Stocks in the U.S. bounced back from their selloff on Friday while China "caught down" with global markets as investors there got their first chance to sell since the outbreak of the coronavirus that continues gripping the Asian nation. According to the most updated data from the World Health Organization, there are 17,391 confirmed cases as of February 3, including 17,238 in China and 153 in the rest of the world. There have been 362 deaths attributed to the virus, but only one of those has occurred outside of China.
ECONOMIC EVENTS: In the U.S., Markit's PMI dipped 0.5 to 51.9 in the final January reading. That was down from December's 52.4, though it was revised higher compared to the 51.7 preliminary January print. ISM's manufacturing index bounced 3.1 points to 50.9 in January, which was much better than expected. Construction spending fell -0.2% in December following the 0.7% November gain
In Asia, China's CSI 300 reopened after the extended Golden Week holiday and plunged 7.9% as the index "caught down" to the recent declines in equities globally. Meanwhile, Japan's Nikkei 225 dropped 1.0%.
TOP NEWS: Shares of Nike (NKE) led the Dow with a 3.1% advance as the blue chip received some increased affection from Wall Street analysts. UBS analyst Jay Sole upgraded Nike to Buy from Neutral with a price target of $136, while JPMorgan analyst Matthew Boss added the stock to his firm's Analyst Focus List as a growth pick.
Hulu CEO Randy Freer is leaving the company as Disney (DIS) integrates Hulu's operations with its direct to consumer and international business, Reuters reported. Earlier last year, the media giant had said it would assume full control of Hulu in a deal with Comcast (CMCSA).
Goldman Sachs (GS) has started building technology that would allow it to offer loans to small and medium-sized businesses in the U.S. over Amazon's (AMZN) lending platform, The Financial Times' Laura Noonan reported, citing two people briefed on the matter.
Meanwhile, Tesla (TSLA) shares jumped 19.9% after Ark Invest said that based on its updated expectations for electric vehicle cost declines and demand, as well as its estimates for the potential profitability of robotaxis, its 2024 expected value per share for Tesla is $7,000. In addition, Argus analyst William Selesky raised his price target on the stock to $808 from $556 and kept his Buy rating on the stock following the company's "strong" fourth quarter.
MAJOR MOVERS: Among the noteworthy gainers was Insmed (INSM), which surged 40.6% after its Phase 2 WILLOW study of INS1007 met its primary endpoint. Also higher was PG&E (PCG), which rose 13.5% after the company submitted its Chapter 11 Plan of Reorganization testimony to state regulators.
Among the notable losers was Pacific Premier Bancorp (PPBI), which slid almost 1% after it agreed to acquire Opus Bank (OPB) in an all-stock transaction valued at $1B. Opus Bank shares were also fractionally lower after the news. Also lower were ON Semiconductor (ON) and Sysco (SYY), which fell a respective 14% and 6.6% after reporting quarterly results.
INDEXES: The Dow rose 143.78, or 0.51%, to 28,399.81, the Nasdaq gained 122.47, or 1.34%, to 9,273.40, and the S&P 500 advanced 23.40, or 0.73%, to 3,248.92.
Nike
+3 (+3.12%)
Disney
+2.985 (+2.16%)
Comcast
-0.54 (-1.25%)
Comcast
+ (+0.00%)
Goldman Sachs
+1.37 (+0.58%)
Amazon.com
-4.36 (-0.22%)
Tesla
+129.52 (+19.91%)
Insmed
+8.35 (+40.63%)
PG&E
+2.06 (+13.54%)
Pacific Premier
-0.32 (-1.07%)
Opus Bank
-0.17 (-0.64%)
ON Semiconductor
-3.23 (-13.96%)
Sysco
-5.49 (-6.68%)