Stocks opened sharply higher as they took their lead from overseas markets, which rallied overnight. The market was also in the midst of an oversold condition as recent losses pushed the Dow into correction territory. There was little in the way of economic data, but there were several data points over the weekend pointing to solid retail sales on Black Friday and indications of a strong follow up with today’s Cyber Monday sales.
ECONOMIC EVENTS: In the U.S., the Chicago Fed's National Activity index rose 0.1 point to 0.24 in October. In Europe, German IFO data for November came in pretty close to expectations. In Asia, Japan's manufacturing flash PMI for November slipped to 51.8 from a reading of 52.9 in October.
COMPANY NEWS: General Motors (GM) shares gained 6% after the automaker said it will "accelerate its transformation for the future" by closing five assembly plants in North America in 2019, including one each in Detroit, Ohio, Maryland, Michigan and Ontario, Canada. In a conference call discussing the plans, Chairman and CEO Mary Barra said GM is taking action while the company and the economy are strong. Commenting on GM's plans to cut salaried and salaried contract staff by 15%, Barra said there will be "voluntary and involuntary programs." She also said GM plans to double resources allocated to its electric and autonomous vehicle programs.
Meanwhile, electric car competitor Tesla (TSLA) was in focus after CEO Elon Musk told "Axios on HBO" that his company came close to "death" over the last year during the ramp up of the mass market Model 3. Tesla's potential death was within "single digit weeks" if the Model 3 ramp-up did not succeed, according to Musk.
Campbell Soup (CPB) and activist Third Point announced that they have reached an agreement, under the terms of which Campbell will increase the size of its Board from 12 to 14 members and add two new, independent directors from Third Point's proposed slate. Additionally, the parties have agreed that Third Point will provide input into Campbell's ongoing CEO search process.
MAJOR MOVERS: Among the noteworthy gainers was TransMontaigne (TLP), which rose 13% after it agreed to be acquired by an affiliate of ArcLight for $41 per common unit. Also higher was JinkoSolar (JKS), which gained 15% after reporting quarterly results.
Among the notable losers was Zafgen (ZFGN), which plunged 43% after it announced that the FDA placed a clinical hold on the investigational new drug application for ZGN-1061. Also lower was Plantronics (PLT), which fell 6% after Logitech (LOGI) confirmed it has ended discussions to buy the company. Logitech gained nearly 4% following the news.
INDEXES: Near midday, the Dow was up 287.90, or 1.19%, to 24,573.85, the Nasdaq was up 96.70, or 1.39%, to 7,035.69, and the S&P 500 was up 30.51, or 1.16%, to 2,663.07.
General Motors
+2 (+5.56%)
Tesla
+14.55 (+4.48%)
Campbell Soup
-0.83 (-2.05%)
TransMontaigne
+4.98 (+13.81%)
JinkoSolar
+1.495 (+16.14%)
Zafgen
-3.99 (-43.99%)
Symbol changed to POLY
-3.35 (-6.58%)
Logitech
+1.22 (+3.76%)