The markets closed in the green as a number of companies announced mergers an acquisitions and new developments from pharmaceutical companies raised investors’ sentiment. The Final Round panel discusses the latest.
SEANA SMITH: Welcome back to "The Final Round" here on Yahoo Finance. I'm Seana Smith. Stocks broadly higher as we start a new trading week. All three of the major averages up more than 1%. Remember, the NASDAQ coming off its worst week in six months. And taking a look at the gains today, we have the Dow on track to close up just around 350 points. The S&P just around 1%, and the NASDAQ is today's big winner, back above 11,000 and up nearly 2%.
SEANA SMITH: That does it for the trading day today. Again, all three of the major averages recording gains. The Dow up 350 points, S&P up just around 1.3%, and the NASDAQ back above 11,000, closing up nearly 2% today. Some deal activity, and also some news on the coronavirus vaccine front, helping to boost investor sentiment. Taking a look at some of the big gainers today in the Dow, American Express and Boeing, those two stocks are some of the big contributors to the index's gains today. We also saw solid gains from Apple. That stock up just around 3%. United Health was also a big outperformer.
Taking a look at some of the sector action, all 11 of the S&P sectors. In the green today. Real estate, technology and health care are among the outperformers. The re-opening trade is something that also stands out to us here, as we take a look at some of the winners today. A lot of those these catching a bit. Airlines broadly higher. Cruise lines also adding to gains, hotel chains. Taking a look at Marriott, for example. That stock up just around 5%. Hyatt up just around 7%.
And taking a look at the S&P leaders, Kohl's and Tapestry, those two stocks are the leaders today in the S&P, with Kohl's up 9 and 1/2% and Tapestry up at just around 8%. But of course, some of the biggest stories that we're following is some of that deal making. Nvidia buying Arm for $40 billion. Oracle and TikTok, more of a partnership, I guess is what we can call it at this point. We'll dig into that a little bit later in the show. And then also on the pharma side of things, in that space, we had Gilead buying Immunomedics. And of course, that's stock, Immunomedics nearly doubling today, and Gilead up just around 2 and 1/2%.
But I want to bring in my co-host for the next 60 minutes, Myles Udland. We also have Yahoo Finance editor-in-chief, Andy Serwer, as well as Emily McCormick and Jared Blikre joining us today. And Myles, solid gains here to start the new trading week, but what stands out to you in today's action?
MYLES UDLAND: Well, I think we've got to start with Apple, just because I can see in the corner of my screen here, the NASDAQ 100 heat map, and we see that Apple is really kind of pulling away from the rest of the FANGs. Today the stock is up 3%, while we have the FANG group lagging behind the market overall. And this coming on a day when we did see tech in such a leadership role. And I do think that the import that Apple has to the market on an individual basis is a slight change in character relative to the way that that group had been more of a bellwether group.
And I think just overall, looking at the market right now, and I know we're going to get into it with a couple of our guests here over the next hour, about whether that correction we saw in the last week or so is the correction for this phase, what's coming up as we get towards the election. But over the weekend, when you have David Kostin and Mike Wilson of Goldman and Morgan Stanley respectively, coming out and saying we still like 3,600 on the S&P, meaning we still like record highs for the S&P as we get towards the end of the year, I think that is a kind of a heat check.
Because we could have had strategists after a 7% correction say, this is a change in character, we're looking at 2,900 now, we think things are getting worse. But the backdrop that most strategists have been killing off of and one maybe we haven't talked enough about, is what happened in second quarter earnings season. We had 80 some odd percent of companies that offered guidance coming in better than expectations.
Granted, there was a lowered bar coming into the most recent earning season, but it was cleared and then some by most every company. And analysts right now are looking at a better than feared, I think is the right way to say it, outlook. And it pretty much backs up the bull case up and down the street. And so to have such a consensus view that we can have a 7% selloff and there's still not much to fear in terms of the overall narrative underwriting this sort of bull run, I think is notable to take stock of, giving how messy the market got for a couple of days there.
SEANA SMITH: It certainly is notable, because I think over the last what, nine, 10, 11 trading days, there's been lots of questions just in terms of how big a drop we could see. We know that it was very drastic, it was very quick. I can it spooked a lot of investors out there. Then, of course, the question is, where do we go from here? Have we already seen the worst of it? Or do we have another bigger pullback out ahead of us?
And Andy Serwer, I'd love to get your thoughts on that, because going off of what Myles just said, Goldman coming out on Friday saying that they're still optimistic about the path of the market, UBS today saying that there's opportunity here to enter the market at better levels, and maybe the volatility of the past week and a half is exactly what we needed. Maybe this helps them, reassure us just in terms of where we currently are today.
ANDY SERWER: Well, I think there is a case to be made for optimism based on today's trading, Seana. And I'd like to take you back, Seana Smith, to 12 months ago. I mean, because half of today's action, you could almost imagine a non-COVID world. Let me explain. A lot of enthusiasm about Apple. Apple Day tomorrow. Gee, that sounds reminiscent of a time, a more innocent, less diseased time in the world, right? So that's sort of what propelled the market.
And of course, merger Monday. Merger Monday, and it was a big merger Monday with some very significant deals. I mean the Gilead deal is huge. And I am particularly intrigued by the Nvidia transaction. Arm is such an interesting company and has always been a leader in this business. But rarely do you see a deal of this magnitude where the buyer's stock goes up the way Nvidia's did today, up almost 6%. What is it? A $40 billion deal, biggest in the history of chips. And so this suggests to me, that with all the problems that Softbank is going through, you might have had a slightly motivated seller. And Nvidia might have gotten a fairly good price. So there's that.
Now the other 50% is a little bit more typical of what we've been seeing for months and months and months, which is you had the vaccine trade picking up with AstraZeneca, seeing that their trial is going to get back. And that's what spurred the back to home trade, back to work trade, I should say, back to work trade as well. And I think AMEX in particular, is beneficiary of that. It's interesting, if you correlate the vaccine trade and the back to work trade, it's pretty, there's a pretty good R-squared there. But if you take the first half of my little diatribe, right, it speaks to the Seana Smith case for optimism.
SEANA SMITH: It exactly does, because when you see a day like today when there are so many big deals happening, that corporate deal making I think is certainly adding to that investor sentiment, the investor optimism that we are seeing play out in the market today.