Market Brief: June 29, 2020

A daily summary of news, analysis and data shaping the market.
Market Brief
Monday, June 29, 2020
Betting on Economic Recovery. U.S. stocks on Monday climbed sharply to start a holiday-shortened week in which upbeat economic data helped to overcome a reversal of reopening plans from a number of U.S. states amid the outbreak of Covid-19. The Dow Jones Industrial Average surged about 580 points, or 2.3%, to 25,596, powered predominantly by a gain in Boeing after U.S. air-safety regulators said they would begin key flight tests for the 737 MAX, representing a key milestone for the fleet that has been grounded for months. The S&P 500 index rose 1.5% to 3053, led by a 3.2% surge in industrials and a 2.1% rally in communication services. The technology-laden Nasdaq Composite lagged behind on the day, but finished up 1.2% at around 9874. The gains for the stocks came as economic data continued to surprise to the upside, with a report on pending home sales in May spiking
44.3%, compared with April, according to the National Association of Realtors. That beat expectations of a 15% rise. Sales were still 5.1% lower compared against the same time last year. That report helped to overcome weekend data that showed that coronavirus cases world-wide topped 10 million and deaths surpassed 500,000.
DJIA 25,595.80 580.25
S&P 500 3,053.24 44.19
NASDAQ 9,874.15 116.93
US 10-Year Note 0.63 -0.01
Dollar Index 97.48 0.05
Crude Oil 39.63 1.14
Gold 1,783.00 2.70
Global Dow 2,799.67 26.19
Powered by Dow Jones Research, FactSet, Eurostat, SIX Financial Information.
Boeing 737 MAX Test Flights Begin. Here’s What Comes Next.
The Federal Aviation Administration has started test flights of the Boeing 737 MAX. One of the planes took off shortly before 1 p.m. ET Monday from King County International Airport, aka Boeing Field, near Seattle, Reuters reported.

The test flights are an important step in the recertification of the troubled MAX jet, grounded for more than a year. But the flights aren’t the final step of the process. If everything goes as expected, investors can shift their attention to pilot training and certification by non-U.S. authorities, and then consider how the plane will be reintroduced by airlines amid the global pandemic.

Continue reading ›
Gilead Discloses Pricing Plans for Covid-19 Treatment Remdesivir
Biotech firm Gilead Sciences announced the price of its Covid-19 antiviral drug remdesivir Monday morning. The figure is lower than some estimates, and shares of Gilead were trading slightly lower shortly before the close on Monday.

In an open letter Monday morning, Gilead CEO Daniel O’Day said that a five-day course of remdesivir will cost private health insurers in the U.S. $3,120, and will cost governments of developed nations, including the U.S., $2,340. The company said it believes that remdesivir’s ability to shorten recovery times for Covid-19 patients will result in hospital savings of $12,000 per patient in the U.S. It said it chose to set its price for remdesivir lower “to ensure broad and equitable access at a time of urgent global need.”

Continue reading ›
BP to Sell Petrochemicals Arm to Ineos
British oil major BP on Monday announced the sale of its petrochemical arm to Ineos for $5 billion.

Ineos, the chemicals giant founded and owned by British billionaire Sir Jim Ratcliffe, will pay BP $400 million up front and $3.6 billion when the sale is completed, with a further $1 billion due in 2021. The deal completes a broader $15 billion asset disposal plan one year ahead of schedule and will give the company room to breathe after cutting its outlook earlier this month and revealing it would take up to $17.5 billion of charges in the second quarter.

Continue reading ›
Chesapeake Energy Files for Bankruptcy
Chesapeake Energy said in a Sunday statement that it had filed for bankruptcy protection. “Chesapeake intends to use the proceedings to strengthen its balance sheet and restructure its legacy contractual obligations to achieve a more sustainable capital structure,” the company said, adding that it will continue to operate as normal while it goes through the chapter 11 process.

Chesapeake was a pioneer in hydraulic fracturing, commonly known as fracking, the technology that led to a massive increase in American oil and gas production and at one point had drilling rights to an area of American land as large as the state of West Virginia, The Wall Street Journal noted.

Continue reading ›
Micron Earnings Show Spike in Memory Sales
Micron Technology said Monday afternoon that sales jumped in the third quarter and are expected to exceed expectations in the final period of its fiscal year.

The memory-chip maker reported fiscal third-quarter net income of $803 million, or 71 cents a share, compared with $840 million, or 74 cents a share, in the year-ago period. Adjusted earnings were 82 cents a share, compared with $1.05 a share in the year-ago period. Revenue rose to $5.44 billion from $4.79 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of 75 cents a share on revenue of $5.27 billion.

Continue reading ›
Impossible Sausage Is Coming to Burger King. What It Means for Beyond Meat.
Beyond Meat’s rival Impossible Foods is launching its faux-sausage product at Burger King—a signal to investors that interest in alternative protein remains high and that competition within the burgeoning industry remains strong.

Burger King, owned by Restaurant Brands International, sells the Impossible Whopper and will sell Impossible Sausage too. The Impossible Sausage will be available in Starbucks stores, as well as the top 30 diners in America, as rated by Yelp.

Continue reading ›
Kim Kardashian West Teams Up With Coty
Coty stock is popping in Monday morning trading on news that the cosmetics firm will take a 20% stake in Kim Kardashian West’s makeup line for $200 million, tying its fortunes even more closely with the reality TV star’s family.

The deal values Kardashian West’s brand, KKW, at $1 billion. Last year Coty purchased a $600 million stake in her sister Kylie Jenner’s beauty line, which the company values at around $1.2 billion.

Continue reading ›
Tesla Stock Turns 10 Monday. What a Decade It’s Been.
This is the 10th anniversary of Tesla’s initial public offering—June 29, 2010. What a decade it has been for investors. The coming decade should be just as interesting.

The IPO was priced at $17, valuing the company at about $1.7 billion. Today, Tesla is the second-most valuable car company in the world, behind only Toyota Motor. Tesla stock recently surpassed $1,000 a share and the company’s current market capitalization is roughly $180 billion.

Continue reading ›
Next Generation Apple iPhones Seen Shipping Without Power Adapter or EarPods
The next generation of Apple iPhones will ship without an in-box power adapter, TF International Securities analyst Ming-Chi Kuo asserts in a new research note on Monday.

The influential Hong Kong-based analyst, who has historically had close ties to Apple’s supply chain partners, also repeated his previous assertion that the new phones will no longer include in-box EarPods.

Continue reading ›
EV Truck Company Hyliion Is Soaring—and It Isn’t Even Publicly Traded Yet
Tortoise Acquisition Corp. stock has soared in recent days, as investors pile in ahead of its merger with Hyliion, an electric-powered heavy-duty truck company.

Shares of the special-purpose acquisition company, or SPAC, have risen 130% since the company announced a deal to combine with Hyliion on June 19, including gains of 42% last Friday and 29% on Monday. But its warrants haven’t kept up, and are trading at a big discount to where the stock is valued.

Continue reading ›
Dow Jones Contact Us
| Privacy Policy
| Cookie Policy
4300 Route 1 North, South Brunswick, NJ 08852
Copyright ©
2020 Dow Jones & Company, Inc. All Rights Reserved. Not for redistribution.
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market or economic conditions.

Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.