Stocks opened in positive territory as investors breathed a sigh of relief that the new round of tariffs on China was not as bad as expected. The averages continued to tack on gains throughout the day in a broad-based advance. Oil prices moved up more than 1% as supply concerns remain with Iranian sanctions due to go into effect this fall. The price of crude oil topped $70 before backing off and closing at $69.85 a barrel ahead of the API inventory report due out after the close. ECONOMIC EVENTS: In the U.S., the NAHB housing market index held steady at 67 in September after dipping 1 point to that mark in August. In trade news, President Donald Trump confirmed new tariffs will be placed on about $200B on Chinese imports, but at a rate of about 10% until the end of the year. That 10% tariff rate, to be implemented on Monday, will rise to 25% on January 1 if no new trade agreement is reached with China. COMPANY NEWS: Tesla (TSLA) shares fell 3% after Bloomberg said that the electric car maker, which is already reported to be facing a civil inquiry by the SEC, is also facing a criminal fraud investigation by the Department of Justice over public statements made by the company and CEO Elon Musk. In a statement provided to CNBC, Tesla said that it received a "voluntary request" for documents from the DOJ last month and has been cooperating with the government agency on the matter... Shares of Oracle (ORCL) slipped fractionally after the company reported what Jefferies analyst John DiFucci called an "about in line" quarter with "modest" 2% revenue growth in constant currency and earnings that grew more meaningfully behind a large share repurchase... FedEx (FDX) shares declined 5.5% following the company's mixed quarterly report. Despite the softer than expected start to the year, FedEx maintained its FY19 revenue growth guidance and increased its adjusted EPS range... Meanwhile, AbbVie (ABBV) shares were 3% lower after California Insurance Commissioner Dave Jones said he is suing the company, alleging that it gave illegal kickbacks to health care providers to prescribe Humira. Following the news, Citron Research tweeted that it was reiterating its $60 price target on AbbVie, saying the suit is "the least of the problems" for the company. MAJOR MOVERS: Among the noteworthy gainers was Viking Therapeutics (VKTX), which surged 87% after its Phase 2 study of a drug meant to treat a certain form of fatty liver disease met its primary endpoint. Also higher was Tilray (TLRY), which gained 29% after it announced approval by the U.S. Drug Enforcement Administration to import a cannabinoid study drug into the U.S. from Canada. Among the notable losers was Athenahealth (ATHN), which fell 5.5% following a report that Paul Singer's Elliott Management is backing away from its potential $160 per share bid for the company. Also lower was General Mills (GIS), which dropped about 8% after reporting better than expected quarterly profits but backing its previously issued full-year fiscal 2019 targets. INDEXES: The Dow rose 184.84, or 0.71%, to 26,246.96, the Nasdaq gained 60.32, or 0.76%, to 7,956.11, and the S&P 500 advanced 15.51, or 0.54%, to 2,904.31.
