US major stock indexes are rebounding today after the market suffered the worst week since March, as investors are shifting their focus to the Nov. 3 US presidential election and are awaiting a Federal Reserve policy decision on Thursday.
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The Dow Jones Industrial Average is rising 1.1% and the S&P 500 Index is up 0.8%. Meanwhile, the tech-heavy Nasdaq Composite Index retreated from earlier gains and is now down 0.2%.
Electric vehicle (EV) makers are on a good run. China’s Nio is surging almost 7% after the company delivered 5,055 vehicles in October, a new monthly record representing impressive 100.1% year-over-year growth. NIO delivered 31,430 vehicles in 2020 in total, representing an increase of 111.4% year-over-year. “Nio is expected to dominate ~30% of the premium passenger EV market or reach 334k units by 2025,” JP Morgan’s Nick Lai told investors, adding that the next big event is the 3Q20 result in mid-November.
Alibaba-backed XPeng Motors is up 6.8% after delivering a total of 3,040 of its smart EVs in October, a whopping 229% increase year-over-year. On a month-to-month comparison, delivery numbers declined from the month of September, during which the company delivered a record of 3,478 EVs.
Strong demand for cleaning and disinfecting products during the coronavirus pandemic, is prompting Clorox to raise its 2021 full-year sales and profit projections. Shares are jumping 4.8% as the maker of bleaches, wipes and cleaning products now expects 2021 fiscal full-year sales to increase between 5% and 9% versus flat to low single-digit growth in a previous forecast. Clorox sees stronger sales results over the balance of the 2021 fiscal year, including double-digit sales growth in the second quarter. Diluted EPS in fiscal year 2021 is forecasted to rise between 5% and 8%, or $7.70 to $7.95, up from prior guidance of mid-single-digit growth or a decline.
In other earnings news, Mohawk Industries is surging another 10% after soaring almost 11% on Oct. 30 as the company exceeded the Street’s expectations for the third quarter. The flooring products maker’s 3Q adjusted EPS of $3.26 crushed analysts’ estimate of $2.14 and grew 18.5% year-over-year. Revenue of $2.57 billion also came ahead of analysts’ estimate of $2.5 billion. The company attributed the 2.2% revenue growth in its topline to pandemic-induced demand for its products as people are spending more time at home and working remotely, thus driving increased investments in home remodeling.
In deal news, Dunkin’ Brands is climbing 6.4% after confirming that it will be snapped up by Inspire Brands in an all-cash deal valued at about $8.8 billion. Under the terms of the merger agreement, Inspire Brands will commence a tender offer to acquire all of the outstanding shares of Dunkin’ Brands for $106.50 per share to take the company private. The deal terms represent a premium of about 30% to Dunkin’ Brands’ 30-day volume-weighted average price and a premium of about 20% per share to its closing stock price on Oct. 23.
Nielsen is appreciating 5.6% as investors are welcoming the company’s move to spin off its global connect business unit. The global data analytics company will sell the unit to private equity firm Advent International in a deal valued at $2.7 billion. Upon deal closure, Nielsen Global Connect will be a private company and will continue to invest in the development and deployment of consumer goods measurement products and solutions.
Lockheed Martin is gaining 2.1% after winning a sole-source, cost-plus-incentive-fee and cost-plus fixed-fee contract from the US Missile Defense Agency worth just over $724 million, inclusive of all options. Under this follow on contract, LMT will conduct full development and lifecycle engineering for the Aegis Weapon System (AWS) fielding for cruisers, destroyers and Aegis Ashore configurations.
Last, but not least, AMC Entertainment is dropping 4.2% as the cash-strapped cinema chain filed a share prospectus to sell up to 20 million of its class A shares at a maximum offering price of $2.39 each in a move to raise about $47.7 million in fresh capital, according to a SEC filing.