US stocks nudged up early Monday ahead of a consequential week that could provide key signals for the near-term path of interest rates.
The S&P 500 (^GSPC) rose 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) was up 0.1% after each index notched its latest record on Friday. The Dow Jones Industrial Average (^DJI) jumped about 0.5%.
The S&P and Nasdaq are looking to build on records secured in the wake of Friday’s 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.
Several 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 other market-moving events, a left-wing coalition in France garnered the most votes in the country’s election, stunning a far-right that was hoping to secure a parliamentary majority. The benchmark French index (^FHCI) rose slightly.
In corporates, Boeing (BA) pleaded guilty to a criminal conspiracy charge in relation to two fatal 737 Max crashes. Shares were up nearly 1% in early trading.
Meanwhile Tesla stock (TSLA) fell more than 1% on Monday as shares were on track to snap an eight-day winning streak.
Live3 updates
Mon, July 8, 2024 at 9:56 AM EDT
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.
Mon, July 8, 2024 at 9:32 AM EDT
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.
Mon, July 8, 2024 at 6:04 AM EDT
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.
