Stocks were higher from the start of trading following the release of Huawei's CFO on bail and a Wall Street Journal article stating that China will consider rethinking its “Made in 2025” mandate in order to ease tensions with the U.S. Adding to those two headlines was a report that China just made its first major U.S. soybean purchases in over six months. The averages pared some of their gains as the afternoon progressed, but the Dow and S&P still gained over 0.5% each for the session while the Nasdaq added about 1%.
ECONOMIC EVENTS: In the U.S., the Consumer Prices Index was flat month-over-month in November, while the core rate edged up 0.2%, both of which matched forecasts. DOE inventory data showed a 1.2M barrel weekly decline in crude stocks, compared to expectations for a 3.2M barrel drawdown. In trade news, Reuters reported that two U.S. traders said that China made its first major U.S. soybean purchases in over six months on Wednesday, the first since U.S. President Donald Trump and China's Xi Jinping reached a trade war truce earlier this month. In other political news, Michael Cohen, the former personal lawyer for President Trump, was sentenced to three years in prison in federal court in Manhattan, according to media reports. In the U.K., Theresa May won a confidence vote by a measure of 200-117 and will remain leader of the Conservative party and Prime Minister.
COMPANY NEWS: Lowe's (LOW) rose 3% after it reiterated its guidance for fiscal 2018, issued better than expected earnings guidance for fiscal 2019 and announced a new $10B share repurchase program.
Moving in the other direction on the heels of its own financial meeting, Under Armour (UAA) Class A shares fell 10% after the company issued guidance for North America that disappointed investors. Under Armour narrowed its fiscal 2018 earnings per share guidance, gave its view on FY19 and said it sees revenue returning to a low double-digit growth rate by 2023.
Shares of Deutsche Bank (DB) were 8% higher in New York trading after Bloomberg said that high-level discussions are being held among German government officials and bank executives to look at concrete ways the government can assist in a potential combination of Deutsche and the country's next largest lender, Commerzbank (CRZBY).
Tencent Music (TME) priced 82M shares in its much anticipated initial public offering and opened at $14.10 per share, above the IPO pricing of $13.00.
MAJOR MOVERS: Among the noteworthy gainers was Bausch Health (BHC), which rose 5% after it agreed to acquire Synergy Pharmaceuticals (SGYP) for roughly $200M in cash. Synergy, which initiated voluntary bankruptcy proceedings under Chapter 11 to facilitate the sale and address its debt obligations, saw its stock plunge 53% to 16c a share after the news. Also higher was United Rentals (URI), which gained 6% after it backed its fiscal 2018 revenue guidance, provided fiscal 2019 guidance, and said it will resume its $1.25B share repurchase program this month.
Among the notable losers was Neurocrine (NBIX), which fell 14% after its Phase 2b T-Force GOLD study for valbenazine in pediatric Tourette Syndrome did not meet its primary endpoint. Also lower was Dave & Buster's (PLAY), which declined 8% after reporting quarterly results.
INDEXES: The Dow rose 157.03, or 0.64%, to 24,527.27 , the Nasdaq gained 66.48, or 0.95%, to 7,098.31 , and the S&P 500 advanced 14.29, or 0.54%, to 2,651.07 .
