Dow jumps 465 points as Trump prepares to head home

By Chris Ciaccia FOXBusiness

Stimulus talks continue between Pelosi, Mnuchin.

Stocks rallied Monday, picking up momentum in the final hours of trading, as President Donald Trump announced he would be heading home from Walter Reed National Military Medical Center tonight.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES28148.64+465.83+1.68%
I:COMPNASDAQ COMPOSITE INDEX11332.485122+257.47+2.32%
SP500S&P 5003408.6+60.16+1.80%

The Dow Jones Industrial Average rose 465 points or 1.6%, while the S&P 500 rose 1.8% and the Nasdaq Composite over 2.3%. As stocks rallied, money moved out of bonds pushing the yield on the 10-year treasury to 0.76% – the highest since June.

Vaccine-related stocks were in focus around Trump’s treatment,  which included Gilead Science Inc.’s Remdesivir and a cocktail from Regeneron Pharmaceuticals Inc. which saw its stock jump 7%.

TickerSecurityLastChangeChange %
GILDGILEAD SCIENCES INC.63.60+1.43+2.30%
REGNREGENERON PHARMACEUTICALS INC.605.08+40.28+7.13%

Along with Trump’s recovery, stimulus talks continue between House Speaker Pelosi and U.S. Treasury Secretary Steven Mnuchin, according to her office.https://platform.twitter.com/embed/index.html?dnt=false&embedId=twitter-widget-1&frame=false&hideCard=false&hideThread=false&id=1313162099602927619&lang=en&origin=https%3A%2F%2Fwww.foxbusiness.com%2Fmarkets%2Fstocks-rebound-as-trump-responds-to-covid-19-treatment&siteScreenName=FoxBusiness&theme=light&widgetsVersion=ed20a2b%3A1601588405575&width=550px

TickerSecurityLastChangeChange %
AAPLAPPLE INC.116.50+3.48+3.08%
NFLXNETFLIX INC.520.65+17.59+3.50%
NVDANVIDIA CORPORATION545.70+23.21+4.44%

Technology stocks were strong led by Apple Inc., Netflix Inc. and Nvidia which said it would build Britain’s largest supercomputer, dubbed “Cambridge-1,” just weeks after the company announced its intention to acquire British chip designer ARM Holdings from Softbank.

TRUMP’S POSITIVE COVID-19 TEST GIVES STOCKS WILD RIDE

In economic news, the ISM Non-Manufacturing Index for September jumped to 57.8, beating estimates of 56.3, as the services sector continued to improve. A level above 50 is considered to reflect expansion.

In corporate news, AMC shares tumbled after Cineworld, parent company of Regal, announced plans to suspend over 500  theatres in the U.S. starting October 8 due citing “challenging theatrical landscape” tied to COVID-19.

TickerSecurityLastChangeChange %
AMCAMC ENTERTAINMENT HOLDINGS INC4.13-0.52-11.18%

In deal-making, drug stocks were in focus.

TickerSecurityLastChangeChange %
BMYBRISTOL-MYERS SQUIBB CO.59.20+0.48+0.82%
MYOKMYOKARDIA INC220.34+80.74+57.84%

Bristol-Meyers Squibb Co. announced its intention to acquire MyoKardia for $13.1 billion, or $225 a share, in cash, a 62% premium to its Friday closing price.

TickerSecurityLastChangeChange %
DKNGDRAFTKINGS60.55-3.23-5.06%

DraftKings Inc. shares were under pressure after the online casino operator announced a plan to sell 32 million shares to shore up its balance sheet and raise money. Sixteen-million shares will be sold by the company itself and the other 16 million shares will be sold by other shareholders.

TickerSecurityLastChangeChange %
PYPLPAYPAL HOLDINGS INC.196.85+4.94+2.57%

PayPal Holdings Inc. shares rose after its Venmo unit announced a new Visa-branded credit card. The card offers 3% cashback on certain purchases, as well as personalized rewards and the ability to manage finances.

Oil rebounded with a gain of nearly 6% to $39.22. Gold ticked higher to $1,912.50 an ounce.

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