Stocks are rising to end the week as market sentiment continues to find support from massive fiscal and monetary policy measures, as well as expectations that more stimulus is in the pipeline. China also indicated it will increase purchases of U.S. agriculture products, easing fears that trade frictions would pick up between the U.S. and China.
ECONOMIC EVENTS: In U.S. data, the current account deficit narrowed fractionally to $104.2B in Q1, which was close to expectations.
TOP NEWS: Shares of AMC Entertainment (AMC) were 3% higher near noon after the company announced last night that it will will resume operations of 450 U.S. theaters as part of a phased plan that is expected to bring the 600-plus U.S. theater circuit to nearly full operation leading into the opening of Disney's (DIS) "Mulan" on July 24 and Warner Bros.' (T) "Tenet" on July 31. The theater operator noted that, as part of its reopening plan, it is launching a "comprehensive health and sanitation program," and will impose seat capacity limitations in an effort to encourage social distancing. Meanwhile, AMC CEO Adam Aron told Variety that the company will not mandate that all guests wear masks when theaters reopen, saying the company "did not want to be drawn into a political controversy."
Marathon Petroleum (MPC) shares rose 4% after The Wall Street Journal reported that the company is in talks with potential suitors for its Speedway gas-station business, reviving a sale that fell apart in the early stages of the COVID-19 crisis. Potential buyers include Alimentation Couche-Tard (ANCUF), according to the Journal. Marathon indicated last year that the business could be worth $15B-$18B, the Journal said, noting that any deal is likely weeks away and that Marathon may choose to stick with a plan to spin off the business instead.
In earnings news, CarMax (KMX) shares fell 5% after the company reported lower-than-expected earnings for the first quarter, with total wholesale vehicle unit sales falling 47.6% year-over-year. Of note, CarMax CEO Bill Nash said he is "encouraged" by recent trends in May and June.
Meanwhile, shares of TrueCar (TRUE) rallied 6% after it noted in a slides presentation that vehicle demand spiked 19% from June 1-15.
MAJOR MOVERS: Among the noteworthy gainers was Niu Technologies (NIU), which rose 18% after Piper Sandler analyst Alexander Potter raised his price target on the shares to $24 from $11. Also higher was Dynavax (DVAX), which gained 10% after it announced that the first participants have been dosed in the Phase 1 clinical trial to evaluate Clover Biopharmaceuticals' vaccine candidate to prevent COVID-19.
Among the notable losers was BeyondSpring (BYSI), which slid 18% after its 1.93M share spot secondary offering priced at $13 per share. Also lower was At Home Group (HOME), which fell 4% after reporting quarterly results.
INDEXES: Near midday, the Dow was up 26.86, or 0.10%, to 26,106.96 , the Nasdaq was up 34.15, or 0.34%, to 9,977.20 , and the S&P 500 was up 4.70, or 0.15%, to 3,120.04 .
AMC Entertainment
+0.195 (+3.46%)
Disney
+0.11 (+0.09%)
AT&T
-0.115 (-0.38%)
Marathon Petroleum
+1.75 (+4.55%)
Use ANCTF
+ (+0.00%)
CarMax
-5.06 (-5.16%)
TrueCar
+0.155 (+5.52%)
Niu Technologies
+2.61 (+18.18%)
Dynavax
+0.58 (+9.46%)
BeyondSpring
-2.91 (-17.53%)
At Home Group
-0.24 (-3.12%)