Stocks continue to benefit from optimism that the economy is on the mend, and perhaps at a faster pace than had been initially expected, despite the spikes in new cases reported in new U.S. hot spots that include Florida, Texas and California. As new states become the focal point for investors, New York has ceased its previously must-watch daily COVID updates as the state began the next phase of its reopening process today.
ECONOMIC EVENTS: In U.S. data, the existing home sales report undershot estimates with a 9.7% May drop to a 10-year low pace of 3.91M units.
Meanwhile, the latest data from the Florida Department of Health showed 100,217 COVID cases, up from 97,291 cases yesterday. Meanwhile, the California Department of Public Health reported 178,054 COVID-19 cases in the state as of yesterday, up 2.4% from the prior day total. In New York, which had previously been seen as the "epicenter" of the outbreak in the U.S., Governor Andrew Cuomo has stopped holding daily briefings as other hot spots around the nation are now taking center stage in the COVID case count watches.
TOP NEWS: Shares of Apple (AAPL) rose 2.6% following the company's annual Worldwide Developers Conference in an online-only format, during which the tech giant unveiled a new iPad OS, iOS, and Apple Watch OS, as well as macOS Big Sur with a Safari browser update. Most notably, however, Apple CEO Tim Cook announced that Mac computers will be transitioning away from Intel (INTC) chips to instead use Apple's own silicon chips. Cook noted that the transition from Intel's chips will take two years.
China suspended poultry imports from a Tyson Foods (TSN) plant where hundreds of employees tested positive for COVID-19, Bloomberg reported. All products from the plant in Springdale, Arkansas, where Tyson is based, that are about to arrive in China or have arrived at the country's ports will be seized by customs, the authors noted. The suspension is an about face from just a few days ago, when Chinese officials said food was unlikely to be responsible for a fresh virus outbreak in Beijing. Meanwhile, PepsiCo (PEP) said it shut a food plant in the Chinese capital after a case of the virus was confirmed earlier in the week, the publication added.
Shares of Virgin Galactic (SPCE) surged 15.9% after the company announced the signing of a Space Act Agreement with NASA's Johnson Space Center to encourage commercial participation in orbital human spaceflight to the International Space Station. Virgin Galactic will develop a new private orbital astronaut readiness program that will include identifying candidates interested in purchasing private astronaut missions to the ISS, the procurement of transportation to the ISS, on-orbit resources, and ground resources.
Meanwhile, Gilead Sciences (GILD) shares were 2.3% lower after the company said it would begin human testing of an inhaled version of remdesivir to treat COVID-19. In an open letter posted on the company's website, Gilead CEO Daniel O'Day also noted that the company expects to have over 2M remdesivir treatment courses manufactured by the end of the year and "many millions more" by 2021.
MAJOR MOVERS: Among the noteworthy gainers was Ideanomics (IDEX), which rose 48% after its MEG subsidiary secured a $3.2M electric vehicle order from the city of Neijang. Also higher was Invitae (NVTA), which gained 44.6% after it agreed to acquire ArcherDX in a deal valued at roughly $1.4B.
Among the notable losers was Livent (LTHM), which slid 15.6% after it announced a proposed private offering of $225M of convertible senior notes. Also lower was Luckin Coffee (LK), which fell 16.7% after The Wall Street Journal reported that the company will hold a special meeting on July 5 to oust several directors, including chairman Charles Lu.
INDEXES: The Dow rose 153.50, or 0.59%, to 26,024.96, the Nasdaq gained 110.35, or 1.11%, to 10,056.48, and the S&P 500 advanced 20.12, or 0.65%, to 3,117.86.
Apple
+9.16 (+2.62%)
Intel
+0.51 (+0.86%)
Tyson Foods
-1.83 (-2.89%)
PepsiCo
-0.23 (-0.18%)
Virgin Galactic
+2.4 (+16.02%)
Gilead
-1.61 (-2.08%)
Ideanomics
+1.06 (+47.75%)
Invitae
+8.4 (+45.14%)
Livent
-1.22 (-15.93%)
Use LKNCY
-0.645 (-16.78%)