer electronics retailer also announced a rise in quarterly sales, helped by an increase in its online business... Shares of Mobileye (MBLY) and Delphi Automotive (DLPH) advanced 6.7% and 4.3%, respectively, after the companies announced a partnership to jointly develop self-driving technology... Shares of Tesla (TSLA) rose in afternoon trading following a tweet by CEO Elon Musk saying that the company planned to make a product announcement later in the day. However, Tesla would give up a big part of those gains after unveiling a 100 kWh battery option for the company's Model S and Model X, improving the range and driving performance of the vehicles. MAJOR MOVERS: Among the notable gainers was Tableau Software (DATA), which gained 13.4% after the data-visualization software maker hired Adam Selipsky, a former Amazon (AMZN) executive, as its new president and CEO. Also higher was Clovis Oncology (CLVS), which advanced over 27% after the company announced that the FDA has accepted its New Drug Application for accelerated approval of rucaparib and granted priority review status to the application. Additionally, Toll Brothers (TOL) rose 8.8% after an upbeat quarterly report and following the new home sales data released by the Commerce Department, which showed sales of newly built U.S. homes rose to the highest level in almost a decade. Among the noteworthy losers was J M Smucker (SJM), which dropped about 8% after the company missed analysts' quarterly revenue estimates and reduced its sales outlook for fiscal 2017. Also lower after results was Zoe's Kitchen (ZOES), which slipped more than 17% after the company reported in-line second quarter earnings but missed same-store sales expectations and lowered guidance. Additionally, Mylan (MYL) slid nearly 5% after two senators called out the company for price increases it has made for its EpiPen injection device for people with severe allergies. INDEXES: The Dow rose 17.88, or 0.1%, to 18,547.30, the Nasdaq gained 15.48, or 0.3%, to 5,260.08, and the S&P 500 advanced 4.26, or 0.2%, to 2,186.90.