Major stock market indexes jumped as investors were more optimistic about a quick, post-pandemic recovery and less concerned about violent protests around the country over racial inequality, plus more in today’s Closing Bell on Money & Markets.
The Top Story
Investors continued to hope for a rapid recovery in the U.S. economy after manufacturing data showed an uptick in May (see more below).
Financial stocks were boosted on the news, which propelled the S&P 500 upward.
The benchmark index’s 38% rebound since late March has been underpinned by trillions of dollars in stimulus and hopes that the global economy will rebound from the coronavirus-led downturn as countries start to ease lockdowns.
National Guard troops were deployed in 15 states and Washington, D.C., after the sixth night of violent protests surrounding the death of a Minnesota man while in police custody.
Taking an even farther backseat was rising U.S.-China tensions that could pose a serious risk to the stock market rally of the last two months. On Monday, the Chinese government told state-owned companies to halt buying agricultural products from the U.S. after Washington said it would halt special treatment for Hong Kong.
The Dow Jones and S&P 500 both jumped up 0.4% and the Nasdaq rose 0.7%.
Stock Market Update: Closing Bell*
S&P 500: 3,055 (+0.38%)
DOW: 25,475 (+0.36%)
NASDAQ: 9,552 (+0.66%)
GOLD: $1,750.50 (-0.07%)
BITCOIN: $9,581.55 (+0.87%)
U.S. 10-YEAR YIELD: 0.66% (+0.018)
*- as of 4:10 p.m.
A Big Win
In this morning’s Opening Bell, we told you about social game developer Zynga Inc. (Nasdaq: ZNGA) acquiring Turkish mobile game producer for $1.8 billion in cash and stock. Shares of Zynga rose 5.6% on news of the deal.
We also told you to be on the lookout for Pfizer Inc. (NYSE: PFE) after its breast cancer drug Ibrance did not show “a statistically significant improvement” in recent trials with breast cancer patients. Shares of the pharmaceutical company were down over 7%.
Finally, we told you of the leadership change and transaction deal at cosmetics company Coty Inc. (NYSE: COTY). Chairman Peter Harf was named the new CEO and it has agreed to a $4.3 billion deal with KKR to sell off some of its brands. Shares of Coty rose almost 21%.
Golden Nuggets
U.S. spot gold prices jumped on increasing friction between the U.S. and China as well as protests across the nation over racism.
Spot gold jumped 0.5%, retreating from a 1% gain it held earlier in the day. The U.S. dollar fell to its lowest point since mid-March, which further supported spot prices.
However, restricting bullion’s gains was optimism over a potential COVID-19 vaccine and easing lockdowns, which underpinned world stocks’ near three-month highs.
Gold futures were down 0.07% to trade at $1,750.50 an ounce. Silver futures were up 1.6% to $18.79 an ounce.
Platinum rose 2.9% to $899 an ounce while palladium climbed 0.5% to trade at $1,981.90 an ounce.
Cannabis Corner
Denver-based MJardin Group has abandoned its planned acquisition of Nevada edibles maker Cannabella.
According to Marijuana Business Daily, MJardin Group only said the deal failed to close and did not provide any further detail.
The deal was supposed to close at the end of 2019 but did not close by April 2020, so under the terms of the deal, MJardin pulled out. The companies are discussing fees, expenses and other monetary details surrounding the negotiations.
US Manufacturing Stabilizing at Depressed Level
A major indicator for U.S. manufacturing was up in May for the first time in four months. However, it still indicates shrinking activity.
The Institute for Supply Management said its manufacturing index climbed to 43.1 in May — up from an 11-year low of 41.5 in April. Any reading under 50 indicates collapsing activity.
“However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders,” ISM chairman, Timothy Fiore, said in a release.
Of the 18 manufacturing industries, only six reported growth in May — nonmetallic mineral products, furniture, apparel, leather and allied products, food, beverage and tobacco products, paper and wood.
Today’s Big Winners
S&P 500: Coty Inc. (NYSE: COTY) +20.9%
Nasdaq: Zoom Video Communications Inc. (Nasdaq: ZM) +13.7%
Dow: Boeing Co. (NYSE: BA) +3.8%
Today’s Big Losers
S&P 500: NetApp Inc. (Nasdaq: NTAP) -4.2%
Nasdaq: NorthLifeLock Inc. (Nasdaq: NLOK) -4.7%
Dow: Pfizer Inc. (NYSE: PFE) -7.1%
Check back for the most important news and numbers each day after the Closing Bell, only on Money & Markets.