S&P 500 and Nasdaq hit new records with Powell on board

US stocks rose on Monday, kicking off a key week that could provide important signals about near-term interest rate trends.

The S&P 500 (^GSPC) rose 0.1% and the tech-heavy Nasdaq Composite (^IXIC) climbed 0.3%, with each index managing to hit new records. The Dow Jones Industrial Average (^DJI) erased earlier session gains, falling 0.1%.

The S&P and Nasdaq added to records set Friday in the wake of the jobs report, signaling continued labor market cooling. That prompted a flood of bets on a September rate cut by the Federal Reserve. About three in four traders expect a cut in September, according to the CME FedWatch tool.

Events this week could add to that growing rate-cutting momentum. Fed Chair Jerome Powell is scheduled to appear before Congress on Tuesday and Wednesday for semiannual testimony. Then comes the final Consumer Price Index printout, set to be released Thursday. Economists expect headline inflation to have risen 3.1% over the past year, matching the lows where the CPI started the year.

In corporates, Boeing (BA) pleaded guilty to criminal conspiracy charges in connection with two deadly 737 Max crashes. Shares rose less than 1%.

Meanwhile, Tesla (TSLA) shares erased early session losses and turned positive as the EV giant notched its ninth straight day of gains. The stock closed 0.5% higher.

Live11 updates

  • S&P 500 and Nasdaq rise to new records

    The S&P 500 and Nasdaq Composite both edged higher on Monday to close at new record highs as investors await key inflation data this week. Earnings season is back in full swing with quarterly results reported by JPMorgan Chase & Co. (JPM) and Wells Fargo (WFC) 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 flatline.

    Chip stocks outperformed Monday, with Nvidia (NVDA), AMD (AMD) and Intel (INTC) all closing higher.

    The consumer price index is scheduled for publication on Thursday, before the stock market opens.

    “We expect the June CPI report to be a soft one, giving the Fed more confidence in disinflation,” analysts at BofA Global Research wrote Monday.

  • Trending tickers on Monday

    Boeing (BA)

    The planemaker plans to plead guilty to fraud charges related to the deadly 737 Max crashes in 2018 and 2019. Shares of Boeing rose as much as 2% on Monday before paring gains.

    Nikola (NKLA)

    Nikola rose to the No. 2 spot on Yahoo Finance’s trending ticker list on Monday as shares surged more than 20%. The stock has gained more than 35% in the past five sessions.

    Shares rose on Tuesday after the electric commercial vehicle startup announced it had sold 72 Class 8 hydrogen fuel cell Nikola trucks, more than the upper end of its sales forecast of 60 units.

    Supermicrocomputer (SMCI)

    AI-related plays such as Super Micro Computer gained on Monday as the chip space outperformed. SMCI rose 7% during the session. The stock has gained more than 215% this year.

  • Chip stocks outperform, boost Nasdaq

    Chip stocks outperformed Monday, as the iShares Semiconductor ETF (SOXX) rose more than 1.5%.

    Among the biggest gainers were Nvidia (NVDA) which rose 2%, AMD (AMD) rose 3% and Intel (INTC) rose about 5%.

    Chipmakers also kept the Nasdaq Composite (^IXIC) in positive territory Monday afternoon, while the Dow Jones Industrial Average (^DJI) fell slightly and the S&P 500 (^GSPC) was flat.

  • Bitcoin hovers around $56,000 level

    Bitcoin (BTC-USD) was hovering around $56,000 per token on Monday afternoon after the cryptocurrency saw a decline over the past week amid selling concerns as defunct crypto exchange Mt. Gox began repaying its creditors.

    The fact that the German government sold a large amount of bitcoins at once may also have put downward pressure on bitcoin.

    The digital token fell as much as 5% over the past 24 hours to just below $55,000, or about $19,000 below its March record high.

  • Paramount shares drop after company agrees to merge with Skydance

    Yahoo Finance’s Alexandra Canal reports:

    Shares of Paramount (PARA) fell Monday after the entertainment giant announced it plans to merge with Skydance Media, ending the Redstone family’s control over the company.

    The deal, announced Sunday night, follows years of speculation surrounding Paramount, which is controlled by Shari Redstone through her family’s holding company, National Amusements (NAI).

    Shares of Paramount were down about 3% around noon the next day as investors digested the terms of the new deal, which would see Skydance first acquire 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 and retains 77% of the voting stock, worth approximately $1 billion.

    Read more here.

  • Dow loses steam, S&P 500 falters

    Stocks lost momentum midway through the trading session on Monday, with the S&P 500 (^GSPC) dipping just below the flatline.

    The Dow Jones Industrial Average (^DJI) fell more than 200 points, down nearly 0.2%.

    Semiconductor stocks held the Nasdaq Composite (^IXIC) to mild gains. Shares of Nvidia (NVDA), Broadcom (AVGO) and Intel (INTC) all rose more than 2% on Monday.

  • Nvidia rises 2% as analysts raise price target for stock

    Shares of Nvidia (NVDA) rose more than 2% on Monday after several Wall Street analysts raised their price targets for 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 a record high of $135.58 each on June 18.

  • Tesla stock tries to extend monster 8-day rally

    Shares of Tesla (TSLA) moved into the green after opening in the red as the EV giant attempted to extend an eight-day rally that saw shares rise about 37%.

    The stock’s winning streak has erased its year-to-date losses in a remarkably swift turnaround, with shares up more than 75% from 52-week lows in April.

    Tesla stock was just above the flat line at 10:45 a.m. ET.

  • Dow rises 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 supported by shares of Intel (INTC) and Boeing (BA), which rose more than 5% and 2%, respectively.

    Boeing shares rose after the planemaker pleaded guilty to participating in a criminal conspiracy in connection with two deadly 737 Max crashes.

    Intel shares also rose after Melius Research said the chipmaker will benefit from enthusiasm for AI in the second half of this year, as investors focus on technology companies that have underperformed the semiconductor sector.

    Intel shares have fallen more than 30% so far this year.

  • Stocks rise slightly ahead of key inflation numbers this week, S&P 500 and Nasdaq aim to build on records

    Stocks rose modestly Monday as the S&P 500 (^GSPC) rose 0.1%. The tech-heavy Nasdaq Composite (^IXIC) rose just above the flatline after every index posted record closes on Friday.

    The Dow Jones Industrial Average (^DJI) rose about 0.2%.

    Stock prices were hoping to break records set after Friday’s jobs report, which showed the labor market was cooling further.

    More important data will arrive this week, including the release of the consumer price index, expected on Thursday.

    “We expect the June CPI report to be a soft one, giving the Fed more confidence in disinflation,” analysts at BofA Global Research wrote Monday.

    Markets will also be paying attention to clues about the central bank’s next move when Fed Chairman Jerome Powell delivers semi-annual testimony before Congress on Tuesday and Wednesday.

  • Watching Disney

    Keep an eye on shares of Disney (DIS) this morning after JPMorgan significantly raised its estimates.

    Analyst David Karnovsky raised his full-fiscal year operating income estimates for Disney to reflect year-over-year growth of 20.5%. He expects earnings per share to rise 25%.

    “Our higher estimate follows the very strong box office performance of Inside Out 2, which grossed over $1 billion globally in the quarter. The film is a positive indicator of the studio’s creative direction — especially with several animated sequels in the pipeline — even as we believe investors still want to see execution on original IP,” Karnovsky said.

    Worth noting: Disney shares are down 16% over the past three months.

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