The S&P had its fourth straight winning session following economic data amid signs of a U.S. fiscal deal. In addition, President Trump said he will go it alone on a payroll tax cut if he has to and reports state that the U.S. and China will meet on August 15 to assess the phase one trade deal.
ECONOMIC EVENTS: In the U.S., ADP reported private payrolls increased 167,000 in July, which was sharply below estimates. The trade deficit narrowed by a less than expected 7.5% to $50.7B in June as exports bounced 9.4% and imports jumped 4.7%. Markit's PMI services index rose to 50.0 in the final July read, bettering the 49.6 preliminary reading and the 47.9 figure for June. ISM's services index rose 1 point to 58.1 in July, which was better than forecast.
TOP NEWS: Shares of Disney (DIS) were 8.8% higher following last night's fiscal Q3 report. Following the report, BMO Capital analyst Daniel Salmon highlighted what he sees as "a slew of new news" that has "reinvigorated the Bull case," including another investor day that is upcoming, the launch of a new STAR-branded general entertainment app internationally, and the announcement that "Mulan" will premier on Disney+ in most countries "on a premier access basis." Meanwhile, Douglas Mitchelson, who upgraded Disney to Outperform from Neutral with a price target of $146, up from $116, said that new CEO Bob Chapek is now indicating an "innovative and bold" further pivot to streaming.
In other mega cap earnings news, shares of CVS Health (CVS) fell almost 1% following the company's quarterly report.
In COVID-19 vaccine news, shares of Novavax (NVAX) gained 10.4% after the company announced data from its Phase 1/2 randomized, observer-blinded, placebo-controlled trial of its COVID-19 vaccine with and without Matrix-M adjuvant in healthy adults 18-59 years of age.
In addition, Johnson & Johnson (JNJ) has announced that its Janssen Pharmaceutical unit has entered into an agreement with the U.S. government for the large scale domestic manufacturing and delivery in the U.S. of 100M doses of Janssen's SARS-CoV-2 investigational vaccine, while Pfizer Canada (PFE) and BioNTech (BNTX) also announced an agreement with the Government of Canada to supply their BNT162 mRNA-based vaccine candidate against SARS-CoV-2, assuming it is found to work. Moderna (MRNA), another peer developing a COVID vaccine that just reported on its earnings, closed 3.4% lower.
In M&A news, shares of Teladoc (TDOC) and Livongo (LVGO) declined 18.9% and 11.4%, respectively, after the companies announced that they have entered into a definitive merger agreement.
Meanwhile, Exxon Mobil (XOM) was in focus after it disclosed in a regulatory filing that 20% of its reserves are threatened by low oil prices. The news comes as energy stocks have seen a noticeable outperformance amid a spike in natural gas and a crude inventory drop.
Additionally, Axios reported that the U.S. Department of Justice is suing Cigna (CI), alleging the company fraudulently mischaracterized the health of its Medicare Advantage enrollees as a way to receive higher federal payments.
MAJOR MOVERS: Among the noteworthy gainers was Fulgent Genetics (FLGT), which rose 21.7% after the company reported better than expected earnings and revenue. Also higher were EnLink Midstream (ENLC), LivePerson (LPSN), and Assurant (AIZ), which gained after reporting quarterly results.
Among the notable losers was EverQuote (EVER), which slid almost 23% after it reported quarterly results and agreed to acquire Crosspointe Insurance & Financial Services. Also lower after reporting quarterly results were Vapotherm (VAPO), New Relic (NEWR), and Cardlytics (CDLX).
INDEXES: The Dow rose 373.05, or 1.39%, to 27,201.52, the Nasdaq gained 57.23, or 0.52%, to 10,998.40, and the S&P 500 advanced 21.26, or 0.64%, to 3,327.77.
