Ahead of a significant monthly employment report that is expected later this week, equities began the second half of the year on a high note as the S&P 500 increased on Monday, supported by the technology sector.
The Dow Jones Industrial Average increased 69 points, or 0.2%, at 13:52 ET (17:52 GMT), the S&P 500 increased by 0.20%, and the NASDAQ Composite increased by 0.6%. The Independence Day holiday on Thursday has shortened the new week, but the major indexes have begun it well and have added to their gains from the previous quarter.
The Dow Jones Industrial Average fell 1.7% during the second quarter, while the S&P 500 and NASDAQ Composite gained 3.9% and 8.3%, respectively.
Payrolls and Fed remarks are highlighted
In the lead-up to Friday’s release of the nonfarm payrolls data for June, a plethora of labor market updates are scheduled, including the job openings report that is expected on Tuesday and more hints on monetary policy.
More information on the labor market, whose tenacity has also been a major source of disagreement for the Fed in reducing rates, should be revealed in the reading of the monthly jobs data.
The Federal Reserve will release the minutes of its June meeting ahead of the nonfarm payrolls statistics. Many people are eager to learn more about the Fed’s monetary policy stance after the Fed signaled that it now only anticipates one reduction this year, down from a previous forecast of three cuts.
Chairman Jerome Powell of the Federal Reserve is scheduled to speak at the European Central Bank’s annual meeting in Portugal on Tuesday.
According to statistics, the level of manufacturing activity in the United States unexpectedly dropped into the contraction zone in June, with a score of 48.5, below predictions of 49.2. A value that is less than 50 indicates contraction.
Spirit Aerosystems deal approved by Boeing
Following a protracted chase complicated by Spirit Aerosystems’ contracts with Boeing’s primary competitor, Airbus (EPA: AIR), Spirit Aerosystems (NYSE: SPR), up 3.6%, agreed to be acquired by Boeing (NYSE: BA) for $4.7 billion. As a result, the shares of Boeing increased by 2%.
After Morgan Stanley raised its price target for the semiconductor and said that it still expects potential, Nvidia’s (NASDAQ: NVDA) stock was flat, reversing some of its intraday losses. The company refers to this story as “the most compelling narrative in the AI semis space.”
GameStop’s (NYSE: GME) stock dropped 5.4% after Keith Gill, a.k.a. “Roaring Kitty,” was accused of securities fraud in a class-action lawsuit involving the video game retailer, while Chewy’s (NYSE: CHWY) stock fell almost 5% after Gill revealed a 6.6% stake in the pet products retailer.
Nio (NYSE: NIO) rallies as June deliveries almost quadruple, while Tesla (NASDAQ: TSLA) soars ahead of the Q2 delivery report.
Tesla’s stock increased by 6% on Tuesday, barely in front of the anticipated second-quarter delivery figures. The EV manufacturer “saw a mini rebound’ in 2Q which should help Tesla come close to the Street’s 435k units estimate,” Wedbush said in a recent report. The Q2 deliveries are likely to reflect the lower demand for electric vehicles witnessed in the first half of the year.
In other EV news, NIO increased 6% upon revealing that EV deliveries last month reached 21,209, almost twice as much as they did a year earlier.
