- The Dow Jones Industrial Average increased by 240 points, or 0.6%, at 09:35 ET (13:35 GMT), the S&P 500 increased by 14 points or 0.3%, and the NASDAQ Composite increased by 22 points or 0.1%.
- 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. For the first time since a five-quarter run that ended in 2021, the Nasdaq recorded its third consecutive positive quarter, with the main tech firms setting the standard for excitement for all things related to artificial intelligence.
Payrolls and Fed remarks are highlighted
- This week’s main event is Friday’s publication of the most important nonfarm payroll data for June. The figure is expected to provide further light on the labor market, whose tenacity has also been a major source of disagreement for the Fed when it comes to rate cuts.
- The U.S. central bank’s decision to begin lowering interest rates is still quite unclear, as seen by the PCE price index, one of the Fed’s primary inflation indicators, which revealed later last week that inflation was dropping down very gradually.
- It is anticipated that a report on Tuesday, which comes before the nonfarm payrolls data, would reveal that job opportunities fell in May once again.
- The minutes of the Fed’s June meeting will be made public on Wednesday, and they will be examined to determine the central bank’s assessment of the state of the economy and the variables affecting the outlook for monetary policy.
- Several Fed officials are also scheduled to speak this week, most notably Chairman Jerome Powell, who will be present on Tuesday at the European Central Bank’s annual event in Portugal.
Spirit Aerosystems deal approved by Boeing
- Individual stock prices increased. Spirit Aerosystems (NYSE: SPR), up 3.5%, and Boeing (NYSE: BA) agreed to be acquired by the aircraft manufacturer for $4.7 billion, after a protracted quest complicated by Spirit’s contracts with Boeing’s primary competitor, Airbus (EPA: AIR).
- The stock of Nvidia (NASDAQ: NVDA) dropped 1.2% as it steadied after rising about 150% so far this year. Morgan Stanley, calling the semiconductor “the most compelling narrative in the AI semis space,” increased its price objective for the semiconductor while continuing to see growth potential.
- GameStop (NYSE: GME) stock dropped 6.9% when Keith Gill, the stock influencer known as “Roaring Kitty,” was accused of securities fraud in a class-action lawsuit involving the video game store. Meanwhile, Chewy (NYSE: CHWY) stock increased 7.6% after Gill revealed a 6.6% position in the pet goods retailer.
A surge in the Caixin manufacturing PMI has lifted crude.
- Crude prices rose slightly on Monday, supported by a private poll that showed China’s industrial activity expanded faster than anticipated in June, raising hopes that this significant economy was beginning to stabilize.
- WTI (U.S. futures for crude oil) was up 0.8% at $82.19 per barrel at 09:35 ET, while Brent was up 0.9% at $85.74 per barrel.
- In June, the Caixin Manufacturing PMI increased to 51.8 from 51.7 the previous month and 51.5, which was below forecasts.
- The number is at odds with official PMI data that was made public on Sunday, which indicated that China’s manufacturing sector contracted in June for a second straight month.
- Since China is the world’s biggest importer of oil, a rebound in its industrial sector suggests that demand for the commodity would rise in the second half of the year.
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