The S&P began the third quarter with an advance after the second quarter saw the best performance out of the benchmark index in over two decades. Encouraging news on the COVID-19 vaccine front certainly played a role after Pfizer (PFE) and a smaller partner provided some early data on one of four candidates they are studying to fight the disease.
ECONOMIC EVENTS: In U.S. data, ADP reported private payrolls rose 2.37M in June. The ISM manufacturing index reading for June jumped 9.5 points to 52.6, which was stronger than expected. Construction spending fell 2.1% in May.
In Federal Reserve news, minutes from the latest Fed meeting show that members noted the economy will like need support from "highly accomodative" monetary policy "for some time." The Fed added that it doesn't see the need to reinforce forward guidance with yield caps.
In COVID-19 news, Florida reported 158,997 virus cases in the states, up from 152,434 cases yesterday, while Airzona reported 84,092 cases, up 4,878 from the previous day. Meanwhile, California reported a 4.4% daily increase in COVID-19 cases, as Eater LA reported that Governor Gavin Newsom is set to order the closure of Los Angeles area restaurants for three weeks.
TOP NEWS: Shares of Pfizer gained 3.2% after the company and partner BioNTech (BNTX) announced preliminary data from the most advanced of four investigational vaccine candidates from their BNT162 mRNA-based vaccine program against the virus causing the current global pandemic. BioNTech shares trading in New York ended the day 3.9% lower following the announcement.
Meanwhile, FedEx (FDX) shares jumped 11.7% after the shipping giant reported results last night that came in well ahead of "bearish pandemic" forecasts, according to Barclays analyst Brandon Oglenski. JPMorgan analyst Brian Ossenbeck upgraded FedEx to Overweight from Neutral following the "solid" earnings beat, telling investors that ground's margin gains appear supported by structural initiatives over the last year and express weathered the collapse in business-to-business better than expected.
Shares of Constellation Brands (STZ) rose 6.2% after the company reported quarterly results and announced its purchase of Empathy Wines, a "digitally-native wine brand and direct-to-consumer platform."
Automakers have been reporting on their quarterly sales and production figures throughout the morning. General Motors (GM) announced it delivered 492,489 vehicles in the second quarter of 2020, a decrease in total vehicle sales of about 34% compared to a year ago, while FCA US (FCAU) reported second quarter sales of 367,086 vehicles, a 39% decline over the same period a year earlier. Meanwhile, Volkswagen (VWAGY) reported monthly retail sales fell 1.6%, while Honda (HMC) reported that June U.S. sales fell 15.5% year-over-year.
Additionally, Apple (AAPL) was in focus after CNBC reported that the tech giant will re-close 30 more stores, bringing the total number of re-closures in the U.S. to 77 as COVID-19 cases surge in many states. Stores in Alabama, California, Georgia, Idaho, Louisiana, Nevada, and Oklahoma will close tomorrow, while other stores in Florida, Mississippi, Texas, and Utah are closed as of today, according to CNBC.
MAJOR MOVERS: Among the noteworthy gainers was Akero Therapeutics (AKRO), which rose 33.9% after reporting 16-week data from its Phase 2a study of efruxifermin. Also higher was AxoGen (AXGN), which gained almost% after reporting quarterly results.
Among the notable losers was Inovio (INO), which slid 26.8% after analysts from Maxim and Roth Capital downgraded the stock and after Pfizer reported its own vaccine news. Also lower was SteelCase (SCS), which fell 14% after reporting quarterly results.
INDEXES: The Dow fell 77.91, or 0.3%, to 25,734.97, the Nasdaq gained 95.86, or 0.95%, to 10,154.63, and the S&P 500 advanced 15.57, or 0.5%, to 3,115.86.
Pfizer
+1.06 (+3.24%)
BioNTech
-2.595 (-3.89%)
FedEx
+16.61 (+11.84%)
Constellation Brands
+11.415 (+6.54%)
General Motors
-0.35 (-1.38%)
Ticker changed to STLA
-0.345 (-3.37%)
Volkswagen
+ (+0.00%)
Honda
-0.19 (-0.74%)
Apple
-0.35 (-0.10%)
Akero Therapeutics
+8.65 (+34.81%)
AxoGen
+2.48 (+26.78%)
Inovio
-7.15 (-26.60%)
Steelcase
-1.69 (-14.00%)