US stocks gained on Monday to start a consequential week that could provide key signals for the near-term path of interest rates.
The S&P 500 (^GSPC) rose 0.1% and the tech-heavy Nasdaq Composite (^IXIC) climbed 0.3%, with each index managing to notch fresh records. The Dow Jones Industrial Average (^DJI) erased earlier session gains to slip 0.1%.
The S&P and Nasdaq added to Friday’s records secured in the wake of the jobs report, which signaled continued cooling in the labor market. That prompted 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 that growing rate-cut momentum. Fed Chair Jerome Powell is set to appear in Congress for semiannual testimony on Tuesday and Wednesday. Then comes the latest Consumer Price Index print, set for release on Thursday. Economists expect headline inflation rose 3.1% over the last year, which would match the lows where the CPI started the year.
In corporates, Boeing (BA) pleaded guilty to a criminal conspiracy charge in relation to two fatal 737 Max crashes. Shares climbed less than 1%.
Meanwhile Tesla stock (TSLA) erased early session losses to turn positive as the EV giant notched its ninth straight day of gains. The stock closed up 0.5%.
Live11 updates
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S&P 500, Nasdaq advance to fresh records
The S&P 500 and Nasdaq Composite managed to inch higher to close at fresh records on Monday as investors await a key inflation print 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 almost 0.3% after notching an all-time high last Friday. The S&P 500 (^GSPC) also climbed 0.1% while the Dow Jones Industrial Average (^DJI) fell just below the flatline.
Chip stocks outperformed during Monday’s session, with Nvidia (NVDA), AMD (AMD), and Intel (INTC) all closing higher.
The Consumer Price Index print is set for release on Thursday prior to the market open.
“We expect June CPI to be a soft-report, increasing the Fed’s confidence on disinflation,” wrote BofA Global Research analysts on Monday.
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Trending tickers on Monday
Boeing (BA)
The aircraft maker plans to plead guilty to a fraud charge tied to fatal 737 Max crashes from 2018 and 2019. Shares of Boeing rose as much as 2% Monday before paring gains.
Nikola (NKLA)
Nikola occupied the No. 2 spot on Yahoo Finance’s trending ticker list on Monday as shares gained more than 20%. The stock is up more than 35% over the past five sessions.
Last Tuesday shares soared after the electric commercial vehicle startup announced it wholesaled 72 Class 8 Nikola hydrogen fuel cell trucks, above the high end of truck sales guidance of 60 units.
Super Micro Computer (SMCI)
AI-related plays like Super Micro Computer gained on Monday as the chip space outperformed. SMCI rose 7% during the session. The stock is up more than 215% year to-date.
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Chip stocks outperform, lift Nasdaq
Chip stocks outperformed during Monday’s session as the iShares semiconductor ETF (SOXX) gained more than 1.5%.
Among the biggest gainers, Nvidia (NVDA) rose 2%, AMD (AMD) soared 3%, and Intel (INTC) increased roughly 5%.
The chipmakers also helped the Nasdaq Composite (^IXIC) stay in positive territory Monday afternoon, while the Dow Jones Industrial Average (^DJI) fell slightly, and the S&P 500 (^GSPC) hugged the flatline.
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Bitcoin hovers near $56,000 level
Bitcoin (BTC-USD) hovered near $56,000 per token on Monday afternoon after the cryptocurrency took a leg lower over the past week amid concerns of selling as defunct crypto exchange Mt. Gox began repaying its creditors.
The German government selling a large amount of bitcoin all at once may also have put downward pressure on bitcoin.
The digital token slid as much as 5% over the past 24 hours to just under $55,000, or about $19,000 below its March record high.
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Paramount stock drops after company agrees to Skydance merger
Yahoo Finance’s Alexandra Canal reports:
Paramount stock (PARA) moved lower on Monday after the entertainment giant announced it plans to merge with Skydance Media in a deal that would mark an end to the Redstone family’s control of the company.
The agreement, announced late Sunday, comes after years of deal speculation surrounding Paramount, which is controlled by Shari Redstone through her family’s holding company, National Amusements (NAI).
Paramount shares dropped 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 capital value and maintains 77% of voting shares valued at around $1 billion.
Read more here.
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Dow loses steam, S&P 500 wavers
Stocks lost steam by mid-session on Monday with the S&P 500 (^GSPC) dipping just below the flatline.
The Dow Jones Industrial Average (^DJI) erased more than 200 points to slip nearly 0.2%.
Semiconductor stocks were keeping the Nasdaq Composite (^IXIC) clinging to slight gains. Shares of Nvidia (NVDA), Broadcom (AVGO), and Intel (INTC) were all up more than 2% on Monday.
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Nvidia pops 2% as analysts increase price target on stock
Nvidia (NVDA) shares popped more than 2% on Monday as some Wall Street analysts increased their price target on the AI chip heavyweight.
UBS raised its price target for 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, Calif.-based company closed at an all-time record of $135.58 each on June 18.
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Tesla stock tries to extend monster 8-day rally
Tesla’s stock (TSLA) flipped into green territory after opening in the red as the EV giant tried to extend an eight-day rally in which shares ballooned about 37%.
The stock’s winning streak has erased year-to-date losses in a remarkably quick turnaround. Shares have gained more than 75% since 52-week lows hit in April.
Tesla stock was sitting just above the flatline as of 10:45 a.m. ET.
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Dow gains 200 points as shares of Intel, Boeing rise
The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.6%, on Monday. The blue-chip index was buoyed by shares of Intel (INTC) and Boeing (BA), up more than 5% and 2%, respectively.
Boeing stock rose after the plane maker pleaded guilty to a criminal conspiracy charge in relation to two fatal 737 Max crashes.
Intel shares also spiked after Melius Research highlighted the chipmaker is set to benefit from AI enthusiasm in the second half of this year as investors rotate into tech names that have underperformed the semiconductor sector.
Intel shares are down more than 30% year to date.
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Stocks edge higher ahead of key inflation data this week, S&P 500 and Nasdaq aim to build on records
Stocks edged higher on Monday as the S&P 500 (^GSPC) rose 0.1%. The tech-heavy Nasdaq Composite (^IXIC) rose just above the flatline after each index posted record closes on Friday.
The Dow Jones Industrial Average (^DJI) nudged up about 0.2%.
Stocks aimed to build on records secured in the wake of Friday’s jobs report, which signaled continued cooling in the labor market.
More key data will trickle in this week, with the Consumer Price Index print set for release on Thursday.
“We expect June CPI to be a soft-report, increasing the Fed’s confidence on disinflation,” wrote BofA Global Research analysts on Monday.
The markets will also pay attention to any clues regarding the central bank’s next move when Fed Chair Jerome Powell speaks on Tuesday and Wednesday during a semiannual testimony in front of Congress.
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Disney watching
Keep an eye on Disney (DIS) shares this morning after some big estimate bumps out of JPMorgan.
Analyst David Karnovsky lifted his full fiscal year operating income estimates on Disney to reflect 20.5% year-over-year growth. He sees earnings per share rising 25%.
“Our higher estimate follows 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 creative direction at the studio — especially with a number of animated sequels in the pipeline — even as we think investors still want to see execution on original IP,” said Karnovsky.
Worth noting: Disney shares are down 16% in the last three months.
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