Stocks recovered some of their recent losses after China took steps to stabilize its currency, calming some of the trade war fears that fueled yesterday's year-worst performance for the major averages. China fixed the yuan at stronger than 7 per dollar, though the U.S. Treasury Department formally labeled the country as a currency manipulator on Monday night after President Trump called the country the same earlier yesterday. The U.S. still plans to host China for trade talks in September, according to Economic Council Director Larry Kudlow, but a lot can happen between now and then.
ECONOMIC EVENTS: In the U.S., the JOLTS report showed job openings fell 36,000 to 7.35M in June.
TOP NEWS: Take-Two Interactive (TTWO) was among the best performers on the S&P, rising almost 8% after strength in "Grand Theft Auto Online" and "NBA 2K" drove a "beat and raise" report from the game maker.
Conversely, International Flavors & Fragrances (IFF) dropped almost 16% after reporting results and cutting its fiscal year outlook. Of note, IFF said last night in its earnings release that the company was made aware, during the integration of Frutarom, of allegations that two Frutarom businesses operating principally in Russia and Ukraine made improper payments to representatives of a number of customers.
Drug distributors McKesson (MCK), Cardinal Health (CAH), and AmerisourceBergen (ABC) have proposed paying $10B to settle claims over their roles in the U.S. opioid epidemic, Jef Feeley of Bloomberg reported. The companies made the verbal proposal as part of talks with a group of state attorneys general, according to Feeley, citing people familiar with the offer.
Meanwhile, shares of Novartis (NVS) fell 2.8% after the FDA revealed a data manipulation issue with the company's recently approved gene therapy Zolgensma. FDA Commissioner Ned Sharpless said via Twitter that Novartis may face civil and criminal penalties over the data integrity issue. Biogen (BIIB) and Ionis (IONS), whose Spinraza drug competes with Novartis' Zolgensma, rose a respective 2.1% and 3.3% after the news.
Additionally, DuPont (DD) shares were 3.7% higher after Bloomberg reported that the company is working with advisers to evaluate options for its nutrition and biosciences division, including a potential sale. Sources told Bloomberg that logical partners for a merger include International Flavors & Fragrances, Royal DSM NV (RDSMY), Kerry Group and Givaudan SA.
MAJOR MOVERS: Among the noteworthy gainers was Zagg (ZAGG), which rose 15.1% after Reuters reported that the company is weighing a sale after drawing buyout interest. Also higher after reporting quarterly results were EverQuote (EVER) and Shake Shack (SHAK), which gained a respective 49.2% and 17.9%.
Among the notable losers was Care.com (CRCM), which slid 24.4% after the company reported quarterly results and announced that it is searching for a replacement for CEO Sheila Lirio Marcelo. Also lower after reporting quarterly results were GreenSky (GSKY) and Avid Technology (AVID), which fell 34.4% and 36.7%, respectively.
INDEXES: The Dow rose 311.78, or 1.21%, to 26,029.52, the Nasdaq gained 107.23, or 1.39%, to 7,833.26, and the S&P 500 advanced 37.03, or 1.3%, to 2,881.77.
Take-Two
+9.19 (+7.97%)
IFF
-22.57 (-15.96%)
McKesson
-5.67 (-3.92%)
Cardinal Health
-2.64 (-5.80%)
ABC Rail Products
+ (+0.00%)
Novartis
-2.57 (-2.83%)
Biogen
+4.98 (+2.12%)
Ionis Pharmaceuticals
+2.02 (+3.26%)
DuPont
+2.5 (+3.79%)
DSM
+ (+0.00%)
Zagg
+0.88 (+14.57%)
EverQuote
+6.35 (+47.57%)
Shake Shack
+13.07 (+17.77%)
Care.com
-2.515 (-24.58%)
GreenSky
-3.62 (-34.71%)
Avid Technology
-3.54 (-36.65%)