An Hour Ago
S&P 500, Nasdaq close higher Monday
The S&P 500 and Nasdaq Composite ended Monday’s trading session in the green.
The tech-heavy Nasdaq rose 0.65% to close at a new record. The S&P 500 added 0.09%. Meanwhile, the Dow Jones Industrial Average fell 196.82 points, or 0.49%.
— Hakyung Kim
2 Hours Ago
BlackRock Investment Institute turns bullish on emerging market stocks
The gap between the stock markets of developed countries and emerging ones has gotten too wide to ignore, according to the BlackRock Investment Institute.
“The difference in equity risk premia — a gauge of the excess yield investors receive for the risk of holding stocks over cash — between EM and DM equities has grown to its widest level in nearly four years, reflecting cheaper relative EM valuations,” a note from institute head Jean Boivin said Monday.
The note highlighted Mexico, India and Saudi Arabia as emerging markets that are particularly attractive.
For investors looking to stay in more proven economies, the note is positive on developed market debt.
“We go overweight EM stocks and DM government bonds for the first time in four and five years, respectively,” the note said.
— Jesse Pound
2 Hours Ago
Commodities still a risk to market, Raymond James says
Commodities are still the biggest threat to the U.S. stock market, according to Raymond James managing director Tavis McCourt.
“Commodity prices remain the biggest ‘risk to the bull’ in the U.S. this year,” McCourt told clients in a Sunday note.
He noted that disinflation will be tough if commodity prices continue to rally. McCourt also said further price increases can push global portfolio managers to shift back to emerging markets and commodity-focused indexes after pouring money into the U.S. market.
— Alex Harring
3 Hours Ago
56 stocks in the S&P 500 hit new 52-week highs
The S&P 500 was up roughly 0.2% early afternoon on Monday.
During the session, 56 stocks in the broad market index hit new 52-week highs. These included:
On the other hand, Lululemon and Molson Coors traded at new 52-week lows.
— Lisa Kailai Han, Christopher Hayes
3 Hours Ago
JPMorgan drags on bank ETF
JPMorgan‘s drop on the back of comments from CEO Jamie Dimon weighed on the SPDR S&P Bank ETF (KBE).
The finance giant’s stock tumbled nearly 3% following Dimon’s statements on retirement and buybacks during investor day. That made it the worst performer in the bank fund, which slipped around 0.3% in afternoon trading.
See Chart…
JPM vs. the KBE, 1-day
Corebridge and MGIC were the next-biggest losers in the exchange-traded fund, with each sliding more than 2%. On the other hand, Independent Bank helped pare losses with a rally of more than 8%.
— Alex Harring
4 Hours Ago
Jamie Dimon indicates his retirement is coming
JPMorgan Chase CEO and Chairman Jamie Dimon gestures as he speaks during the U.S. Senate Banking, Housing and Urban Affairs Committee oversight hearing on Wall Street firms, on Capitol Hill in Washington, D.C.
Evelyn Hockstein | Reuters
JPMorgan Chase CEO Jamie Dimon indicated Monday that the day is getting closer when he still step down from running the nation’s largest bank.
“The timetable isn’t five years anymore,” the 68-year-old chief executive said during the bank’s annual investor day. The comments, reported by The Wall Street Journal, are a bit of a switch from the way he generally brushes off questions about his future.
There are multiple potential successors, with the next CEO expected to come from within. JPMorgan shares were off 2.5% in afternoon trading.
— Jeff Cox
4 Hours Ago
Target shares fall after big-box retailer cuts prices on 5,000 items
Target shares slid 2.2% after the big-box retailer said it will cut prices on roughly 5,000 frequently bought items, in an effort to lure the cost-conscious consumer.
“We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more,” Rick Gomez, Target’s executive vice president and chief food, essentials and beauty officer, said in a statement.
The move comes ahead of Target’s latest quarterly report, due out Wednesday. The retail stock is higher by more than 9% this year, but has tumbled more than 11% this quarter.
— Sarah Min
4 Hours Ago
Stocks making the biggest moves midday
Check out the companies making headlines in midday trading:
- Hims & Hers Health — Shares surged more than 30% after the telehealth company introduced access to compounded GLP-1 injections, expanding on the weight loss program it launched in December.
- Wix.com — The web development company jumped more than 25% after it posted better-than-expected first-quarter results. It also raised its full-year guidance on free cash flow.
- Norwegian Cruise Line — The cruise line operator jumped more than 8% after Norwegian Cruise Line lifted its full-year earnings guidance. It also reported better-than-expected first-quarter results.
— Sarah Min
5 Hours Ago
Tech leads sector gains
CFOTO | Future Publishing | Getty Images
Information technology rose 1.3% Monday, outperforming the S&P 500 and other sectors.
Nvidia shares climbed more than 2%, powering the sector higher. Other chipmakers such as Applied Materials, KLA Corporation and Micron Technology also advanced more than 3%.
Industrials, communication services and materials were the other positive sectors midday Monday.
— Hakyung Kim
5 Hours Ago
Precious and base metals prices from gold to copper surge to records
Maybe the economy is OK or maybe inflation is not.
But whatever the reason, a host of precious metals and base metals climbed to fresh records on Monday, pushing June gold futures to an all-time high of $2,454.20 an ounce, July copper futures on the Chicago Mercantile Exchange to a new peak of $5.199 a pound and London Metal Exchange copper to a record $11,104.50 per metric tonne (2204.62 pounds).
Copper is often referred to as Doctor Copper due to its status as a leading indicator of the health of the economy due to its use in so many industrial products.
Silver reached its highest price in more than 11 years on Monday, touching $32.75 an ounce, a level last reached in December 2012.
See Chart…
Gold futures over the past year.
— Scott Schnipper, Gina Francolla
6 Hours Ago
Novogratz sees bitcoin take out $73,000 high before year-end
Michael Novogratz, founder and CEO of Galaxy Digital, speaks during the Piper Sandler Global Exchange and FinTech Conference in New York City.
Brendan Mcdermid | Reuters
Galaxy Digital CEO Michael Novogratz said Monday that bitcoin would hit a new high before the year-end and even reach the $100,000 threshold in the near future.
“I do think we’ll take out the 73,000 high before the end of this year and probably finish $100,000. Somewhere in that zone,” Novogratz said at the SALT iConnections conference in New York City.
Bitcoin hit an all-time high above $73,000 in March, driven in part by the successful introduction of spot bitcoin exchange-traded funds in the U.S. The flagship cryptocurrency traded at $66,889 on Monday.
Novogratz said the core investors in bitcoin are long-term holders who do not sell during bouts of volatility.
— Yun Li
6 Hours Ago
Aerospace and defense ETF hits all-time high
6 Hours Ago
Hims & Hers shares surge nearly 30%
The New York Stock Exchange with a Hims & Hers Health banner is pictured in the Manhattan borough of New York City.
Carlo Allegri | Reuters
Telehealth company Hims & Hers rallied 29.6% Monday after the company introduced access to compounded GLP-1 weight loss injections. The GLP-1 medications are expanding upon the company’s weight loss program launched in December.
During Hims & Hers’ fourth-quarter earnings report prior to the GLP-1 addition, the company guided its weight loss program to net more than $100 million in revenue by the end of 2025.
— Hakyung Kim, Ashley Capoot, Brandon Gomez
7 Hours Ago
Interest rate cuts are ‘still a way off,’ Bank of America says
Despite encouraging inflation data in April, investors still clinging to hopes for a robust series of interest rate cuts in 2024 could be mistaken, according to Bank of America.
“With markets now pricing close to 50bp of cuts this year, they are likely to get disappointed,” BofA global economist Claudio Irigoyen wrote Monday.
“1Q inflation was too high, and a single print should not deliver much comfort, especially if it annualizes to a rate much higher than consistent with the Fed’s target,” Irigoyen added. “Furthermore, the economy is still solid, including services spending, the labor market remains tight, supply tailwinds could fade, and elections are approaching.”
— Brian Evans
7 Hours Ago
Fed’s Jefferson says inflation has fallen ‘nowhere near as quickly’ as he’d like
Federal Reserve Vice Chair Philip Jefferson on Monday emphasized that inflation is not cooling quickly enough to warrant interest rate reductions.
While he said the pace of price increases has “eased dramatically” from its mid-2022 peak, Jefferson added that he supported the recent Federal Open Market Committee decision to hold rates steady.
“I believe that our policy rate is in restrictive territory as we continue to see the labor market come into better balance, and inflation decline although nowhere near as quickly as I would have liked,” Jefferson said in prepared remarks for a speech in New York.
Of particular note, Jefferson said Fed economists have calculated that core inflation, as measured by the central bank’s preferred personal consumption expenditures price index, rose at a 4.1% annual pace in the first four months of 2024, above the 2% target.
— Jeff Cox
8 Hours Ago
Natural gas reaches highest level since late January
A chimney from the Linden Cogeneration Plant is seen in Linden, New Jersey.
Kena Betancur | View Press | Corbis News | Getty Images
Natural gas hit a level not seen since early this year.
The commodity hit a high of 2.702 on Monday, on pace for its fourth straight positive session. That high marked its most expensive going back to Jan. 29, when natural gas touched 2.76.
Several natural gas stocks including Crescent Energy and Woodside Energy advanced in Monday morning trading.
— Alex Harring, Gina Francolla
8 Hours Ago
Stocks open flat Monday
Traders work on the floor of the New York Stock Exchange during morning trading on May 17, 2024.
Angela Weiss | AFP | Getty Images
9 Hours Ago
Investor sentiment has swung ‘like a pendulum’ from fall pullback, says RBC’s Calvasina
RBC Capital Markets is wary of the “sudden” rebound in investor sentiment after the major averages reached new highs last week.
Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, pointed out that although yields have been sticky, the S&P 500 has diverged from its pullback in the fall, likely driven by renewed optimism that the market could get Fed rate cuts in the second half of this year, due to Fed comments, softer labor data and evidence of consumer pushback on high prices.
“We have been struck by the speed and distance with which Fed expectations have swung like yet another pendulum over the past few months,” Calvasina said in a note Monday.
“The certainty with which some equity investors spoke to us this past week about why they think the Fed will cut a few times this year was the polar opposite of comments we heard in February and March where investors expressed certainty that the Fed would not be able to cut this year because the economy was too strong and inflation too sticky,” she added.
— Tanaya Macheel
9 Hours Ago
Stocks making the biggest moves before the bell
11 Hours Ago
Johnson Controls rises on report of Elliott Management stake
Rafael Henrique | Lightrocket | Getty Images
Shares of Johnson Controls rose 5% after Bloomberg News reported Elliott Management has built a more than $1 billion stake in the security and safety company. Year to date, the stock has climbed 19%.
See Chart…
JCI year to date
Read More: Stock market news for May 20, 2024