Stocks opened sharply higher as investors calmed about the political turmoil in Italy. Bond yields settled down, helping the financials regain some of the ground they'd lost yesterday. The averages have tacked on gains throughout the morning, but have mostly moved in a narrow range. The move is broad-based, as each of the major averages is higher by roughly 1%. ECONOMIC EVENTS: In the U.S., ADP reported private payrolls increased 178,000 in May, missing the consensus forecast for 190,000 private job additions. First quarter GDP growth was revised down to a 2.2% rate in the second look at the indicator, versus the 2.3% rate from the advance report. Personal consumption expenditures were revised to a 1.0% gain compared to the 1.1% clip in the advanced reading. The goods trade deficit was $68.2B in the advance April report, slightly narrower compared to the revised $68.6B deficit in March. The Federal Reserve is scheduled to release its "Beige Book" at 2 pm ET. COMPANY NEWS: Shares of HP Inc. (HPQ) were 4% higher near noon after the company reported second quarter results that were mostly in line with analyst estimates and raised its fiscal 2018 earnings per share outlook. In addition, the company named Steve Fieler as its next chief financial officer, succeed Cathie Lesjak, who will assume the role of interim chief operating officer... Salesforce (CRM) shares rose nearly 3% after reporting better than expected quarterly results and raising its fiscal 2019 guidance for adjusted earnings and revenue. On its quarterly conference call, the company said it expects to reach $20B in sales "faster than imagined" and that it is "well-positioned" as the number one CRM software provider... Meanwhile, CNBC reported that Allergan (AGN) has completed its strategic review and plans to sell its women's health and infectious disease businesses. Allergan CEO Brent Saunders confirmed the plan at Bernstein's Annual Strategic Decisions Conference, saying that there is "no fire sale at Allergan" and that the company's deal track record is "pretty good"... Also on the M&A front, WellCare (WCG) shares were up more than 3.5% after it entered into an agreement to acquire Meridian Health Plan, Meridian Health Plan of Illinois, and MeridianRx for $2.5B in cash. The transaction is expected to close by the end of 2018, WellCare said. MAJOR MOVERS: Among the noteworthy gainers was Exact Sciences (EXAS), the maker of the Cologuard colon cancer screening test, which rose 11.5% after the recommended age for colon cancer screenings was lowered by the American Cancer Society. Also higher was Dick's Sporting Goods (DKS), which surged 25% after reporting quarterly results. Among the notable losers was Gogo (GOGO), which slipped 7% after Morgan Stanley analyst Simon Flannery lowered his price target on the shares to $3 from $7, citing the company's recently weak results and upcoming challenges. Also lower were Michael Kors (KORS) and DSW (DSW), which fell a respective 13% and 7% after reporting quarterly results. INDEXES: Near midday, the Dow was up 269.75, or 1.11%, to 24,631.20, the Nasdaq was up 70.58, or 0.95%, to 7,467.17, and the S&P 500 was up 30.42, or 1.13%, to 2,720.28.
