Stocks have been higher since the start of trading following the release of Huawei's CFO on bail and a Wall Street Journal article that China will consider rethinking its “Made in 2025” mandate in order to ease tensions with the U.S. The twin China news events has given the market a lift that has not faded yet at midday.
ECONOMIC EVENTS: In the U.S., the Consumer Prices Index was flat month-over-month in November, while the core rate edged up 0.2%, both of which matched forecasts. DOE inventory data showed a 1.2M barrel weekly decline in crude stocks, compared to expectations for a 3.2M barrel drawdown.
COMPANY NEWS: Lowes's (LOW), in a meeting with analysts and investors, reiterated its guidance for fiscal 2018, issued better than expected earnings guidance for fiscal 2019 and announced a new $10B share repurchase program. After resuming trading following a halt in anticipation of the guidance, Lowe's shares are up 3.5% near midday.
Moving in the other direction on the heels of its own financial meeting, Under Armour (UAA) Class A shares are down 8.5% after the company issued guidance for North America that disappointed investors.
Shares of Deutsche Bank (DB) are up 8% in New York trading after Bloomberg said that high-level discussions are being held among German government officials and bank executives to look at concrete ways the government can assist in a potential combination of Deutsche and the country's next largest lender, Commerzbank (CRZBY).
Tencent Music (TME) priced 82M shares in its much anticipated initial public offering and opened at $14.10 per share, above the IPO pricing of $13.00.
MAJOR MOVERS: Among the noteworthy gainers was Bausch Health (BHC), which rose 7% after it agreed to acquire Synergy Pharmaceuticals (SGYP) for roughly $200M in cash. Synergy, which initiated voluntary bankruptcy proceedings under Chapter 11 to facilitate the sale and address its debt obligations, has seen its stock plunge 61% to 13c a share after the news. Also higher was United Rentals (URI), which gained 9% after it backed its fiscal 2018 revenue guidance, provided fiscal 2019 guidance, and said it will resume its $1.25B share repurchase program this month.
Among the notable losers was Neurocrine (NBIX), which fell 20% after its Phase 2b T-Force GOLD study for valbenazine in pediatric Tourette Syndrome did not meet its primary endpoint. Also lower was Dave & Buster's (PLAY), which declined 10% after reporting quarterly results.
INDEXES: Near midday, the Dow was up 377.46, or 1.55%, to 24,747.70, the Nasdaq was up 145.44, or 2.07%, to 7,177.27, and the S&P 500 was up 41.41, or 1.57%, to 2,678.19.
Lowe's
+3.28 (+3.67%)
Under Armour
-1.76 (-7.95%)
Under Armour
-1.65 (-7.91%)
Deutsche Bank
+0.65 (+7.79%)
Tencent Music
+ (+0.00%)
Commerzbank
+ (+0.00%)
Bausch Health
+1.65 (+7.15%)
Synergy Pharmaceuticals
-0.1959 (-57.62%)
United Rentals
+9.12 (+8.95%)
Neurocrine
-16.87 (-19.68%)
Dave & Buster's
-5.31 (-10.40%)