Monday 25 May, 2020

Banks, energy stocks lead early gains for US market indexes

Traders on Wall Street

Traders on Wall Street

U.S. stock indexes moved higher in early trading Friday, adding to the market's modest gains from a day earlier.

Banks and other financial stocks led the gainers. Energy companies also rose. Utilities stocks were the biggest laggard.

KEEPING SCORE: The Standard & Poor's 500 index gained 8 points, or 0.4 percent, to 2,442 as of 10:09 a.m. Eastern Time. The Dow Jones industrial average rose 75 points, or 0.4 percent, to 21,258.

The Nasdaq composite index added 13 points, or 0.2 percent, to 6,335. The Russell 2000 index of small-company stocks picked up 5 points, or 0.4 percent, to 1,420. All four were trading above their most recent closing highs.

STREAM THIS: Pandora climbed 6.3 percent on news that SiriusXM will invest $480 million in cash in the online radio company. SiriusXM, which is buying preferred stock and taking a 19 percent stake in Pandora, will also select three people to be named to Pandora's board.

Pandora is breaking off a deal with investment firm KKR from last month. Pandora added 53 cents to $8.95.

BIG DATA: Traders bid up shares in DuPont Fabros Technology after the data real estate investment trust and owner of wholesale data centers was acquired by another REIT, Digital Realty Trust.

The deal is an all-stock transaction valued at about $7.6 billion. DuPont Fabros Technology shares jumped $7.20, or 13 percent, to $62.56. Digital Realty slipped 96 cents to $115.79.

PAINFUL MOVE: Endo International slumped 12.9 percent a day after the Food and Drug Administration asked the drugmaker to take its extended-release pain drug Opana ER off the market because of the risk of abuse from patients injecting it. The stock slid $1.78 to $12.

ENERGY: Benchmark U.S. crude was little changed at $45.62 a barrel in New York. Brent crude, used to price international oils, was also little changed at $47.86 a barrel in London.

TREASURY YIELDS: Bond prices fell. The 10-year Treasury yield held rose to 2.22 percent from 2.19 percent late Thursday.

CURRENCIES: The pound lost more than 2 cents versus the dollar after the Conservatives lost their majority in Parliament, which could send Britains' negotiations to leave the European Union, due to start June 19, into disarray.

The pound weakened to $1.2735 from $1.2943. The dollar fell to 110.72 yen from 109.94 yen late Thursday. The euro weakened to $1.1175 from $1.1222.

OVERSEAS: Germany's DAX rose 0.6 percent, while France's CAC 40 was 0.6 percent higher. Britain's FTSE 100 gained 0.7 percent.

Japan's Nikkei 225 added 0.5 percent, while South Korea's Kospi rose 0.8 percent. Hong Kong's Hang Seng slipped 0.1 percent.

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