Stocks are continuing to find support from recovery hopes as the economy reopens. Massive stimulus, both implemented and planned, keeps providing a strong tailwind for stocks despite the escalating spat between the U.S. and China and civil unrest that continues in the form of protests in major American cities. The latest turn in the fight with China - a report that the Trump administration plans to announce plans to ban Chinese passenger carriers from flying to the United States starting in mid-June - has not slowed the rally that has kicked off June.
ECONOMIC EVENTS: In U.S. data, ADP reported private payrolls declined 2.76M in May, which wasn't as weak as the market feared. Markit's final services PMI was revised up to 37.5 from the 36.9 flash reading for May. The ISM services index rose 3.6 points to 45.4 in May, rebounding from an 11-year low of 41.8 in April. Factory orders plummeted a record 13.0% in April after plunging 11.0% in March, though this drop was also better than feared.
TOP NEWS: Shares of Zoom Video (ZM) are 5% higher near noon after what Wall Street analysts called the "greatest quarter in enterprise software's history" and "easily the most stunningly positive quarter" in 18 years. Due to accelerating adoption in the work from home environment, all metrics showed material upside against consensus expectations and the company's fiscal year revenue guidance doubled the consensus estimate.
Crowdstrike (CRWD), another beneficiary of the shift to a work from home environment, said along with its report of better than forecast results that it believes "the rapid shift to a remote workforce has helped increase" its leadership. Shares of Crowdstrike are up 5% at midday following last night's quarterly report from the cybersecurity company.
Warner Music Group (WMG) priced its 75 million share initial public offering at $25 per share, valuing the record label at $12.75B. The stock opened at $27. In other IPO news, Pliant Therapeutics (PLRX) priced 9 millions shares at $16, which was the high end of the expected range, and then opened for trading at $25 per share.
MAJOR MOVERS: Among the noteworthy gainers was Cheesecake Factory (CAKE), which rose 20% after announcing approximately 25% of the company's restaurants across its concepts, including 34 Cheesecake Factory restaurants, have reopened dining rooms with limited capacity. Also higher was Criteo (CRTO), which gained 16% after it reported that May revenue was "better than expected."
Among the notable losers was Frontline (FRO), which slid 2% after it launched an at-the-market equity offering. Also lower was Pilgrim's Pride (PPC), which plunged after a federal grand jury in the U.S. District Court in Denver, Colorado, returned an indictment against four executives - including Pilgrim's CEO Jayson Penn - for their role in a conspiracy to fix prices and rig bids for broiler chickens.
INDEXES: Near midday, the Dow was up 394.96, or 1.53%, to 26,137.61, the Nasdaq was up 46.91, or 0.49%, to 9,655.28, and the S&P 500 was up 32.73, or 1.06%, to 3,113.55.
Zoom Video
+11.46 (+5.51%)
Crowdstrike
+4.605 (+5.00%)
Warner Music
+ (+0.00%)
Pliant Therapeutics
+ (+0.00%)
Campbell Soup
-3.01 (-5.79%)
Cheesecake Factory
+4.01 (+19.15%)
Criteo
+1.79 (+16.01%)
Frontline
+0.495 (+6.45%)
Laredo Petroleum
-2.86 (-14.12%)
Pilgrim's Pride
-2.89 (-13.84%)