Hope is running high in Europe that the U.K. will remain in the EU. As a result, The Europe Stoxx 600 index jumped a whopping 3.7 percent on Monday and U.S. stocks jumped on the “Remain” bandwagon.
The U.K. isn’t set to vote on whether to remain in the EU or exit it, typically called the Brexit, until Thursday. But investors decided that due to some recent polls pointing in that direction, it’s a done deal. The value of the Sterling currency popped and European banking names like Deutsche Bank added value.
The U.K. FTSE added 3 percent to close at 6,204, the German DAX gained 3.4 percent to end the day at 9,962 and the French CAC also increased by 3 percent to close at 4,340.
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In midday trading in the U.S., the Dow Jones Industrial average rose 197 points to 17,872, the S&P 500 gained 21 points to trade at 2,092 and the Nasdaq added 70 points to trade at 4,869. The S&P Retail ETF is up by over 1 percent to sell at $42.20.
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Wal-Mart Stores Inc. is up slightly by 1 percent to $71.38 following confirmation that it is forming a strategic alliance with Chinese online retailer JD.com Inc. JD.com is taking ownership of Wal-Mart’s Chinese e-commerce site Yihaodian and Wal-Mart is getting approximately 144 million shares of newly issued JD.com stock. JD.com stock is higher by over 8 percent to $21.83.
Big gainers in the retail industry include Fossil Inc., which is up over 6 percent to sell at $31.53. The stock has popped over 17 percent in the past 5 days after hitting a five-year low, in a siren call to value investors. Fitbit Inc. is also higher by over 4 percent to $13.36 as it promotes its sleep tools as a way to develop healthy sleeping habits.
Duluth Holdings Inc. is rising by over 5 percent to trade at $25.76 and Bon-Ton Stores is up over 6 percent to sell at $1.49 on no news.
Nike Inc. is higher by over 1 percent to $54.63 following the win by the Cleveland Cavaliers of the NBA Championship. LeBron James is one of Nike’s biggest stars and there has been a lot of talk about the quickly ascending Under Armour star Steph Curry, who plays for the Golden State Warriors. But in the series, Curry struggled to shine and James managed to bring the Cavs back from a three-game deficit, which had never been done before in the NBA, to win it all. He was also named Most Valuable Player.
The last game was decided in the final seconds and gave Cleveland a championship, something it hasn’t had since 1964. Nike didn’t miss the opportunity and immediately ran an ad after the game.Under Armour did see an upgrade to a Buy rating from Buckingham Research this morning. The stock doesn’t seem to be fazed by Golden State’s loss to Cleveland and is up over 2 percent to $38.31. Last week, the brand was the target of social media ridicule for its Chef Curry “dad” shoes, but the rumor is that the shoes are doing well in their category.