Stocks looked headed for a down day as of last night after White House trade adviser Peter Navarro told Fox News "it's over" in an interview when asked about the China trade agreement. However, following the interview, Navarro said his comments were taken "wildly out of context" while President Donald Trump tweeted that the "China Trade Deal is fully intact." Those reassurances, along with encouraging PMI data from Europe and the U.S., turned around the market and the major averages are up about 1% across the board near noon.
ECONOMIC EVENTS: In U.S. data, Markit's manufacturing index popped 9.8 points higher to 49.6 in the flash June reading. The flash services reading rose 9.2 points to 46.7. While both are in contraction territory, they are nevertheless the highest readings since February. New home sales beat estimates in May with a 16.6% surge to a 676,000 home rate. The Richmond Fed index climbed back to unchanged in June from -27 in May.
TOP NEWS: Shares of Apple (AAPL) are on the rise the day after the company unveiled a new iPad OS, iOS, and Apple Watch OS, as well as macOS Big Sur with a Safari browser update during its annual Worldwide Developers Conference that took place online-only. Apple CEO Tim Cook also confirmed that Mac computers will be transitioning away from Intel (INTC) processors to instead use Apple's own silicon chips.
Meanwhile, Bloomberg's David McLaughlin reported that the Justice Department, led by Attorney General William Barr, is preparing to file an antitrust lawsuit against Google (GOOG). The report noted that such a suit would be a win for Rupert Murdoch's News Corp. (NWSA), which publishes the Wall Street Journal and the Times of London, among other papers.
In M&A news, Mastercard (MA) announced an agreement to acquire Finicity, a North American provider of real-time access to financial data and insights. Mastercard said the purchase price is $825M and Finicity's existing shareholders have the potential for an earn-out of up to an additional $160M if performance targets are met. Following the deal annoucement, Wells Fargo analyst Donald Fandetti said he believes the acquisition of Finicity will enable MasterCard to provide open banking capabilities in the U.S., building on its progress in regions such as Europe.
MAJOR MOVERS: Among the noteworthy gainers was Translate Bio (TBIO), which rose 41% after it expanded its collaboration with Sanofi Pasteur (SNY) to develop mRNA vaccines. Also higher was Plug Power (PLUG), which gained 23% after the company raised its 2024 revenue target to $1.2B from $1B.
Among the notable losers was Luckin Coffee (LK), which slid 15% after the company received a delisting notice from Nasdaq. Also lower was Spirit AeroSystems (SPR), which fell 14% after it said in a regulatory filing that Boeing (BA) directed it to reduce its 2020 737 production plan.
INDEXES: Near midday, the Dow was up 206.76, or 0.79%, to 26,231.72 , the Nasdaq was up 131.38, or 1.31%, to 10,187.85 , and the S&P 500 was up 28.44, or 0.91%, to 3,146.30 .
Apple
+9.49 (+2.64%)
Intel
+0.18 (+0.30%)
MasterCard
+4.01 (+1.32%)
Alphabet
+15.18 (+1.05%)
Alphabet
+14.3 (+0.98%)
Telesis Bio
+6.5 (+40.05%)
Plug Power
+1.29 (+23.24%)
Use LKNCY
-0.485 (-15.16%)
Boeing
-4.63 (-2.46%)
Spirit AeroSystems
-3.755 (-13.80%)