Wall Street showed strength throughout the session amid progress on a coronavirus vaccine and corporate merger and acquisition news — and more in Monday’s WealthPress stock market update.
Eli Lilly and Co. (NYSEArca: LLY) and Incyte Co. (Nasdaq: INCY) released a joint statement saying they have a drug in development that cuts recovery time when used with remdesivir, an antiviral medication.
Meanwhile, Oracle Co. (NYSEArca: ORCL) emerged as the winner in the bidding for TikTok after the company announced it will serve as the trusted technology provider, adding they have a 40-year track record providing secure, highly performant technology solutions.
The Russell 2000 surged 2.7% following a late day push to 1,538, closing above its 50-day moving average.
The Nasdaq snapped a two-session slide after gaining 1.9%, with a midday peak of 11,118.
The S&P 500 gained 1.3% while trading to a session high of 3,402.
The Dow extended its winning streak to two straight sessions after rising 1.2%, with the intraday high reaching 28,086.
Real Estate and Technology led sector strength after soaring 2.5% and 2.1%, respectively. There was no sector weakness.
CBS Corporation Common Stock (Nasdaq: VIAC) is selling its CNET Media Group to Red Ventures for $500 million.
Gilead Sciences Inc. (Nasdaq: GILD) announced it is buying Immunomedics Inc. (Nasdaq: IMMU) for $21 billion. Gilead’s price represents a 108% premium to last Friday’s closing price for shares of Immunomedics. This follows a remarkable few months of clinical, regulatory and commercial execution around the drug Trodelvy.
Meanwhile, Seattle Genetics Inc. (Nasdaq: SGEN) and Merck & Co. (NYSEArca: MRK) announced two new strategic oncology collaborations. As part of the agreement, Seattle Genetics will receive a $600 million payment up front, and Merck will make a $1 billion equity investment in 5 million shares of Seattle Genetics stock at a price of $200 a share.
European markets closed mixed after AstraZeneca PLC (NYSEArca: AZN) announced clinical trials of its coronavirus vaccine resumed in the United Kingdom. The study was paused last week after one person in the trial became ill.
UK’s FTSE 100 and Germany’s DAX 30 slipped 0.1%. France’s CAC 40 climbed 0.4% and the Stoxx 600 added 0.2%. The Belgium20 edged up 0.1%.
Asian markets settled higher following news that Japan’s ruling Liberal Democratic Party was set to pick a new leader. Yoshihide Suga is expected to win and likely continue Shinzo Abe’s “Abenomics” policies of easy lending and deregulation.
South Korea’s Kospi jumped 1.3% while Japan’s Nikkei and Australia’s S&P/ASX 200 both rose 0.7%. China’s Shanghai and Hong Kong’s Hang Seng were up 0.6%.
No major announcements.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) extended its winning streak to three-straight sessions with the intraday high reaching $165.08. Near-term and lower resistance at $165-$165.50 was breached but held, with more important hurdles at $166 and the 50-day moving average.
Rising support is at $164-$163.50 followed by $162.50-$162.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was down for the second straight session following the intraday fade to 25.38. Upper support at 25.50-25 and the 50-day moving average was breached but held.
Lowered resistance is at 26.50-27, followed by 28.50-29 and the 200-day moving average.
The SPDR S&P 500 ETF (NYSEArca: SPY) was up for the second straight session after testing a high of $340.38. Prior and lower resistance at $340-$340.50 was cleared but held. A close above the latter would indicate additional strength toward $342.50-$342.
Support is at $337-$336.50, followed by $335.50-$335.
The Health Care Select Sector SPDR Fund (NYSEArca: XLV) traded to a second-half high of $106.66. Current and lower resistance at $106.50-$107 was cleared but held on the close back above the 50-day moving average. A move above the $108 level would signal a possible retest toward $109.50-$110, with the recent all-time peak at $109.74.
Support is at $105.50-$105, with backup help at $104-$103.50.
The Federal Reserve will meet Tuesday and Wednesday with an update that is not expected to reveal any policy changes. The Fed said earlier this year it will pursue an average inflation target and monitor any shortfall in employment.
The main focus will be on the committee’s revised forecasts, where analysts expect upward revisions to gross domestic product and inflation outlooks, and a downward decline for unemployment. The dot plot should show no change in rates for several years.
Wall Street is not anticipating any changes to forward guidance currently, or to quantitative easing, as the Fed takes a more wait-and-see approach for now. A number of Fed members have suggested action on forward guidance would be premature.
Check back for the most important news and numbers each day after the closing bell here in the WealthPress stock market update.