US close: Stocks manage small gains on quiet Monday

11th Jun 2024 02:19

(Sharecast News) - Stocks on Wall Street showed modest gains on Monday, reflecting cautious optimism despite heightened political uncertainty following French President Emmanuel Macron's announcement of snap parliamentary elections.

The unexpected move, seen by many as a high-stakes gamble, has potential implications for political stability on both sides of the Atlantic.

At the close, the Dow Jones Industrial Average was up 0.18% at 38,868.04.

The S&P 500 also saw a slight increase of 0.26% to end the day at 5,360.79, while the Nasdaq Composite outperformed the other indices with a gain of 0.35%, finishing at 17,192.53.

In currency markets, the dollar was last up 0.03% against sterling, reaching 78.57p.

Against the euro, it edged up by 0.01% to 92.9 euro cents, while it also strengthened against the Japanese yen, climbing 0.1% to JPY 157.20.

"Stocks find themselves hit by several worries today," said IG chief market analyst Chris Beauchamp.

"The stellar payrolls report on Friday has dealt a further blow to hopes of a US rate cut, and snap French elections have given traders something else to worry about.

"Plus, with US CPI and the Fed on the calendar for Wednesday there is little incentive for traders to plunge back in."

Beauchamp added that given the developments of recent days, it was "perhaps surprising" that stock markets had not suffered heavier losses.

"But a booming US economy is ultimately good for stocks, and the shock of French elections may turn out to be a buying opportunity if Macron's gamble pays off.

"Investors should be prepared for the Fed to err on the side of hawkishness this week, but not excessively so, and the bar to further rate hikes is still very high."

Market watchers look ahead on quiet day for data

Investors remained on edge as they awaited the Federal Reserve's upcoming policy announcement, scheduled for two days from now.

The market's focus was on whether the Fed will adjust its previous forecast of three interest rate cuts for the rest of 2024, a decision that could significantly impact economic sentiment and market dynamics.

Additionally, market participants were keenly anticipating the May consumer price index (CPI) report, expected to be released shortly.

Projections indicated a modest month-on-month increase of just 0.1%, marking the smallest rise so far this year.

The CPI data is crucial for understanding inflation trends and will likely influence the Fed's policy decisions.

Apple falls despite AI announcement, Southwest surges

In equities, Apple dropped 1.9% following the announcement of its new AI platform, 'Apple Intelligence', at the Worldwide Developers Conference.

GameStop experienced a sharp decline, with its stock falling 12%.

That followed a dramatic 39% drop last Friday, marking the retailer's worst day since February 2021.

The recent slump occurred despite Keith Gill, known as Roaring Kitty, reaffirming his positive stance on GameStop during a livestream on Friday.

Conversely, Southwest Airlines saw a significant boost, with shares rising 7% after Elliott Investment Management announced it had acquired a substantial stake in the airline, valued at $1.9bn, positioning Elliott as one of Southwest's largest shareholders.

Nvidia also posted gains, with shares up 0.8% as they began trading after a 10-for-one stock split that took effect after trading closed on Friday.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Home Depot Inc. (HD) $332.46 1.69%

Walmart Inc. (WMT) $66.96 1.64%

Walt Disney Co. (DIS) $102.74 1.18%

Microsoft Corp. (MSFT) $427.87 0.95%

Unitedhealth Group Inc. (UNH) $495.00 0.88%

Walgreens Boots Alliance, Inc. (WBA) $15.94 0.63%

Merck & Co. Inc. (MRK) $131.49 0.63%

Dow Chemical Co. (DOW) $56.05 0.57%

Intel Corp. (INTC) $30.91 0.55%

Chevron Corp. (CVX) $156.74 0.42%

Dow Jones - Fallers

Apple Inc. (AAPL) $193.12 -1.91%

Visa Inc. (V) $275.04 -1.30%

Verizon Communications Inc. (VZ) $40.41 -1.29%

McDonald's Corp. (MCD) $253.81 -0.94%

Nike Inc. (NKE) $96.00 -0.57%

Coca-Cola Co. (KO) $63.59 -0.50%

Goldman Sachs Group Inc. (GS) $453.55 -0.30%

3M Co. (MMM) $100.66 -0.20%

JP Morgan Chase & Co. (JPM) $199.61 -0.17%

American Express Co. (AXP) $232.44 -0.10%

S&P 500 - Risers

Dxc Technology Company (DXC) $18.45 11.48%

Southwest Airlines Co. (LUV) $29.70 7.03%

Lam Research Corp. (LRCX) $1,003.07 4.19%

Mohawk Inds Inc. (MHK) $118.08 4.10%

Ralph Lauren Corp (RL) $188.32 3.60%

Seagate Technology Plc (STX) $99.52 3.55%

KLA-Tencor Corp. (KLAC) $794.38 3.30%

Skyworks Solutions Inc. (SWKS) $93.52 2.98%

Micron Technology Inc. (MU) $134.82 2.96%

Applied Materials Inc. (AMAT) $228.16 2.90%

S&P 500 - Fallers

Huntington Bancshares Inc. (HBAN) $12.58 -6.12%

Advanced Micro Devices Inc. (AMD) $160.34 -4.49%

Nektar Therapeutics (NKTR) $1.21 -4.37%

CenturyLink Inc. (LUMN) $1.22 -3.94%

Illumina Inc. (ILMN) $109.82 -3.41%

Monster Beverage Corp (MNST) $51.00 -3.21%

VF Corp. (VFC) $13.16 -3.09%

PepsiCo Inc (PEP) $165.90 -3.01%

FMC Corp. (FMC) $54.99 -2.95%

Foot Locker Inc. (FL) $24.95 -2.84%

Nasdaq 100 - Risers

Lam Research Corp. (LRCX) $1,003.07 4.19%

Seagate Technology Plc (STX) $99.52 3.55%

KLA-Tencor Corp. (KLAC) $794.38 3.30%

Skyworks Solutions Inc. (SWKS) $93.52 2.98%

Micron Technology Inc. (MU) $134.82 2.96%

Applied Materials Inc. (AMAT) $228.16 2.90%

Western Digital Corp. (WDC) $77.10 2.83%

Biomarin Pharmaceutical Inc. (BMRN) $82.94 2.79%

Broadcom Inc. (AVGO) $1,440.47 2.41%

Idexx Laboratories Inc. (IDXX) $508.26 2.16%

Nasdaq 100 - Fallers

Illumina Inc. (ILMN) $109.82 -3.41%

Monster Beverage Corp (MNST) $51.00 -3.21%

Take-Two Interactive Software Inc. (TTWO) $160.54 -2.57%

Kraft Heinz Co. (KHC) $33.55 -2.44%

DENTSPLY Sirona Inc. (XRAY) $27.05 -2.31%

Qurate Retail Inc. (QRTEA) $0.71 -2.30%

Automatic Data Processing Inc. (ADP) $246.87 -2.16%

Tesla Inc (TSLA) $173.79 -2.08%

Liberty Global plc Series A (LBTYA) $17.74 -1.93%

Apple Inc. (AAPL) $193.12 -1.91%