Market News 16/6/2020

Jun 17, 2020 | Market Updates

During Market hours:

  • Record-setting U.S. data, positive coronavirus trial results and the potential for more fiscal stimulus sparked a rally on Wall Street.
  • The Dow (Symbol: DIA) jumped 2%. The S&P 500 (Symbol: SPY) climbed 1.9%. The Nasdaq (Symbol: QQQ) advanced 1.8%.
  • Apple (Symbol: AAPL) — Shares of Apple rose 2.65% after a Citi analyst raised his 12-month price target on the technology giant to $400 per share from $310 per share, the highest price forecast on Wall Street.
  • United (Symbol: UAL), American (Symbol: AAL), Delta (Symbol: DAL) — Shares of United Airlines gained 3.1% as the industry tries to bounce back from the coronavirus-induced slowdown. Shares of the airline have more than doubled in the last month after falling to a multi-year low in March. Other airline stocks on the move included American and Delta, which rose 2% and 2.8%, respectively.
  • Vulcan (Symbol: VMC), Summit Materials (Symbol: SUM)– Shares of a number of construction and material companies soared on a Bloomberg news report that the Trump administration is eyeing a nearly $1 trillion infrastructure proposal. Vulcan and Summit Materials jumped 9%. Caterpillar (Symbol: CAT) jumped more than 5%.
  • Eli Lilly (Symbol: LLY) — Shares of Eli Lilly soared 15.7% after the pharmaceutical company said Tuesday its breast cancer drug Verzenio met the key goal in a late-stage trial. Eli said in a statement that its phase-three study demonstrated positive results in 5,637 people whose early breast cancer is at a high risk of recurrence. Analysts upgraded Eli Lilly to buy from neutral following the news.
  • Carnival (Symbol: CCL), Norwegian Cruise Line (Symbol: NCLH), Royal Caribbean Cruises (Symbol: RCL) — Shares of Norwegian Cruise Line Holdings jumped 4.9% as investors continue to return to the sectors most pummeled by Covid-19. Carnival Corporation rose 5%, and Royal Caribbean jumped 2.8%. For the year, however, all three have lost more than half their value.
  • Nordstrom (Symbol: JWN), Gap (Symbol: GPS), Kohl’s (Symbol: KSS) — Retail stocks climbed higher on Tuesday after retail sales data showed the largest month-over-month increase on record in May. Shares of Nordstrom rose 12.9%, while Gap gained 8.5% and Kohl’s surged 9%.
  • Nvidia (Symbol: NVDA) — Shares of chipmaker Nvidia dipped 1.2% after the stock was downgraded by Morgan Stanley to equal-weight from overweight. The firm said in a note that it still believes in the longer-term story for the company but its current valuation leaves “very little room for error.”
  • WW International (Symbol: WW) — Shares of the Weight Watchers parent soared 19% after the company said it had 4.9 million subscribers as of June 6, up 7% from a year earlier. Digital subscribers hit an all-time high, getting a boost as more people stayed at home due to the COVID-19 pandemic.

After Market hours:

  • Oracle (Symbol: ORCL) — Shares of the technology company dropped as much as 5% in extended trading after the company released its fourth-quarter earnings. Oracle reported earnings of $1.20 per share excluding some items on revenue of $10.44 billion, while analysts estimated earnings of $1.15 per share on revenue of $10.65 billion, according to Refinitiv. “Our overall business did remarkably well considering the pandemic, but our results would have been even better except for customers in the hardest-hit industries that we serve such as hospitality, retail, and transportation postponing some of their purchases,” Oracle CEO Safra Catz said in a statement.
  • Norwegian Cruise Line (Symbol: NCL) — Norwegian’s stock dropped 13% after the closing bell after the company announced it is extending its suspension of global cruises to include trips between August 1 and September 30 for its three main cruise brands. The cruise line said the cancellations exclude Seattle-based Alaska trips in September. Select voyages, including Canada and New England itineraries, are also canceled through October 2020 due to travel and port restrictions. Shares of Carnival (Symbol: CCL) and Royal Caribbean (Symbol: RCL) Cruises each fell more than 7% in after-hours trading as well.
  • Southwest Airlines (Symbol: LUV) — The airline’s stock fell 2% in extended trading after it announced plans to keep middle seats open on flights through at least Sep. 30. The company reinforced its face mask policy and will deny boarding to any traveler not wearing a mask. Southwest also said it is requiring customers to complete a health declaration during online check-in. Passengers will have to confirm that they do not have a fever or other symptoms of Covid-19, and have not been diagnosed with, or exposed to the virus in the 14 days prior to travel. United Airlines (Symbol: UAL), Delta Air Lines (Symbol: DAL) and American Airlines (Symbol: AAL) also saw their shares fall in after-hours trading.

What to watch for on Wednesday:

  • ‘Mortgage applications and housing starts’ data are set for release Wednesday.