The Nasdaq and S&P climbed to record closing highs, while the Dow finished a bit short of its all time high close but saw a solid advance, as the market's focus continues to turn back to fundamentals following the great amount of attention paid last week to the Reddit/GameStop mania. Stimulus from Washington still appears likely, moderation is evident in the spread of the virus and lockdowns, and progress continues on the administration of vaccines. Meanwhile, U.S. companies are on track to post profit growth in Q4, contrary to expectations for a decline, according to Reuters.
ECONOMIC EVENTS: In the U.S., initial jobless claims fell 33,000 to 779,000 in the week ended January 30. Productivity contracted at a 4.8% rate in the preliminary Q4 report, which was a larger drop than expected. Factory orders rose 1.1% in December.
TOP NEWS: Apple (AAPL) shares rose 2.6% after CNBC reported that the tech giant is near finalizing an agreement with Hyundai-Kia (HYMTF) to make an Apple-branded autonomous electric car at the Kia assembly factory in West Point, Georgia. The so-called "Apple Car," which is being developed by a team at the U.S. tech giant, is tentatively set to enter production in 2024, though the eventual launch could be further delayed, according to CNBC.
Shares of Merck (MRK) were 1.7% lower after announcing that Kenneth Frazier will retire as CEO of the company effective June 30, with CFO Robert Davis unanimously named by the board as Frazier's successor. In addition, the company reported downbeat quarterly results and provided guidance for fiscal 2021.
In other earnings news, Qualcomm (QCOM) shares fell 8.8% after the company reported better than expected earnings per share for the first quarter, though non-GAAP revenue was below consensus estimates. Of note, the company provided better than expected guidance for the second quarter. Also, shares of PayPal (PYPL) and eBay (EBAY) rose a respective 7.4% and 5.3% after both companies reported better than expected quarterly earnings and revenue.
In non-earnings news, GameStop (GME) shares are continuing this week's decline, sliding over 42% as investors are selling following last week's sharp gains. Notably, Bloomberg reported yesterday that the U.S. Securities and Exchange Commission investigators are combing social media and message board posts for signs that fraud played a role in dizzying stock swings for GameStop, AMC (AMC), and other companies.
Meanwhile, consumer genetics and research company 23andMe and VG Acquisition Corp. (VGAC), a special purpose acquisition company sponsored by Virgin Group, announced that they have entered into a definitive merger agreement in a deal that values 23andMe at roughly $3.5B.
Additionally, CoreLogic (CLGX) closed 1.3% higher after it agreed to be acquired by Stone Point Capital and Insight Partners for $80 per share in cash. Following the announcement, The Wall Street Journal reported that CoStar Group (CSGP), which had made a higher bid for CoreLogic, was "studying all of its options" on the matter, including a potential new bid.
MAJOR MOVERS: Among the noteworthy gainers was Lizhi (LIZI), which rose 70.5% after announcing a cooperation agreement with Pop Mart. Also higher were Canada Goose (GOOS) and Digital Turbine (APPS), which gained a respective 22.4% and 19.8% after reporting quarterly results.
Among the notable losers was Clover Health (CLOV), which dropped 12.3% after Hindenburg Research issued a cautious report in which it claims to "reveal how Clover Health and its Wall Street celebrity promoter, Chamath Palihapitiya, misled investors about critical aspects of Clover's business in the run-up to the company's SPAC go-public transaction last month." Also lower were Lannett (LCI) and Peabody Energy (BTU), which fell 16% and 15%, respectively, after reporting quarterly results.
INDEXES: The Dow rose 332.26, or 1.08%, to 31,055.86, the Nasdaq gained 167.20, or 1.23%, to 13,777.74, and the S&P 500 advanced 41.57, or 1.09%, to 3,871.74.
Apple
+3.49 (+2.61%)
Hyundai Motor
+ (+0.00%)
Hyundai Motor Co
+ (+0.00%)
Merck
-1.31 (-1.69%)
Qualcomm
-14.35 (-8.84%)
PayPal
+18.67 (+7.41%)
eBay
+3.075 (+5.30%)
GameStop
-38.6699 (-42.03%)
AMC Entertainment
-1.78 (-20.07%)
VG Acquisition
+4.09 (+30.50%)
CoreLogic
+1.33 (+1.65%)
CoStar Group
+1.825 (+0.20%)
Use SOGP
+6.03 (+71.19%)
Canada Goose
+7.72 (+21.95%)
Digital Turbine
+12.53 (+19.46%)
Clover Health
-1.685 (-12.11%)
Lannett
-1.15 (-15.44%)
Peabody Energy
-0.63 (-14.48%)
23andMe
+ (+0.00%)