All three of the major equity averages opened higher, but only the Dow was able to hold its gains throughout the session. The Nasdaq ended the day with modest losses as investors rotated out of technology and into financials and industrials. As the day progressed, trade fears surfaced again as the G-7 members prepare to meet. With the U.S. standing against the world, investors appeared to scale back positions ahead of the weekend meeting. ECONOMIC EVENTS: In the U.S., initial jobless claims dipped 1,000 to 222,000 in the week of June 2. Consumer credit grew $9.3B in April, versus the consensus call for growth of $14B for the month. COMPANY NEWS: Shares of McDonald's (MCD) rose 4% after the Wall Street Journal reported that the fast food giant is planning a fresh round of layoffs to further shrink its corporate structure... Allergan (AGN) shares gained 5% after Bloomberg reported last night that Carl Icahn, founder of Icahn Enterprises (IEP), has built a small stake in the drugmaker. The motivation of Icahn, who is joining other activists currently involved with Allergan, is not yet clear, nor is the size of his investment, said Bloomberg... Fortive (FTV) announced last night that it made a binding offer to Johnson & Johnson (JNJ) subsidiary Ethicon to purchase the Advanced Sterilization Products business for roughly $2.7B in cash. Fortive shares climbed 4% and while Johnson & Johnson shares closed fractionally higher... Meanwhile, Reuters reported that the U.S. Department of Justice is investigating how the proposed merger between T-Mobile (TMUS) and Sprint (S) could affect prices for smaller wireless operators... Additionally, Deutsche Bank (DB) was in focus after Bloomberg reported that the lender is looking to sell its portfolio of non-investment grade energy loans worth roughly $3B. Bloomberg also reported that Paul Achleitner, the bank's chairman, has spoken with top shareholders and German government officials about potentially merging with Commerzbank (CRZBY), though no deal appears imminent. MAJOR MOVERS: Among the noteworthy gainers was A.V. Homes (AVHI), which surged 29% to $21.25 after it agreed to be acquired by Taylor Morrison Home (TMHC) for $21.50 per share. Also higher were Zscaler (ZS) and Conn's (CONN), which gained a respective 23% and 25% after reporting quarterly results. Among the notable losers was MiMedx (MDXG), which fell 24% after the company announced it will restate certain historical financial statements and withdrew all prior financial guidance issued for 2018. Also lower was United Natural Foods (UNFI), which dropped 14% after reporting quarterly results. INDEXES: The Dow rose 95.02, or 0.38%, to 25,241.41, the Nasdaq lost 54.17, or 0.70%, to 7,635.07, and the S&P 500 declined 0.94, or 0.03%, to 2,771.41.
