Stocks closed out the holiday shortened week on an up note after a 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 pared some of their gains in the afternoon as some of those hot spot states, such as Florida, Arizona and California, reported their daily virus figures, but the indexes finished trading with gains ahead of the long Fourth of July weekend.
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. In energy news, Baker Hughes reported that the U.S. Rig Count is down 2 rigs from last week to 263.
In COVID-19 news, Florida reported 169,106 virus cases in the state, up from 158,997 yesterday, Arizona reported a day-to-day increase of 3,333 cases, and California reported a 1.7% increase in COVID-19 cases in the state since yesterday. California also reported 6,163 deaths in the state, a 1.2% increase.
TOP NEWS: Shares of Tesla (TSLA) surged almost 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.
Additionally, Moderna (MRNA) shares fell 4.9% after STAT reported that a 30,000-patient trial of the company's COVID-19 vaccine candidate, which was expected to start next week, has been delayed. Moderna is making changes to the trial plan, which has pushed back the expected start date of the Phase 3 study, according to STAT. Later on, however, Moderna CEO Stephane Bancel told CNBC's Meg Tirrell that the July start for the trial is on. "We have always said July. And I confirm July," Bancel said, noting that there are always small protocol changes to trials.
MAJOR MOVERS: Among the noteworthy gainers was Graf Industrial (GRAF), which rose 48.2% after it and Velodyne agreed to form Lidar Technology. Also higher was Nu Skin (NUS), which gained 24.9% 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 18.3% 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.
INDEXES: The Dow rose 92.39, or 0.36%, to 25,827.36, the Nasdaq gained 53.00, or 0.52%, to 10,207.63, and the S&P 500 advanced 14.15, or 0.45%, to 3,130.01.
Tesla
+88.84 (+7.94%)
Ford
+0.065 (+1.09%)
McDonald's
-0.95 (-0.51%)
Lemonade
+ (+0.00%)
Moderna
-3.06 (-4.97%)
Graf Industrial
+6.605 (+47.33%)
Nu Skin
+9.605 (+24.96%)
MEI Pharma
-0.79 (-18.50%)
Match Group
-7.35 (-6.92%)