Stocks were rallying in early trading following the latest news of a promising coronavirus vaccine test. Moderna's (MRNA) report last night that its experimental vaccine produced the desired immunity for all 45 people in an early trial gave stocks a boost despite news of President Trump signing an executive order ending Hong Kong's special status. U.S. markets weakened in the late morning amid reports that China was planning to retaliate following the signing of the "Hong Kong Autonomy Act," but the averages gathered themselves and headed higher again to close with gains across the board.
ECONOMIC EVENTS: In the U.S., the Empire State manufacturing index increased 17.4 points to 17.2 in June, which was stronger than forecast. Import and export prices each rose 1.4% in June, which was hotter inflation than expected. Industrial production rose 5.4% in June, lifting capacity utilization to 68.6%, both of which were above forecast.
In Fed news, the Federal Reserve's Beige Book report stated that economic activity was up in almost all districts, but still "well below" pre-COVID-19 levels. The Beige Book also noted that employment is up, though prices are little changed since the last report.
The latest data at the state level for some U.S. virus hot spots showed Florida now has 301,810 COVID-19 cases, up more than 10,000 from yesterday, while Arizona disclosed 131,354 COVID-19 cases, up 3,257 from yesterday's report. California reported 347,634 COVID-19 cases, up 11,126 from the prior day. Meanwhile, Alabama Governor Kay Ivey issued a statewide mask requirement, extending the state's order until July 31, 2020 at 5:00 pm.
TOP NEWS: Goldman Sachs (GS), similar to JPMorgan (JPM) yesterday, reported better than expected results that were driven by its trading and investment banking operations.
Fellow Dow member UnitedHealth (UNH) fell 1.5% following a mixed report that included an earnings beat and revenue miss. UnitedHealth CEO David Wichmann said there has been an "unprecedented" decline in healthcare services during the pandemic, adding that he expects slightly elevated levels in the second half of the year as people go back for deferred care.
In news on the search for pharmaceutical answers to COVID-19, Moderna announced that an interim analysis of open label Phase 1 study of its mRNA-based COVID-19 vaccine was published in the New England Journal of Medicine detailing an immune response across three dose levels in 45 healthy adults. Meanwhile, Sky News reported that the Lancet Medical Journal plans to publish Phase 1 of clinical trial data on Oxford University and AstraZeneca's (AZN) COVID-19 vaccine on Monday, July 20. That followed an earlier report from ITV saying there "will be positive news soon (perhaps tomorrow) on initial trials" of the COVID-19 vaccine candidate.
Additionally, Walmart (WMT) announced it will require all shoppers to wear a face covering starting Monday, July 20. "Currently about 65% of our more than 5,000 stores and clubs are located in areas where there is some form of government mandate on face coverings," the COOs of Walmart U.S. and Sam's Club said in a post to the company's blog.
MAJOR MOVERS: Among the noteworthy gainers was ForeScout (FSCT), which rose 15.4% after it reached an amended merger deal with Advent International for $29 per share. Also higher was Organogenesis (ORGO), which gained 16.7% after it provided upbeat Q2 revenue guidance.
Among the notable losers was Ball Corp. (BLL), which slid 5.5% after a local news outlet in Pennsylvania reported that Can-Pack, the fourth-largest global beverage can producer, will build its first U.S. plant. Citi analyst Anthony Pettinari said that he views the news as "a clear negative" for Ball, Crown Holdings (CCK) and Ardagh Group (ARD) if the report is accurate. Also lower was BNY Mellon (BK), which fell 5.5% after reporting quarterly results.
INDEXES: The Dow rose 227.51, or 0.85%, to 26,870.10, the Nasdaq gained 61.92, or 0.59%, to 10,550.49, and the S&P 500 advanced 29.04, or 0.91%, to 3,226.56.
Symbol changed to BALL
-4.16 (-5.65%)
Crown Holdings
-1.655 (-2.41%)
Goldman Sachs
+2.54 (+1.19%)
JPMorgan
+1.52 (+1.55%)
UnitedHealth
-4.44 (-1.44%)
Moderna
+5.19 (+6.92%)
AstraZeneca
+4.01 (+7.43%)
Walmart
-0.04 (-0.03%)
ForeScout
+3.92 (+15.70%)
Organogenesis
+0.63 (+19.38%)
Ardagh Group
+0.2 (+1.51%)
BNY Mellon
-2.14 (-5.49%)