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Daily Stock Market Update – Wednesday, June 6th

Daily Stock Market Update – Wednesday, June 6th

U.S. stocks are heading for a fourth straight gain Wednesday as banks surge in tandem with interest rates. Smaller, more domestic-focused companies continue to set records as investors monitor trade disputes between the U.S. and other countries as well as global economic growth. Retailers and heath care companies are also rising. Electric car maker Tesla is gaining as investors grow more confident it will meet its production targets for the Model 3 sedan.

KEEPING SCORE: The S&P 500 index added 13 points, or 0.5 percent, to 2,762 as of 2:10 p.m. EDT. The Dow Jones industrial average climbed 218 points, or 0.9 percent, to 25,018. The Nasdaq composite rose 22 points, or 0.2 percent, to 7,660. The Russell 2000 index of smaller company stocks gained 5 points, or 0.3 percent, to 1,670.

PUT IT IN DRIVE: Electric car maker Tesla rose after Chairman and CEO Elon Musk said he expects the company will be able to produce 5,000 Model 3 sedans in a single week by the end of this month. That’s Tesla’s long-term goal for production of the Model 3, its attempt to reach the mass market with a less expensive car. Tesla has struggled to reach that target, and doing so would help the company stem its long-term losses.

Tesla shareholders also rejected a proposal to overhaul the board of directors and strip Musk of his role as chairman. The stock gained 7.5 percent to $312.86.

BONDS AND BANKS: Bond prices slipped. The yield on the 10-year Treasury note rose to 2.98 percent from 2.93 percent. Higher yields can signal higher rates on mortgages and other consumer loans. JPMorgan Chase climbed 2.5 percent to $110.49, and Bank of America gained 3 percent to $29.99.

NEED A DRINK?: Jack Daniel’s maker Brown-Forman slumped 6 percent to $52.53. The company’s sales fell short of analyst projections while costs connected with the creation of a charitable foundation affected its earnings. Brown-Forman could also be caught up in the trade tensions ignited by President Trump’s decision last week to impose tariffs on steel and aluminum imported from the European Union, Mexico and Canada. The company said it has concerns about how possible tariffs on U.S. spirits would affect its sales. Kentucky bourbon was included on a list of possible tariff targets by European Union officials.

On Tuesday, Mexico announced duties of 15 to 25 percent on imports from the United States, including pork, steel tubes and bourbon. The government said it would waive tariffs on pork from other countries to ensure adequate supplies. Canada has also said it’s planning steel and aluminum tariffs that will take effect July 1, and the European Union is expected to announce its own response to the U.S. tariffs in the coming weeks.

Those issues are likely to take center stage when leaders of the Group of Seven meet Friday. Finance ministers of the other six governments expressed “concern and disappointment” over the tariffs in a statement last weekend.

ENERGETIC: Devon Energy climbed after it said it will sell its interest in two companies for a total of $3.13 billion. Global Infrastructure Partners will buy its stakes in EnLink Midstream Partners and EnLink Midstream LLC. Devon increased its stock buyback authorization and said the deal also reduces its debt. The stock gained 6.1 percent to $41.72 while the two EnLink companies both fell.

SHINY: Signet Jewelers soared after the company had a stronger first quarter than Wall Street expected and said there are signs its sales are stabilizing. The company also maintained its annual forecasts. Signet traded as high as $75 a share in November but plunged after it reported weak sales, announced more store closings, and dealt with complications from the sale of its credit portfolio. The stock rose 23 percent to $53.40 Wednesday.

FEELING WISE: Athenahealth, a medical billing software company, climbed after it said it is exploring a possible sale. The company also said CEO Jonathan Bush resigned effective immediately. Investor Elliott Management recently offered about $6.5 billion to take Athenahealth private and said it had grown frustrated with the company’s performance. Athenahealth also named former GE CEO Jeff Immelt as its new chairman. The stock advanced 4.3 percent to $157.68.

ENERGY: Benchmark U.S. crude fell 0.9 percent to $64.92 a barrel in New York. Brent crude, used to price international oils, slipped 0.2 percent to $75.23 per barrel in London.

METALS: Gold fell 0.1 percent to $1,301.40 an ounce. Silver rose 0.9 percent to $16.69 an ounce. Copper gained 2 percent to $3.26 a pound.

CURRENCY: The dollar rose to 110.17 yen from 109.76 yen. The euro rose to $1.1770 from $1.1715.

OVERSEAS: The DAX in Germany rose 0.3 percent, as did the FTSE 100 in Britain. France’s CAC 40 lost 0.1 percent. Tokyo’s Nikkei 225 rose 0.4 percent and Hong Kong’s Hang Seng advanced 0.4 percent. South Korean markets were closed for a holiday.

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