Who doesn’t like a big Grand Finale? The same is true on Wall Street. Today is the mid-year point for the markets, and investors are trying to finish on a high note.
After starting in the red, a bullish report on home sales helped lift stocks.
Here are the five things you need to know about the global financial markets on Monday:
1. Halftime report: The S&P 500 is up modestly, erasing earlier losses after strong real estate news. The Dow Jones Industrial Average is hovering around flat, and he Nasdaq extended its early gains and is up about 0.2%.
The year started ominously due to emerging market concerns and severe winter weather, but things have turned around on Wall Street along with the warmer temperatures.
The S&P 500 is up about 6% during the first six months of 2014, even after losing some ground last week. Of course, the first-half rally pales in comparison with 2013 when the S&P 500 soared 12.6% by this point.
Volatility has all but vanished on Wall Street. The VIX, or so-called “fear gauge,” recently plunged to seven-year lows and remains at just over 11 — which is far lower than its historical average of about 20.
2. More housing hopes: Wall Street cheered new signs of progress in the very important housing market. The National Association of Realtors said U.S. pending home sales jumped 6.1% in May, representing the biggest monthly increase since April 2010. Economists had been anticipating a more modest increase.
The bullish housing news lifted shares of home builders like Lennar, KB Home and PulteGroup.
3. Stock movers — Yahoo, Mannkind, BNP Paribas: Yahoo enjoyed a 2% bump after the Internet company was upgraded to “overweight” by Piper Jaffray.
While Yahoo’s core business remains “challenged,” analyst Gene Munster said his bullish call is based on the belief that the company’s stake in Alibaba is “undervalued.” Last week, the Chinese e-commerce giant revealed plans to list its highly anticipated initial public offering on the New York Stock Exchange.
Shares of MannKind soared 10% after the company said the Food and Drug Administration approved a powder form of insulin that is inhaled.
The U.S. Department of Justice is expected to announce a multi-billion dollar settlement with French banking giant BNP Paribas on Monday. The bank has been subject to a long running criminal investigation over accusations that it breached U.S. sanctions on Iran, Sudan and other countries. Shares of BNP dipped slightly in Paris.
U.S. Steel shed 1% as investors react to the company being kicked out of the S&P 500. The steel maker, an original member of the S&P 500, is being replaced by Martin Marietta Materials, which traded about 2% higher on Monday.
PPG Industries logged a 3% gain after unveiling plans to acquire a Mexican coatings company for about $2.3 billion.
Bank of New York Mellon popped over 4% as activist investor Nelson Peltz and his Trian Partners revealed a $1.05 billion stake in the financial company.
4. Will Facebook fury hit stock?: Facebook is in hot water after it was revealed the social network conducted a ‘mood’ experiment on users without their knowledge or explicit consent. Facebook’s terms of service give the company permission to conduct this kind of research, but many users have reacted with anger.
Wall Street, however, was unmoved by the drama. Facebook’s stock is up slightly.
5. Dubai crumbles, Bulgaria booms: Investors continue to give Dubai’s stock market a big thumbs down.
The DFM General Index plunged 4.4% on Monday due to worries about property stocks, especially contracting giant Arabtec Holdings. Dubai plummeted 22% in June, its worst month since 2008.
On the other hand, Bulgaria’s stock market raced almost 5% higher after the European Union gave the green light to the country providing $2.3 billion in state aid for banks. The move follows a series of arrests of men accused of fueling bank runs.
Other European markets were mixed in midday trading. Asian markets closed mixed. The main loser of the day was Australia’s ASX All Ordinaries index, which dropped by 0.9%.
It’s also worth keeping an eye on Argentina’s markets. The country faces a Monday deadline to pay two groups of bondholders. The way things unfold from here will determine Argentina’s ability to move past its 2001 default and regain access to foreign funds.
