Stocks opened sharply higher Wednesday, tracking Europe's bounce from its Brexit dive.
The S&P 500 jumped 1%, the Nasdaq 1.1% and the Dow Jones industrial average 0.9% at the start of the stock market.
Buying interest rippled into Asia's markets, sending Tokyo's Nikkei 225 up 1.6% and Hong Kong's Hang Seng index to a 1.3% gain. China's more insular mainland markets posted smaller gains, with the Shanghai composite up 0.7%.
Europe's markets rallied briskly for a second straight day, with the CAC 40 in Paris and London's FTSE 100 up more than 2% each, and the Frankfurt Stock Exchange's DAX ahead 1.5% entering afternoon trade. On London's market, miner Anglo American and homebuilder Taylor Wimpey led the FTSE 100 stocks, up about 6% each.
Key stocks in motion on U.S. markets included Nike (NKE), Merck (MRK), General Electric (GE), Medivation (MDVN) and Universal Display (OLED).
Economic News
The Commerce Department reported personal income and spending trends were positive in May, but down from April's pace. Personal income rose 0.2%, vs. a revised 0.5% increase in April and shy of consensus views for a 0.3% advance. Spending rose 0.4%, down from April's revised 1.1% gain but in line with forecasts.The two-month gain points to a spending increase in Q2 vs. Q1.
Consumer prices ticked up 0.2%, with core prices showing no real impact from energy and food. That was a notch below April's 0.3% rise, and in line with consensus views.
The National Association of Realtors reports May pending home sales numbers at 10 a.m. At 10:30 a.m., the Energy Information Administration releases its weekly oil inventories report.
The Federal Reserve pans to release the second portion of its stress test results for big banks after today's close, at 4:30 p.m.
Nike, Medivation, Universal Display
Nike erased losses in extended trading and climbed 0.5% at the open after reporting late Tuesday its fiscal Q4 earnings were flat and revenue rose 6%, just below the consensus expectation.
Gas pipeline leader Williams Co. (WMB) fell 0.8% after a court ruling Tuesday allowed Energy Transfer Equity (ETE) to terminate a merger agreement valued at $33 billion. Energy Transfer shares rose 3%.
IBD 50 stock Universal Display was flat at the open. The company announced Tuesday it would acquire the organic light emitting diode intellectual property assets of German chemical maker BASF (BASFY). The amount of the deal was not disclosed. Universal shares are rising from support at the 50-day moving average.
Medivation jumped 3%. Medivation shares have been forming a flat base since May, following a gain of more than 20% from its prior breakout. The maker of cancer treatments is the target of a takeover effort by France's Sanofi (SNY). Sanofi shares were up 2% early Wednesday.
Oil, Gold, Dollar & Bonds
Oil prices gained a bit less than 1%, putting West Texas Intermediate above $48 a barrel and Europe's Brent crude benchmark just below $49. Gold ticked slightly higher, trading above $1,320 an ounce. Bonds were effectively flat, leaving the 10-year Treasury yield unchanged. The dollar slipped vs. both the euro and the yen.
