Stocks opened in negative territory as the market digested some of its gains from the massive rally on Friday. The averages saw their lows shortly after the open and then began to toward the flat line. The Dow was helped by shares of Walmart (WMT), which were higher following better than expected earnings. The Nasdaq was the first of the major averages to hit positive ground, but all three eventually tacked on gains that extended last week’s rally and the best weekly performance of the year for the market.
ECONOMIC EVENTS: In the U.S., the NAHB housing market index rose 4 points to 62 in February, which was better than expected. In trade news, the U.S. is pressing for a stable yuan as part of resumed trade discussions with China, according to Bloomberg.
TOP NEWS: Shares of Walmart rose 2% after the company reported better than expected sales and earnings for the fourth quarter, including U.S. comp sales growth of 4.2%. The retail giant also reiterated its FY20 guidance and raised its annual dividend to $2.12 from $2.08 per share. Investors hopeful that Walmart's good news was a harbinger of a good report to come from Target (TGT) also bid the rival big box store operator's shares up 1.5%.
Shares of Intercept Pharmaceuticals (ICPT) jumped following the open bell after the company said its experimental medicine to treat the fatty liver disease known as nonalcoholic steatohepatitis, or NASH, met one of two co-primary endpoints in a Phase 3 clinical trial. However, the stock gave up much of its early gains, advancing 6% for the session following the study data report.
Meanwhile, Ford (F) shares were 3% higher after the auto giant announced it will exit the commercial heavy truck business in South America. The company said that, in connection with the announcement, it expects to record pre-tax special item charges of about $460M.
Additionally, shares of Caesars Entertainment (CZR) jumped 5% after Carl Icahn disclosed a 9.78% in the casino operator, calling for the board to conduct a "strategic process to comprehensively assess the best path forward" for the company and potentially put the company up for sale.
MAJOR MOVERS: Among the noteworthy gainers was Kraton (KRA), which jumped 25% after its board initiated a process to review alternatives for its Cariflex business. Also higher was Superior Energy (SPN), which gained 24% after reporting quarterly results.
Among the notable losers was Windstream (WIN), which plunged 61% after a court ruled that the company defaulted on its bonds in 2015 by spinning off Uniti Group (UNIT). Uniti shares dropped 37% after the news. Also lower was Tile Shop (TTS), which fell 16.5% after reporting quarterly results.
INDEXES: The Dow rose 8.07, or 0.03%, to 25,891.32 , the Nasdaq gained 14.36, or 0.19%, to 7,486.77 , and the S&P 500 advanced 4.16, or 0.15%, to 2,779.76 .
Walmart
+2.23 (+2.23%)
Target
+1.06 (+1.47%)
Intercept
+6.54 (+5.90%)
Ford
+0.29 (+3.40%)
Caesars
+0.46 (+5.03%)
Kraton
+7.145 (+24.47%)
Superior Energy
+1.04 (+23.48%)
Windstream
-2.07 (-61.42%)
Uniti Group
-7.5 (-37.50%)
Tile Shop
-1.2 (-16.19%)