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The S&P 500 and Nasdaq reached record closing highs on Monday, despite investor caution ahead of this week’s consumer prices report and a Federal Reserve policy announcement.
Nvidia (NVDA.O) shares ended up 0.7%, a day after a 10-for-one stock split, raising speculation it might be included in the blue-chip Dow.
The Consumer Price Index report for May is due Wednesday along with the conclusion of the Fed’s two-day policy meeting. The central bank is expected to hold interest rates steady, and investors will look for clues on future rate cuts.
“This is an important week for the market in terms of comments and messaging from the Federal Reserve,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
“In addition to that, you’ll see Wednesday morning the CPI report. Anything related to the economy and anything related to inflation is viewed by the market through the lens of the Federal Reserve”.
Traders have reduced their expectations for rate cuts in September after Friday’s stronger-than-expected jobs data, with the odds of a reduction now at 50%. “I feel like it’s going to be pretty muted as people try to hedge themselves for what they might see on Wednesday,” said Alex McGrath, private wealth advisor at NorthEnd Private Wealth.
Apple (AAPL.O) shares dipped 1.9% on the first day of the iPhone maker’s annual developer conference. Investors are eager for updates on how it is integrating artificial intelligence into its offerings.
Among the day’s gainers, Southwest Airlines (LUV.N) jumped 7% after activist investor Elliott Investment Management disclosed a $1.9 billion position in the company.
Diamond Offshore Drilling (DO.N) shares climbed 10.9% after Noble (NE.N) announced a $1.59 billion acquisition deal. Noble shares rose 6.1%.
Advancing issues outnumbered declining ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored advancers. The S&P 500 posted 19 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 56 new highs and 177 new lows. Volume on U.S. exchanges was 10.39 billion shares, compared with the 12.80 billion average for the last 20 trading days.
Stocks have emerged from their morning rut, though trading remains choppy as the week ends. Nonfarm payrolls indicated a robust job market, pushing the 10-year Treasury yield to 4.4% and reinforcing the Fed’s “higher for longer” interest rate policy.
The Dow Jones Industrial Average (DJI) is cautiously higher, having pared triple-digit gains from earlier in the session. The S&P 500 (SPX) and Nasdaq Composite (IXIC) are fluctuating between negative and positive territory, but all three indexes are on track for healthy weekly gains.
In Other News:
GameStop Stock: All eyes are on GameStop stock once more.
Lyft: Lyft is in it for the long haul.
Walgreens Boots Alliance Inc (NASDAQ: Seeing increased options activity today, with 18,000 calls exchanged, volume 1.2 times the average intraday amount and nearly four times the number of puts traded. WBA is flat at $15.89 despite a price-target cut to $17 from $22 at Leerink.
Eli Lilly And Co (NYSE: Near the top of the NYSE today, trading at $848.87, up 1.4%. Earlier hit a record high of $856.81 thanks to a price-target hike to $957 from $925 at Jefferies. LLY is up 45.8% in 2024.
Toyota’s Market Impact
Toyota’s market value dropped significantly after Japan’s Transport Ministry found it had falsified and mishandled data for safety certification tests. This scandal resulted in a $15.6 billion decrease in market cap, with shares falling by over 5.4% last week. However, Toyota’s Nasdaq-listed shares were up about 1% as of Monday afternoon.
An internal investigation revealed that Toyota had not performed safety tests as required in five cases, involving models like the Crown, Corolla, and Yaris Cross. In one case, concerning the Lexus RX, the company submitted falsified data to meet safety standards.
Through an internal investigation prompted by a regulator mandate, Toyota found it had not performed safety tests as certification required in five cases related to vehicles including the Crown, Corolla, and the Yaris Cross. In one case involving the Lexus RX, the company had submitted falsified data to meet safety standards and submitted it for certification.
US Markets
| Name | Last | Chg | Chg % |
|---|---|---|---|
| DJIA | 38,868.04 | 69.05 | 0.18% |
| COMP | 17,192.53 | 59.40 | 0.35% |
| SPX | 5,360.79 | 13.80 | 0.26% |
| GDOW | 4,712.12 | 3.14 | 0.07% |
Commodities
| Name | Last | Chg | Chg % |
|---|---|---|---|
| GC00 (Gold) | $2,328.00 | 1.00 | 0.04% |
| CL.1 (Crude Oil WTI) | $77.95 | 0.21 | 0.27% |
Europe Markets
| Name | Last | Chg | Chg % |
|---|---|---|---|
| FTSE 100 | 8,228.48 | -16.89 | -0.20% |
| DAX | 18,494.89 | -62.38 | -0.34% |
| CAC 40 | 7,893.98 | -107.85 | -1.35% |
| FTSE MIB | 34,542.01 | -118.37 | -0.34% |
| IBEX 35 | 11,357.20 | -47.70 | -0.42% |
| SXXP | 522.16 | -1.39 | -0.27% |
Asia Markets
| Name | Last | Chg | Chg % |
|---|---|---|---|
| XX: ADOW | 4,025.27 | 0.65 | 0.02% |
| JP: NIK | 39,322.52 | 284.36 | 0.73% |
| HK: HSI | 18,366.95 | -109.85 | -0.59% |
| CN: SHCOMP | 3,051.28 | 2.48 | 0.08% |
| IN: 1 | 76,490.08 | -203.28 | -0.27% |
| SG: STI | 3,322.08 | -8.69 | -0.26% |
| AU: XJO | 7,774.42 | -85.8 | -1.09% |
| KOSPI Composite Index | 2,714.29 | 13.12 | 0.49% |
Currencies
| Name | Last | Chg | Chg % |
|---|---|---|---|
| Euro | $1.0763 | -0.0004 | -0.04% |
| Japanese Yen | ¥157.19 | 0.15 | 0.09% |
| British Pound | $1.2727 | -0.0005 | -0.04% |
| Australian Dollar | $0.6601 | -0.0010 | -0.15% |
| U.S. Dollar Index (DXY) | 105.16 | 0.01 | 0.01% |
| WSJ Dollar Index | 99.90 | 0.07 | 0.07% |
Resources: Reuters, MSN Money and Fortune