Stocks gained ground Monday, bolstered by strength in overseas markets, as mixed company news set the tone in early trade.
XDow stock Nike (NKE) jumped past a buy point after a pair of analyst upgrades. Israel's SodaStream (SODA) spiked on news that PepsiCo (PEP) would acquire the company for $3.2 billion. Tesla (TSLA) appeared set for a fifth straight decline. And Alexion Pharmaceuticals (ALXN) traded higher after positive news from the Food and Drug Administration.
The Dow Jones industrial average, the S&P 500 and the Nasdaq Composite all traded 0.3% higher just after the open. Nike was the top-gaining S&P 500 and Dow stock. Tesla posted the weakest early move among Nasdaq 100 stocks.
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Tariffs, Fed Minutes; China, Europe Rise
Trade war news and the Federal Reserve are likely to dominate market news this week. Another tranche of tariffs on China-made imports is set to go into effect on Thursday. That means another probable round of retaliatory tariffs from China.
The Federal Reserve releases minutes from its July 31-Aug. 1 meeting on Wednesday. On Thursday, the Kansas City Federal Reserve Bank's broadly followed annual global economic symposium kicks off in Jackson Hole, Wyo.
China's markets booked a strong session Monday, picking up on Friday's gains in the U.S. and riding optimism toward U.S.-China trade talks. The Shanghai Composite jumped 1.1%. Hong Kong's Hang Seng booked a 1.4% gain.
Investors in Japan were less optimistic, sending the Nikkei 225 down 0.3%. In Europe, markets knocked out a solid advance. Frankfurt's DAX scrambled ahead 1.1%. The CAC-40 in Paris climbed 0.7%, and London's FTSE 100 swung up 0.4% in afternoon trade.
Nike, Five Below, Baozun Up; Tesla Slides
On the Dow, Nike grabbed an early 1.9% advance after a pair of analyst actions. Piper Jaffray upgraded the stock to overweight, from neutral, and set its price target at 93. Susquehanna upgraded Nike to positive, from neutral, also with a 93 price target. Monday's gain lifted shares narrowly above an 81.10 buy point in a five-week flat base.
Among IBD 50 stocks, Baozun (BZUN) was the top early advancer, up nearly 4%. A six-day sell-off sent the stock last week to test support at its 200-day moving average. Shares found support, and are now looking for their third straight gain as they attempt to climb the right side of a possible base pattern.
IBD Leaderboard issue Five Below blasted 2% higher to seize a new high in powerful trade. The gain sent shares out of a buy range above a 104.09 buy point in a flat base.
Tesla fell more than 3% as new comments from Chief Executive Elon Musk failed to soothe investor concerns over the company's status. Tesla shares are down 21% from an Aug, 7 high, falling on Wednesday more than 8% below a 373.83 buy point and triggering the automatic sell rule.
Alexion Pharmaceuticals traded flat after announcing the FDA had accepted a priority review of Alexion's ALXN1210 treatment for a rare blood disorder. The move shortens the review process to eight months, from 12, with the FDA setting an end date of Feb. 18, 2019. The company said it is preparing a similar application in Japan. Alexion has posted five straight weekly losses, and trades within an 11-month consolidation.
Estee Lauder (EL) jumped more than 4% as investors focused on a solid fiscal fourth-quarter performance, rather than weak guidance.
Results from Chile's Latam Airlines (LTM) and industrial supplier Nordson (NDSN) are due after the close.
Copper Jumps, Oil Prices Flatten
Copper prices rebounded for a third day, up 1.2% early Monday. Copper has gained nearly 5% from a Wednesday low, but remains down almost 20% from its early June high.
Oil prices shed early losses to trade flat, and were being carefully watched after a seven-week decline left futures testing their lows from late June. It was oil's longest decline since the global oil glut that resulted in a sell-off in late 2014 and into early 2015. West Texas Intermediate traded down a fraction, just below $66 a barrel.
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