Stocks are up about 1% after the better than expected jump in job additions last month, although that was before the more recent surges in COVID-19 cases in a number of emerging U.S. hot spots. The major averages briefly pared their gains after Florida reported a record daily increase in confirmed virus cases, but the indexes have come back from their dip to stand near session highs at midday.
ECONOMIC EVENTS: In U.S. data, nonfarm payrolls increased 4.8M in June, which was better than expected, while the unemployment rate came down by a more than expected amount to 11.1%. Initial jobless claims fell 55,000 to 1.43M in the week ended June 27. The trade deficit widened 9.7% to $54.6B in May as exports dropped 4.4% and imports slipped 0.9%. Factory orders bounced 8.0% in May after dropping a record 13.5% in April.
TOP NEWS: Shares of Tesla (TSLA) surged 8% after the car maker reported the delivery of 90,650 vehicles in the second quarter, topping the consensus estimate of 83,071 for the period. The company also noted that it produced 82,000 vehicles in the quarter.
In other auto news, Ford (F) reported U.S. sales were down 33.3% year-over-year in the second quarter to 433,869 vehicles, with U.S. truck sales down 26.6% and U.S. SUV sales down 29.9%. Ford added that U.S. car sales in Q2 fell 59.5% to 44,650, noting that coronavirus concerns "clearly affected" the quarter's sales numbers.
Meanwhile, the Wall Street Journal reported yesterday that McDonald's (MCD) is halting the reopening of dine-in services in the U.S. as COVID-19 cases continue to surge across many states. The fast food chain said it would wait three weeks before any new U.S. locations add dine-in service to its drive-through, takeout, and delivery operations, according to the Journal.
On the IPO front, Lemonade (LMND) opened at $50.06 per share after its initial public offering was priced at $29 per share.
MAJOR MOVERS: Among the noteworthy gainers was BioLife Solutions (BLFS), which rose 11% after its 5.175M share spot secondary offering priced at $14.50 per share. Also higher was Nu Skin (NUS), which gained 24% after two analysts upgraded the stock following the company raising its Q2 revenue guidance thanks to strength in the Americas and EMEA.
Among the notable losers was MEI Pharma (MEIP), which dropped 18% after announcing that an interim futility analysis of the ongoing Phase 3 study of pracinostat in combination with azacitidine in patients with AML has demonstrated it was unlikely to meet the primary endpoint of overall survival compared to the control group. Also lower was Neoleukin Therapeutics (NLTX), which fell 16% after its 5M share spot secondary priced at $15.25 per share.
INDEXES: Near midday, the Dow was up 250.33, or 0.97%, to 25,985.30, the Nasdaq was up 111.32, or 1.10%, to 10,265.95, and the S&P 500 was up 29.93, or 0.96%, to 3,145.79.
Tesla
+94.67 (+8.46%)
Ford
+0.11 (+1.84%)
McDonald's
+0.11 (+0.06%)
Lemonade
+ (+0.00%)
BioLife Solutions
+1.71 (+10.63%)
Nu Skin
+9.04 (+23.49%)
MEI Pharma
-0.745 (-17.45%)
Neoleukin Therapeutics
-2.66 (-15.59%)