News
S&P 500, Nasdaq hit new records with Powell at the helm
U.S. stocks gained on Monday to start a consequent week that can provide important signals for the short-term path of interest rates.
The S&P 500 (^GSPC) rose 0.1% and the tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, with each index managing to post new records. The Dow Jones Industrial Average (^DJI) erased the previous session’s gains and fell 0.1%.
The S&P and Nasdaq added to Friday’s record highs secured in the report on the sequence of employmentwhich signaled a continued cooling in the labor market. This led to an influx of bets on a September rate cut from the Federal Reserve. About 3 in 4 traders expect a cut in September, according to the CME FedWatch tool.
Events this week could add to the growing momentum for rate cuts. Fed Chairman Jerome Powell is scheduled to appear before Congress for semiannual testimony on Tuesday and Wednesday. Then comes the latest print of the Consumer Price Index, due out on Thursday. Economists expect overall inflation to have risen 3.1% over the past year, which would match the lows at which the CPI began the year.
In business, Boeing (BA) pleaded guilty to a criminal conspiracy charge in connection with two fatal 737 Max crashes. Shares rose less than 1%.
Meanwhile, Tesla shares (TSLA) erased early session losses and turned positive as the electric vehicle giant hit its ninth consecutive day of gains. Shares closed up 0.5%.
LIVE COVERAGE IS OVER11 updates
- Mon, 8 Jul 2024 22:04 GMT+2
S&P 500, Nasdaq surge to new records
The S&P 500 and Nasdaq Composite managed to edge higher and close at fresh records on Monday as investors await a key inflation report this week and earnings season kicks off again with JPMorgan Chase & Co.JPM) and Wells Fargo (WFC) reporting quarterly results on Friday.
The Nasdaq Composite (^IXIC) rose nearly 0.3% after hitting an all-time high last Friday. The S&P 500 (^GSPC) also rose 0.1%, while the Dow Jones Industrial Average (^DJI) fell just below the flat line.
Chip stocks outperformed during Monday’s session, with Nvidia (NVDA), OMG (AMD) and Intel (INTC) all closing higher.
The Consumer Price Index will be released on Thursday, before the market opens.
“We expect June CPI to be a soft report, boosting the Fed’s confidence in disinflation,” analysts at BofA Global Research wrote Monday.
Trending tickers on Monday
Boeing (BA)
The aircraft maker plans to plead guilty to a fraud charge related to fatal 737 Max crashes in 2018 and 2019. Boeing shares rose as much as 2% on Monday before paring gains.
Nicholas (NKLA)
Nikola ranked No. 2 on Yahoo Finance’s trending ticker list on Monday, with shares gaining more than 20%. The stock is up more than 35% in the past five sessions.
Shares soared on Tuesday after electric commercial vehicle startup announced he sold wholesale 72 Nikola Class 8 Hydrogen Fuel Cell Trucksabove the maximum truck sales forecast limit of 60 units.
Super Micro Computer (SMCI)
AI-related stocks like Super Micro Computer gained on Monday, with the chip space outperforming. SMCI rose 7% during the session. The stock is up more than 215% year to date.
Chip stocks outperform, boost Nasdaq
Chip stocks outperformed during Monday’s session, with the iShares Semiconductor ETF (SOXX) gained more than 1.5%.
Among the biggest gainers, Nvidia (NVDA) rose 2%, AMD (AMD) rose 3%, and Intel (INTC) increased by about 5%.
Chipmakers also helped the Nasdaq Composite (^IXIC) remain in positive territory on Monday afternoon, while the Dow Jones Industrial Average (^DJI) fell slightly, and the S&P 500 (^GSPC) embraced the flat line.
Bitcoin hovers near $56,000 level
Bitcoin (BTC-USD) hovered near $56,000 per token on Monday afternoon after the cryptocurrency dipped slightly last week amid concerns of a selloff as defunct cryptocurrency exchange Mt. Gox started paying his creditors.
The German government selling a large amount of bitcoin all at once may also have put downward pressure on bitcoin.
The digital token has fallen as much as 5% in the past 24 hours to just under $55,000, or about $19,000 below its March record high.
Paramount shares fall after company agrees to merge with Skydance
Yahoo Finance’s Alexandra Channel reports:
Paramount shares (FOR) fell on Monday after the entertainment giant announced plans to merge with Skydance Media in a deal that would mark the end of the Redstone family’s control of the company.
The agreement, announced on Sunday night, comes after years of speculation about agreements around Paramount, which is controlled by Shari Redstone through his family’s holding company, National Amusements (NAI).
Paramount shares fell about 3% in midday trading the following day as investors digested the terms of the new deal, which includes Skydance first acquiring NAI (and Redstone’s stake) for $2.4 billion in cash before completing a full merger.
National Amusements owns approximately 10% of Paramount’s equity value and holds 77% of the voting shares valued at approximately $1 billion.
To read more here.
Dow loses steam, S&P 500 fluctuates
Stocks lost steam midway through Monday’s session as the S&P 500 (^GSPC) dipping just below the flat line.
The Dow Jones Industrial Average (^DJI) erased more than 200 points and fell almost 0.2%.
Semiconductor stocks were holding up the Nasdaq Composite (^IXIC) clinging to slight gains. Nvidia shares (NVDA), Broadcom (AVGO) and Intel (INTC) rose more than 2% on Monday.
Nvidia rises 2% as analysts raise price target on shares
Nvidia (NVDA) rose more than 2% on Monday as some Wall Street analysts raised their price target on the AI chip heavyweight.
UBS raised its price target on the stock to $150 from $120, while Wolfe Research raised its forecast to $150 from $125.
Year to date, Nvidia is up nearly 160%. Shares of the Santa Clara, California-based company closed at an all-time high of $135.58 apiece on June 18.
Tesla shares attempt to extend monster 8-day rally
Tesla shares (TSLA) fell into green territory after opening in the red as the electric vehicle giant tried to extend an eight-day deadline race in which shares soared by around 37%.
The stocks’ winning streak has erased the year’s losses so far in a remarkably swift turnaround. Shares have gained more than 75% since 52-week lows hit in April.
Tesla shares were just above the flat line as of 10:45 a.m. ET.
Dow gains 200 points as Intel, Boeing shares surge
The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.6%, on Monday. The blue-chip index was boosted by shares of Intel (INTC) and Boeing (BA), rising more than 5% and 2%, respectively.
Boeing shares rose after the planemaker pleaded guilty to one count of criminal conspiracy in connection with two fatal 737 Max crashes.
Intel shares also surged after Melius Research noted that the chipmaker is set to benefit from AI enthusiasm in the second half of this year as investors flock to technology names that have underperformed the semiconductor sector.
Intel shares are down more than 30% year to date.
Stocks rise ahead of key inflation data this week, S&P 500, Nasdaq aim to build records
Stocks rose on Monday, with the S&P 500 (^GSPC) rose 0.1%. The Nasdaq Composite (^IXIC) rose slightly above the flat line after each index posted record closes on Friday.
The Dow Jones Industrial Average (^DJI) rose by about 0.2%.
The actions aim to take advantage of the records obtained in Friday’s jobs report trailwhich signaled a continued cooling in the labor market.
More important data will be released this week, with the Consumer Price Index due out on Thursday.
“We expect June CPI to be a soft report, boosting the Fed’s confidence in disinflation,” analysts at BofA Global Research wrote Monday.
Markets will also be watching closely for any clues about the central bank’s next move when Fed Chairman Jerome Powell speaks Tuesday and Wednesday during semiannual testimony before Congress.
Disney watching
Keep an eye on Disney (DIS) stocks this morning after some big estimates hikes from JPMorgan.
Analyst David Karnovsky raised his full-fiscal-year operating income estimates at Disney to reflect 20.5% year-over-year growth. He sees earnings per share rising 25%.
“Our higher estimate follows a very strong box office performance for Inside Out 2, which grossed over $1 billion globally in the quarter. The film is a positive indicator for the studio’s creative direction — especially with a slate of animated sequels in the pipeline — even as we believe investors will still want to see the original IP executed,” Karnovsky said.
Worth noting: Disney shares are down 16% in the past three months.
