The stock markets of the United States rallied as investors become optimistic that the conflict between Russia and Ukraine will ease. The American government is also expected to pull back its air strikes against the ISIS in Iraq.
Today, Russia’s Foreign Minister Sergei Lavrov revealed that an agreement has been reached to provide aid to the Ukrainian government. According to Ukraine President Petro Peroshenko, the Red Cross will be conducting an international humanitarian mission, which involves the Europen Union, United States and Russia at the city of Luhansk.
Separately, the multiple airstrikes of the United States hit the ISIS militants in Iraq. On the other hand, the negotiators of Israel and Palestine laid out a long-term agreement concerning the Gaza Strip.
In a telephone interview with Bloomberg, Bill Schultz, the chief investment officer at McQueen, Ball & Associates commented, “There is some sense that the geopolitical risk out there is waning, or at least the situation is better than the belligerent talk that was coming out in the middle of last week. We’re at lower levels than we were two weeks ago, so there’s a better entry point if you look to add stocks to your portfolio.”
On the other hand, Jonathan Krinsky of MKM Partners LLC suggested that a “tradeable bounce” may be in progress.”
• Dow Jones Industrial Average (DJIA)- 16,569.98 (+0.10%)
• S&P 500- 1,936.92 (+0.28%)
• NASDAQ- 4,401.33 (+0.70%)
• Russell 2000- 1,142.26 (+0.96%)
• EURO STOXX 50 Price EUR- 3,047.56 (+1.35%)
• FTSE 100 Index- 6,632.82 (+1.00%)
• Deutsche Borse AG German Stock Index DAX- 9,180.74 (+1.90%)
• Nikkei 225- 15,130.52 (+2.38%)
• Hong Kong Hang Seng Index- 24,646.02 (+1.29%)
• Shanghai Shenzhen CSI 300 Index- 2,365.35 (+1.47%)
Stocks in Focus
The stock price of Dean Foods Co (NYSE:DF) declined more than 3% to $15.26 per share stated that it is operating in the most-difficult environment in the history of its business. The largest dairy processor in the United States is challenged by higher prices for raw milk. During the second-quarter, the prices of raw milk increased 6% and 31% from last year to its highest level at $23.66 per hundred-weight. The company also posted adjusted losses of $0.14 per share on $2.39 billion in revenue compared with the $0.05 losses per share on $2.32 billion in revenue estimated by Wall Street analysts.
The shares of MannKind Corporation (NASDAQ:MNKD) rose nearly 5% to $8.53 per share after the company announced that Sanofi SA (ADR) (NYSE:SNY) will be responsible for all the commercial, regulatory and development activities for the Afrezza, its inhalable diabetes drug. MannKind will receive $150 million to alleviate concerns regarding its cash burn, and will be eligible to receive milestone payments of $775 million.
Veritiv Corporation (NYSE:VRTV) gained more than 16% to $44.99 per share after Seth Klarman of Baupost Group disclosed a 14.06% stake in the company.