Stock prices close unchanged ahead of US inflation report
S&P 500 Index ($SPX) (spy) The Dow Jones Industrial Average closed down -0.02% on Monday ($DOWI) (diamond) closed -0.21% lower, compared to the Nasdaq 100 Index ($IUXX) (QQQ) ended at +0.21%.
U.S. stocks were mixed and subdued on Monday. Rising inflation expectations weighed on stock prices on Monday after the New York Fed's one-year inflation expectations for April rose +26 basis points to 3.26%, a five-month high from 3.00% in March. It became. Also, the hawkish Fed Vice Chairman Jefferson said on Monday that “given that inflation is slowing in terms of being brought down to target, it is appropriate to keep policy rates in a subdued region.” Comments also weighed on the stock price.
Stocks received some support on Monday from lower bond yields and positive corporate news. Incyte Corp rose more than +8% after announcing its board of directors approved his $2 billion share buyback authorization. Also, Walgreens Boots Alliance closed more than +5% after Bloomberg reported that the company was in contact with a potential buyer for the Boots drugstore chain in the UK. Additionally, Intel is negotiating a deal that would see Apollo Global Management provide more than $11 billion to help the company build a chip factory in Ireland. It closed at over +2%.
Markets will focus on US inflation reports this week. On Tuesday, April core PPI is expected to decline to +2.3% y/y from +2.4% y/y in March. On Wednesday, April core CPI is expected to slow to +3.6% y/y from +3.8% y/y in March.
Overall, strong first quarter results are supportive of stock prices. First-quarter earnings are expected to increase +6.5% year over year, well above the pre-earnings forecast of +3.8%. About 81% of S&P 500 companies beat first-quarter profit estimates, according to data compiled by Bloomberg Intelligence.
The market is discounting the possibility of a -25 basis point rate cut, 5% at the FOMC's June 11-12 meeting and 25% at its next meeting on July 30-31.
Overseas stock markets fell and calmed down on Monday. The Euro Stoxx 50 closed -0.12% lower. China's Shanghai Composite Stock Price Index closed down -0.21%. Japan's Nikkei stock index fell to a one-week low, closing down -0.13%.
Interest level
June 10-year T-note (ZNM24) Monday closed at +4 ticks. The 10-year T-note yield fell -1.1 basis points to 4.485%. T-note prices on Monday were supported by solid performance in European government bonds. Expectations that this week's US PPI and CPI reports will ease some price pressure also supported T-note prices. Hawkish comments from Fed Vice Chairman Jefferson on Monday, saying the Fed should hold interest rates unchanged until there is more evidence that inflation returns to the Fed's 2% target, are a negative for T-notes. It became a thing.
European government bond yields were mixed on Monday. The yield on German 10-year federal bonds fell 0.7 basis points to 2.510%. The UK 10-year bond yield rose 0.9 basis points to 4.174%.
US securities company
Insight Corporation (Incy) closed more than +8% higher among S&P 500 index gainers after announcing its board of directors approved a $2 billion share buyback authorization.
Walgreens Boots Alliance (W.B.A.) Closed more than +5% after Bloomberg reported the company was in contact with a potential buyer for Britain's Boots drugstore chain.
apple (AAPL) closed more than +2% after the company was reported to be close to a deal to use OpenAI's technology in Apple's upcoming iOS 18 mobile operating system.
Intel (INTC) more than +2% after the Wall Street Journal reported that the company was in talks for a deal that would see Apollo Global Management provide more than $11 billion to help build a chip factory. At the close of trading, it led the 30 Dow Jones Industrial Average in percentage gains. In Ireland.
Macau-related gaming stocks rose on Monday after China added eight mainland cities to Hong Kong and Macau for “individual travel” from May 27. As a result, Wynn Resorts International (win), Las Vegas Sands (LVS), MGM Resorts International (MGM) closed by more than +1%.
square space (SQSP) closed more than +13% after Permira entered into a definitive agreement to take it private in a deal valued at about $6.9 billion. Stockholders will receive $44 in cash per share.
Biolife Solutions (BLFS) Benchmark Company LC closed over +6% after changing the stock from Hold to Buy with a $25 price target.
United Airlines Holdings (UAL) and American Airlines Group (AAL) HSBC closed over +3% higher after initiating coverage of stocks recommended for buy.
Home Depot (HD) The Dow Jones Industrial Average led the Dow Jones Industrial Average by more than 1% on Tuesday's expectation that first-quarter comparable sales would decline by -2.19%.
Metaplatform (meta) closed more than -1% lower after the UAE government's research arm released Falcon 2 11B, a more powerful AI model that challenges MetaPlatform's open source AI model.
MKS Instruments (MKSI) closed down more than -9% after announcing plans to issue $1 billion in convertible notes due in 2030.
Insulet (pod) Since the company announced its earnings last Thursday, analysts have lowered their price targets by an average of -2.5%, so the stock closed more than -2% lower due to the drop in price targets.
Number of reservations held (BKNG), -1% after the European Union said it had given the company six months to comply with a number of measures under the EU's digital markets law to prevent competition abuses. The transaction was completed in excess of that amount.
Applied Materials (Amat) The stock closed more than -1% lower after Jefferies downgraded the stock from buy to hold.
Earnings report (2024/5/14)
Arcutis Biotherapeutics Inc (ARQT), Atea Pharmaceuticals Inc (AVIR), Bakkt Holdings Inc (BKKT), BioAtla Inc (BCAB), Boot Barn Holdings Inc (BOOT), DHT Holdings Inc (DHT), Dragonfly Energy Holdings Corp (DFLI), Eos Energy Enterprises Inc (EOSE), Fennec Pharmaceuticals Inc (FRX), Home Depot Inc/The (HD), Infinera Corp (INFN), International Game Technology (IGT), Jack in the Box Inc (JACK), Liquidia Corp (LQDA ) ), NEXTracker Inc (NXT), NU Holdings Ltd/Cayman Islands (NU), OptimizeRx Corp (OPRX), Origin Materials Inc (ORGN), Precigen Inc (PGEN), Prestige Consumer Healthcare Inc (PBH), Sagimet Biosciences Inc ( ), scPharmaceuticals Inc (SCPH), Seadrill Ltd (SDRL), SFL Corp Ltd (SFL), SKYX Platforms Corp (SKYX), SoundThinking Inc (SSTI), Terran Orbital Corp (LLAP), Turnstone Biologics Corp (TSBX), VOXX International Ltd. (VOXX).
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On the date of publication, rich asplund I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P 500 Index ($SPX) (spy) The Dow Jones Industrial Average closed down -0.02% on Monday ($DOWI) (diamond) closed -0.21% lower, compared to the Nasdaq 100 Index ($IUXX) (QQQ) ended at +0.21%. U.S. stocks were mixed and subdued on Monday. Rising inflation expectations weighed on stock prices on Monday after the New York Fed's one-year inflation expectations for April rose +26 basis points to 3.26%, a five-month high from 3.00% in March. It became. Also, the hawkish Fed Vice Chairman Jefferson said on Monday that “given that inflation is slowing in terms of being brought down to target, it is appropriate to keep policy rates in a subdued region.” Comments also weighed on the stock price.
Stocks received some support on Monday from lower bond yields and positive corporate news. Incyte Corp rose more than +8% after announcing its board of directors approved his $2 billion share buyback authorization. Also, Walgreens Boots Alliance closed more than +5% after Bloomberg reported that the company was in contact with a potential buyer for the Boots drugstore chain in the UK. Additionally, Intel is negotiating a deal that would see Apollo Global Management provide more than $11 billion to help the company build a chip factory in Ireland. It closed at over +2%.Markets will focus on US inflation reports this week. On Tuesday, April core PPI is expected to decline to +2.3% y/y from +2.4% y/y in March. On Wednesday, April core CPI is expected to slow to +3.6% y/y from +3.8% y/y in March.Overall, strong first quarter results are supportive of stock prices. First-quarter earnings are expected to increase +6.5% year over year, well above the pre-earnings forecast of +3.8%. About 81% of S&P 500 companies beat first-quarter profit estimates, according to data compiled by Bloomberg Intelligence. The market is discounting the possibility of a -25 basis point rate cut, 5% at the FOMC's June 11-12 meeting and 25% at its next meeting on July 30-31.Overseas stock markets fell and calmed down on Monday. The Euro Stoxx 50 closed -0.12% lower. China's Shanghai Composite Stock Price Index closed down -0.21%. Japan's Nikkei stock index fell to a one-week low, closing down -0.13%.
Interest levelJune 10-year T-note (ZNM24) Monday closed at +4 ticks. The 10-year T-note yield fell -1.1 basis points to 4.485%. T-note prices on Monday were supported by solid performance in European government bonds. Expectations that this week's US PPI and CPI reports will ease some price pressure also supported T-note prices. Hawkish comments from Fed Vice Chairman Jefferson on Monday, saying the Fed should hold interest rates unchanged until there is more evidence that inflation returns to the Fed's 2% target, are a negative for T-notes. It became a thing.European government bond yields were mixed on Monday. The yield on German 10-year federal bonds fell 0.7 basis points to 2.510%. The UK 10-year bond yield rose 0.9 basis points to 4.174%.US securities companyInsight Corporation (Incy) closed more than +8% higher among S&P 500 index gainers after announcing its board of directors approved a $2 billion share buyback authorization.Walgreens Boots Alliance (W.B.A.) Closed more than +5% after Bloomberg reported the company was in contact with a potential buyer for Britain's Boots drugstore chain. apple (AAPL) closed more than +2% after the company was reported to be close to a deal to use OpenAI's technology in Apple's upcoming iOS 18 mobile operating system.
Intel (INTC) more than +2% after the Wall Street Journal reported that the company was in talks for a deal that would see Apollo Global Management provide more than $11 billion to help build a chip factory. At the close of trading, it led the 30 Dow Jones Industrial Average in percentage gains. In Ireland.Macau-related gaming stocks rose on Monday after China added eight mainland cities to Hong Kong and Macau for “individual travel” from May 27. As a result, Wynn Resorts International (win), Las Vegas Sands (LVS), MGM Resorts International (MGM) closed by more than +1%.square space (SQSP) closed more than +13% after Permira entered into a definitive agreement to take it private in a deal valued at about $6.9 billion. Stockholders will receive $44 in cash per share. Biolife Solutions (BLFS) Benchmark Company LC closed over +6% after changing the stock from Hold to Buy with a $25 price target. United Airlines Holdings (UAL) and American Airlines Group (AAL) HSBC closed over +3% higher after initiating coverage of stocks recommended for buy.
Home Depot (HD) The Dow Jones Industrial Average led the Dow Jones Industrial Average by more than 1% on Tuesday's expectation that first-quarter comparable sales would decline by -2.19%. Metaplatform (meta) closed more than -1% lower after the UAE government's research arm released Falcon 2 11B, a more powerful AI model that challenges MetaPlatform's open source AI model. MKS Instruments (MKSI) closed down more than -9% after announcing plans to issue $1 billion in convertible notes due in 2030.Insulet (pod) Since the company announced its earnings last Thursday, analysts have lowered their price targets by an average of -2.5%, so the stock closed more than -2% lower due to the drop in price targets.Number of reservations held (BKNG), -1% after the European Union said it had given the company six months to comply with a number of measures under the EU's digital markets law to prevent competition abuses. The transaction was completed in excess of that amount.
Applied Materials (Amat) The stock closed more than -1% lower after Jefferies downgraded the stock from buy to hold.Earnings report (2024/5/14)Arcutis Biotherapeutics Inc (ARQT), Atea Pharmaceuticals Inc (AVIR), Bakkt Holdings Inc (BKKT), BioAtla Inc (BCAB), Boot Barn Holdings Inc (BOOT), DHT Holdings Inc (DHT), Dragonfly Energy Holdings Corp (DFLI), Eos Energy Enterprises Inc (EOSE), Fennec Pharmaceuticals Inc (FRX), Home Depot Inc/The (HD), Infinera Corp (INFN), International Game Technology (IGT), Jack in the Box Inc (JACK), Liquidia Corp (LQDA ) ), NEXTracker Inc (NXT), NU Holdings Ltd/Cayman Islands (NU), OptimizeRx Corp (OPRX), Origin Materials Inc (ORGN), Precigen Inc (PGEN), Prestige Consumer Healthcare Inc (PBH), Sagimet Biosciences Inc ( ), scPharmaceuticals Inc (SCPH), Seadrill Ltd (SDRL), SFL Corp Ltd (SFL), SKYX Platforms Corp (SKYX), SoundThinking Inc (SSTI), Terran Orbital Corp (LLAP), Turnstone Biologics Corp (TSBX), VOXX International Ltd. (VOXX).
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On the date of publication, rich asplund I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/stocks-close-little-changed-on-caution-ahead-of-us-inflation-reports Stock prices close unchanged ahead of US inflation report
