U.S. markets have joined a global advance in equities despite weak domestic readings on manufacturing and industrial production. Volumes have spiked amid the quarterly event known as "quadruple witching," when stock index futures, stock index options, stock options and single stock futures expire simultaneously. If today's advance holds into the close it will cap a positive week for the S&P, Dow and Nasdaq, which all saw strong weekly gains.
ECONOMIC EVENTS: In the U.S., the Empire State manufacturing index fell 5.1 points to 3.7 in March, missing expectations. Industrial production edged up 0.1% in February, which was softer than expected, and capacity utilization dipped to 78.2% from 78.3%. The University of Michigan consumer sentiment index rose 4.0 points to 97.8 in the preliminary reading for March, which was better than expected. The JOLTS report showed that job openings rose 102,000 to 7.58M in January, hitting another record high.
In China, the government said it would cut value-added taxes, reinforcing expectations for an eventual pick-up in the economy.
TOP NEWS: Shares of Tesla (TSLA) were 4% lower after the car maker last night unveiled its Model Y, a mid-size SUV designed for "maximum versatility and safety." The vehicle will start at $39,000 for the standard range version, and will also come in long range, dual-motor all-wheel drive, and performance variants, the company said. Tesla added that it sees a Spring 2021 delivery target for the $39,000 version of the Model Y.
Meanwhile, Facebook (FB) shares fell 2.5% following the announcement of the departure of two Facebook executives, Chris Cox and Chris Daniels, as well as the livestreaming of a terrorist attack in Christchurch, New Zealand on its service. In a note from founder Mark Zuckerberg after the market close yesterday, he said that chief prdouct officer Chris Cox has opted to leave the company. Zuckerberg also announced that VP of WhatsApp Chris Daniels has also decided to leave.
Oracle (ORCL) shares were in focus after the software giant reported better than expected results for its fiscal third quarter, with Cloud Services and License Support revenues reaching $6.7B in the quarter. The company also provided upbeat earnings guidance for the fourth quarter and raised its quarterly dividend 26%. Following the report, however, BMO Capital analyst Keith Bachman downgraded the stock to Market Perform from Outperform, saying he believes the company can sustain about 2% constant currency revenue growth, but is "dubious" the company can improve its revenue growth rates.
Additionally, following a report that Spotify (SPOT) CEO Daniel Ek said his company's relationship with Apple (AAPL) is "completely unsustainable," Apple released a statement saying that the App Store is a "safe secure platform" and that Spotify is demanding to have "all the benefits of a free app without being free." Spotify shares are up 2% near noon, while Apple is up 1.5%.
MAJOR MOVERS: Among the noteworthy gainers was Karyopharm (KPTI), which rose 13% after being granted an FDA extension of the PDUFA date for its selinexor new drug application. Also higher were Broadcom (AVGO) and Ulta Beauty (ULTA), which gained a respective 10% and 9% after reporting quarterly results.
Among the notable losers was Spectrum (SPPI), which slipped 7% after withdrawing the Rolontis BLA after the FDA requested additional manufacturing-related information. Also lower were Adobe (ADBE) and Golden Entertainment (GDEN), which fell 4% and 15%, respectively, after reporting quarterly results.
INDEXES: Near midday, the Dow was up 169.71, or 0.66%, to 25,879.65, the Nasdaq was up 65.58, or 0.86%, to 7,696.50, and the S&P 500 was up 14.83, or 0.53%, to 2,823.31.
