Stocks end higher despite continued unrest spreading in U.S. cities
Equity markets in the U.S. extended recent gains as states and businesses continue to reopen and expectations rise that governments will add even more stimulus to the already sizable amounts previously implemented. The rally continues despite souring China relations and persistent civil unrest in the U.S. remaining headwinds.
ECONOMIC EVENTS: In energy markets, WTI crude oil prices hit a new three-month high ahead of the open. At Thursday's OPEC+ meeting it is widely expected that existing production cuts are likely to be extended beyond the end of June.
TOP NEWS: Share prices for gunmakers continued their recent surge amid social unrest and COVID-19 uncertainty. Yesterday, the FBI reported that National Instant Criminal Background Check System checks increased by an adjusted 75.2% year-over-year in May and Lake Street analyst Mark Smith has said he views the "unprecedented" firearm demand as likely to continue into June and through the presidential election this fall. Publicly traded gunmakers include Sturm, Ruger (RGR), Smith & Wesson Brands (SWBI), and Vista Outdoor (VSTO).
Shares of Western Union (WU) and MoneyGram (MGI) gained 11.2% and 29.7%, respectively, after Bloomberg's Ed Hammond reported last night that Western Union recently made an acquisition offer for it rival remittance firm.
Apple (AAPL) has cut the prices of the iPhone 11, iPhone 11 Pro, iPhone 11 Pro Max and iPhone SE in China ahead of a major online shopping festival held in June, CNBC reported.
Meanwhile, shares of Planet Fitness (PLNT) finished 9.4% higher after the company announced that it had reopened approximately 800 stores across 30 states and one province in Canada as of June 1. Following the news, Roth Capital analyst George Kelly argued that the update was a positive for other fitness stocks Nautilus (NLS) and Peloton (PTON).
MAJOR MOVERS: Among the noteworthy gainers was Wayfair (W), which rose 12.9% after Piper Sandler analyst Peter Keith raised his price target on the stock, saying industry checks with suppliers and retailers indicated "steady/strengthening" online sales for home furnishings in May compared to April. Also higher was Arena Pharmaceuticals (ARNA), which advanced 16.2% after Bristol-Myers (BMY) reported positive ulcerative colitis data that analysts said had positive read-through to Arena's own drug in the same class.
Among the notable losers was Evolent Health (EVH), which slid 6.7% after Cantor Fitzgerald analyst Steven Halper downgraded the stock to Neutral from Overweight, citing the company's announcement on Friday that Passport was not successful in its Kentucky Medicaid rebid. Also lower was Tiffany (TIF), which fell 8.8% after Miles Socha of Women's Wear Daily reported, citing sources, that LVMH's (LVMUY) takeover bid is "suddenly looking a lot less certain" after members of the board of the luxury giant met specifically to discuss the proposed deal given the deteriorating situation in the U.S.
INDEXES: The Dow rose 267.63, or 1.05%, to 25,742.65, the Nasdaq gained 56.33, or 0.59%, to 9,608.38, and the S&P 500 advanced 25.09, or 0.82%, to 3,080.82.