Stocks opened higher and the S&P 500 closed at a record high following a holiday-shortened session that certainly did not lack for news or economic data. Reports on payrolls, services, factory orders, oil and natural gas inventories and the trade deficit were all published during the market's abbreviated session. Additionally, a potential big M&A deal was foreshadowed by media reports and two household names in automaking issued quarterly updates.
ECONOMIC EVENTS: In the U.S., ADP announced private payrolls increased 102,000 in June, which fell short of expectations. The trade deficit widened 8.4% to $55.5B in May, which was a little larger than forecast. Initial jobless claims fell 8,000 to 221,000 in the final week of June. Markit's services PMI rose to 51.5 in the final June print, up from the 50.7 preliminary figure and May's three-year low reading of 50.9. However, the ISM services index fell 1.8 points to 55.1 in June, which was a little worse than expected. Factory orders declined 0.7% in May after a 1.2% drop in April.
TOP NEWS: Symantec (SYMC) advanced 13.6% to close at $25.10 after Bloomberg and Financial Times both reported that Broadcom (AVGO) is in advanced talks to buy the cybersecurity company. Financial Times' report said a deal could value Symantec at over $15B, while Wedbush analyst Daniel Ives said he believes $26-$28 per share is the most likely valuation for Symantec in a buyout scenario, adding that he views such a price as one "that many investors would ultimately approve."
Shares of Tesla (TSLA) gained 4.6% after the company last night reported Q2 production and deliveries data that beat consensus expectations. The electric carmaker announced "record" production of 87,048 vehicles and "record" deliveries of approximately 95,200 vehicles in the second quarter.
Ford (F), a day after the quarterly sales report of peer General Motors (GM), announced this morning that its sales were down 4.1% compared to the second quarter of last year to 650,336 vehicles.
MAJOR MOVERS: Among the noteworthy gainers was Karyopharm (KPTI), which surged over 36% after the company's selinexor tablets, to be marketed as Xpovio, received approval from the FDA. Also higher was Ziopharm (ZIOP), which gained 10.9% after it named Drew Deniger to direct its TCR-T cell therapy program.
Among the notable losers was Usana (USNA), which slid 19.3% after it provided preliminary Q2 results and lowered its guidance for fiscal 2019. Also lower was Alcoa (AA), which fell 2.6% after it announced that the Aluminerie de Becancour Inc. smelter plans to restart curtailed smelting capacity after members of the United Steelworkers union in Quebec, Canada approved a six-year labor agreement.
INDEXES: The Dow gained 248.57, or 0.93%, to 26,966.00, the Nasdaq advanced 61.14, or 0.75%, to 8,170.23, and the S&P 500 rose 22.81, or 0.77%, to 2,995.82.
