Stocks were rising for most of the morning, but seemed to lose some momentum after Florida reported another record daily increase in COVID-19 cases and Apple (AAPL) announced it was re-closing some of its stores in that state and several others that have seen virus resurgences. Some of the early strength was likely attributable to China indicating it will increase purchases of U.S. agriculture products, easing fears that trade frictions would pick up between the U.S. and China. The major averages bounced a bit off their afternoon lows, allowing the Nasdaq to record it sixth straight winning session.
ECONOMIC EVENTS: In U.S. data, the current account deficit narrowed fractionally to $104.2B in Q1, which was close to expectations. In energy news, Baker Hughes reported that the U.S. rig count is down 13 rigs from last week to 266.
TOP NEWS: Apple shares closed fractionally lower after the company told Bloomberg in an emailed statement that it is shutting 11 U.S. retail stores again due to a spike of COVID-19 cases in certain areas across the country. The closures will affect stores across Florida, Arizona, North Carolina, and South Carolina.
Shares of AMC Entertainment (AMC) were 2% lower 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. AMC CEO Adam Aron told Variety that the company would not mandate that all guests wear masks when theaters reopen, saying the company "did not want to be drawn into a political controversy." Aron said in a statement later on, however, that the company has reversed course and will require guests to wear masks at theaters.
Marathon Petroleum (MPC) shares fell fractionally 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 6.2% 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 3.6% 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 11.5% after Piper Sandler analyst Alexander Potter raised his price target on the shares to $24 from $11. Also higher was Dynavax (DVAX), which gained 6.6% 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 were Royal Caribbean (RCL), Carnival (CCL), and Norwegian (NCLH), which all traded lower after the Cruise Lines International Association announced that its ocean-going cruise line members will voluntarily extend the suspension of cruise operations from U.S. ports until September 15, 2020. Also lower was At Home Group (HOME), which fell 11.2% after reporting quarterly results.
INDEXES: The Dow fell 208.64, or 0.8%, to 25,871.46, the Nasdaq gained 3.07, or 0.031%, to 9,946.12, and the S&P 500 declined 17.60, or 0.56%, to 3,097.74.
AMC Entertainment
-0.115 (-2.04%)
Disney
-3.94 (-3.33%)
AT&T
-0.07 (-0.23%)
Marathon Petroleum
-0.13 (-0.34%)
Use ANCTF
+ (+0.00%)
CarMax
-6.18 (-6.31%)
TrueCar
+0.1 (+3.56%)
Apple
-2.25 (-0.64%)
Niu Technologies
+1.57 (+10.93%)
Dynavax
+0.4 (+6.53%)
Royal Caribbean
-4.01 (-6.76%)
Carnival
-1.01 (-5.36%)
Norwegian Cruise Line
-1.095 (-5.67%)
At Home Group
-0.8 (-10.39%)