STOCKS RISE: Here's what you need to know

Stocks closed up on Tuesday after the Senate healthcare bill passed a huge hurdle.

The Dow and the S&P 500 finished up, while the Nasdaq was little changed.

First up, the scoreboard:

  • Dow: 21,615.05, +101.88, (+0.47%)
  • S&P 500: 2,477.99, +7.22, (+0.30%)
  • Nasdaq: 6,412.00, +1.27, (+0.02%)
  • US 10-year yield: 2.325%, +0.072
  • WTI crude: $US47.89, +1.55, +3.34%

1. The Senate voted to open debate on the Republican healthcare overhaul. A procedural vote to begin debate on the House’s healthcare bill passed Tuesday by a narrow count of 50-50, with Vice President Mike Pence serving as the tiebreaker vote.

2. McDonald’s beats on second-quarter earnings after slashing prices on soda and coffee. McDonald’s shares rose by as much as 3% to a record intraday high. They gained 25% this year through the market close on Monday.

3. A legendary fund manager is piling into a market he says Wall Street is ignoring. There’s a fortune to be made buying closed-end funds (CEFs). That was the message delivered in a recent interview by famed credit trader Boaz Weinstein, whose $US1.7 billion firm Saba Capital is best known for its winning bet against the JPMorgan trader known as the “London Whale.”

4. It’s about to get a lot easier to bet against Snap. That’s because the company’s post-initial-public-offering stock lockup is set to expire Saturday, allowing insider shareholders to sell the stock for the first time. While borrowing fees of 50% to 60% have made shorting Snap prohibitively expensive to most investors, that cost will shrink to about 5%, according to S3 Partners.

5. Michael Kors is buying Jimmy Choo for $US1.2 billion. Jimmy Choo put itself up for sale in April after its majority owner, JAB, signalled its intention to focus on consumer goods.

6. A $US13 billion hedge fund is sounding the alarm on one of the biggest trends in investing: quants and passive investing. Highfields Capital Management flagged concerns this week about computer-driven trading in its second-quarter letter to investors, a copy of which was reviewed by Business Insider.

7. Snap shares slid before $US14 for the first time on Tuesday. After a brief pop following the initial public offering, Snap shares have been on a fairly steady downward trend, and are now 19% below their IPO of $US17..


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