Stocks opened sharply higher on optimism surrounding the trade talks with China, but drifted off their best levels. By midday, the Dow had given up all its gains and almost crossed into negative ground, but the buyers came in and pushed the blue chip index back to higher levels. The market drifted into the close as the news flow slowed, and the volume dried up. Oil prices lost ground, closing down roughly 2.5% and back below $56 a barrel.
ECONOMIC EVENTS: In the U.S., personal income climbed 1.0% in December, and fell 0.1% in January, with a 0.5% decline in December spending. Markit's manufacturing PMI dropped 1.9 points to 53.0 in February, compared to a 53.7 preliminary reading for the month. The U.S. ISM fell to a 2-year low of 54.2 in February, after a January pop to a robust 56.6 reading. The University of Michigan consumer sentiment reading bounced to a downwardly-revised 93.8 in February. This compares to a preliminary 95.5 figure for February and a 91.2 reading in January. In energy news, Baker Hughes reported that the U.S. rig count is down 9 rigs from last week to 1,038 rigs
TOP NEWS: Shares of Gap Inc. (GPS) surged 16.2% after the apparel retailer said it plans to separate Old Navy into a standalone company. Meanwhile, the company also announced quarterly results and said it would close 230 Gap brand specialty stores over the next two years.
Tesla (TSLA) shares fell 7.8% after the car maker announced the long promised standard version of the Model 3 for $35,000, while also disclosing the company will not be profitable in Q1 and that it plans to move to an all-online sales model and close most of its existing showrooms.
In activist investor news, Caesars Entertainment (CZR) announced that it has entered into an agreement with Carl Icahn regarding, among other things, the membership and composition of the company's board of directors. Meanwhile, eBay (EBAY) entered into a cooperation agreement with affiliates of Elliott Management and affiliates of Starboard Value. eBay, which said it has worked collaboratively with Elliott, Starboard, and other significant shareholders, announced several new initiatives, including an operating review and the commencement of a strategic review of the company's portfolio of assets.
In IPO news, Lyft (LYFT) filed its S-1 with the SEC to begin the formal process of becoming a publicly traded company.
Meanwhile, Amazon (AMZN) shares rose almost 2% after the Wall Street Journal reported that the company is planning to open dozens of grocery stores across the U.S., which would be distinct from the e-commerce giant's Whole Foods. Shares of Kroger (KR) slid 4.5% following the report.
Additionally, Bloomberg reported that BP's (BP) sale of a collection of U.S. onshore shale assets valued at a combined $7B is moving forward, with suitors preparing offers for parts of the portfolio. KKR (KKR) is among suitors eyeing multiple assets, according to Bloomberg.
MAJOR MOVERS: Among the noteworthy gainers was Lexicon (LXRX), which rose 28% after it said that the EMA's CHMP adopted a positive opinion on the marketing authorization of Zynquista, developed by Sanofi (SNY) and Lexicon. Also higher were Puma Biotechnology (PBYI) and AMC Entertainment (AMC), which gained a respective 40% and 1% after reporting quarterly results.
Among the notable losers was ImmunoGen (IMGN), which dropped 46.8% after it said that the Phase 3 FORWARD I trial did not meet its primary endpoint of progression-free survival. Also higher were Nutanix (NTNX) and Intrexon (XON), which fell 32.7% and 36.5%, respectively, after reporting quarterly results.
INDEXES: The Dow rose 110.32, or 0.43%, to 26,026.32, the Nasdaq gained 62.82, or 0.83%, to 7,595.35, and the S&P 500 advanced 19.27, or 0.69%, to 2,803.76.
Gap
+4.11 (+16.17%)
Tesla
-25.05 (-7.84%)
Caesars
+0.35 (+4.06%)
eBay
+0.17 (+0.46%)
Lyft
+ (+0.00%)
Amazon.com
+31.32 (+1.91%)
BP
-0.07 (-0.16%)
KKR
+0.33 (+1.49%)
Lexicon
+1.47 (+27.68%)
Sanofi
+0.53 (+1.27%)
Puma Biotechnology
+11.21 (+40.37%)
AMC Entertainment
+1.95 (+13.89%)
ImmunoGen
-2.21 (-46.82%)
Nutanix
-16.46 (-32.83%)
Intrexon
-2.92 (-36.64%)