The major averages were mixed, with the Nasdaq advancing mildly and the Dow slipping a bit as the busiest week of the current earnings season, at least in terms of members of the S&P 500, kicked off. Investors returning from the long holiday weekend did not see stocks do much of note, but oil prices were strong after the U.S. said it will not extend any of the waivers it had previously granted to Iranian oil importers.
ECONOMIC EVENTS: In the U.S., existing home sales fell 4.9% to a 5.21M rate in March, which was a little below the consensus forecast. The Chicago National Activity index improved 0.16 points to -0.15 in March. In energy news, Secretary of State Mike Pompeo said the U.S. will not extend any of the previously granted waivers that are set to expire on May 2 that currently allow eight countries to continue to import Iranian oil despite sanctions. Meanwhile, Donald Trump tweeted that Herman Cain has asked the President not to nominate him for a seat on the Federal Reserve Board, and that he will respect Cain's wishes.
In China, The South China Morning Post reported that China's senior communist leaders have communicated plans to focus on "structural reforms," instead of economic stimulus, after growth in the first quarter was better than expected.
TOP NEWS: Boeing (BA) shares slipped 1.3% after The New York Times reported that workers at Boeing's 787 Dreamliner plant in South Carolina have complained of defective manufacturing, debris left on planes and pressure to not report violations. In response, Brad Zaback, vice president and general manager of Boeing's 787 Program, sent an email Saturday to all South Carolina employees that said the NY Times article "features distorted information, rehashing old stories and rumors that have long ago been put to rest."
Tesla (TSLA) shares were pressured by a media report regarding an apparent explosion of one of its parked vehicles in Shanghai and a downgrade of the stock to a sell-equivalent rating that cites a recent "severe decline" in demand for the Model S and Model X. Meanwhile, the electric carmaker held an event to provide a more detailed look at its full self-driving technology and provide investors with more information about its custom-built self-driving computer. Tesla shares finished the day down 3.85%.
In terms of notable earnings reporters this morning, Kimberly-Clark (KMB) advanced following its release of quarterly results, while Grainger (GWW) declined after its own report.
Meanwhile, Samsung (SSNLF) said that it has delayed the launch date of its Galaxy Fold following reviewers saying last week that the phone started to break during testing. The original launch date was April 26.
MAJOR MOVERS: Among the noteworthy gainers was KeyW (KEYW), which surged 42.1% after Jacobs Engineering (JEC) announced an agreement to acquire the company for $11.25 per share in cash in a transaction with an enterprise value, net of tax assets, of approximately $815M, including net debt. Jacobs shares gained 2.3% after the news. Also higher was Akorn (AKRX), which rose 7.9% after it announced last Thursday that it received a new Abbreviated New Drug Application approval from the FDA for Loteprednol Etabonate Ophthalmic Suspension, 0.5%.
Among the notable losers was GrafTech (EAF), which slid 11% after Citi analyst Alexander Hacking double downgraded the stock to Sell from Buy and cut his price target for the shares to $12 from $17. Also lower was Intuitive Surgical (ISRG), which fell 7% after Canaccord analyst Jason Mills cut his price target on the stock to $575 from $610 following the company's Q1 EPS miss, reported before the long holiday weekend.
INDEXES: The Dow fell 48.49, or 0.18%, to 26,511.05, the Nasdaq gained 17.21, or 0.22%, to 8,015.27, and the S&P 500 advanced 2.94, or 0.1%, to 2,907.97.
