Stocks wobble as S&P 500, Nasdaq try to build on records

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US stocks wobbled on Monday ahead of a consequential week that could provide key signals for the near-term path of interest rates.

The S&P 500 (^GSPC) hugged the flat line, while the Nasdaq Composite (^IXIC) rose 0.1% after each index hit its latest record on Friday. The Dow Jones Industrial Average (^DJI) erased earlier session gains to fall 0.2%.

The S&P and Nasdaq are looking to build on the data provided in the wake of Friday’s jobs report, which signaled continued cooling in the labor market. That sparked an influx of bets on a September rate cut by the Federal Reserve. About 3 in 4 traders expect a cut in September, according to the CME FedWatch tool.

Several events this week could add to this growing rate-cutting momentum. Fed Chairman Jerome Powell will appear before Congress for a six-month testimony on Tuesday and Wednesday. Next comes the latest print of the Consumer Price Index, set for release on Thursday. Economists expect headline inflation to rise 3.1% over the past year, which would match the lows where the CPI started the year.

In other market-moving events, a left-wing coalition in France won the most votes in the country’s election, stunning a far-right that was hoping to secure a parliamentary majority. The French core index (^FHCI) rose slightly.

In corporate, Boeing (BA) pleaded guilty to one count of criminal conspiracy in connection with two fatal 737 Max crashes. Shares rose nearly 1% during the session.

Meanwhile, shares of Tesla ( TSLA ) erased early session losses to turn positive as shares of the EV giant were on track to extend an eight-day winning streak.

LIVE8 updates

  • Bitcoin hovers near the $56,000 level

    Bitcoin (BTC-USD) held close to $56,000 per token on Monday afternoon after the cryptocurrency slipped over the past week amid concerns about a sell-off as defunct crypto exchange Mt. Gox began paying off its creditors.

    The German government selling a large amount of Bitcoin at once may have also put downward pressure on bitcoin.

    The digital token slipped as much as 5% over the past 24 hours to just under $55,000, or about $19,000 below its March high.

  • Paramount shares fall after company accepts Skydance merger

    Yahoo Finance’s Alexandra Canal reports:

    Shares of Paramount ( PARA ) fell Monday after the entertainment giant announced it plans to merge with Skydance Media in a deal that would mark the end of the Redstone family’s control of the company.

    The deal, announced late Sunday, follows years of deal speculation surrounding Paramount, which is controlled by Shari Redstone through her family’s holding company, National Amusements (NAI).

    Paramount shares fell about 3% in midday trading the next day as investors digested the terms of the new deal, which includes Skydance’s first purchase of NAI (and Redstone shares) for $2.4 billion in cash before to complete a full union.

    National Amusements owns approximately 10% of Paramount’s equity value and holds 77% of the voting stock valued at approximately $1 billion.

    Read more here.

  • Dow loses steam, S&P 500 falters

    Stocks lost steam mid-session on Monday with the S&P 500 (^GSPC) dipping just below the flat line.

    The Dow Jones Industrial Average (^DJI) erased more than 200 points to fall nearly 0.2%.

    Semiconductor stocks were holding the Nasdaq Composite (^IXIC) up after slight gains. Shares of Nvidia (NVDA), Broadcom (AVGO) and Intel (INTC) all rose more than 2% on Monday.

  • Nvidia gains 2% for analysts raising their price target on the stock

    Shares of Nidia (NVDA) rose more than 2% on Monday after several Wall Street analysts raised their price target on the AI ​​chip heavyweight.

    UBS raised its price target on the stock to $150 from $120 while Wolfe Research raised its forecast to $150 from $125.

    Year-to-date, Nvidia is up nearly 160%. Shares of the Santa Clara, Calif.-based company closed at an all-time high of $135.58 each on June 18.

  • Tesla shares struggle to extend 8-day monster

    Shares of Tesla ( TSLA ) returned to green territory after opening in the red, as the EV giant tried to extend an eight-day rally that saw the stock rise about 37%.

    The stock’s winning streak has wiped out year-to-date losses in a remarkably swift turnaround. Shares have gained more than 75% since hitting a 52-week low in April.

    Shares of Tesla were trading just above the flat line as of 10:45 a.m. ET.

  • Dow gains 200 points as shares of Intel and Boeing rise

    The Dow Jones Industrial Average (^DJI) rose more than 200 points, or 0.6%, on Monday. The blue-chip index was boosted by shares of Intel ( INTC ) and Boeing ( BA ), up more than 5% and 2%, respectively.

    Boeing shares rose after the planemaker pleaded guilty to one count of criminal conspiracy in connection with two fatal crashes of the 737 Max.

    Intel shares also rose after Melius Research pointed out that the chipmaker will benefit from artificial intelligence enthusiasm in the second half of this year as investors shift to technology names that have underperformed in the semiconductor sector.

    Intel shares are down more than 30% year-to-date.

  • Stocks rise ahead of key inflation data this week, S&P 500 and Nasdaq aim to build data

    Stocks rose Monday as the S&P 500 (^GSPC) rose 0.1%. The tech-heavy Nasdaq Composite (^IXIC) rose slightly above the flat line as every index posted a record close on Friday.

    The Dow Jones Industrial Average (^DJI) rose about 0.2%.

    Stocks aimed to build on data secured in the wake of Friday’s jobs report, which signaled continued cooling in the labor market.

    More key data will flow this week, with the Consumer Price Index print set for release on Thursday.

    “We expect the June CPI to be a soft report, increasing the Fed’s confidence on disinflation,” BofA Global Research analysts wrote on Monday.

    Markets will also pay attention to any clues about the central bank’s next move when Fed Chairman Jerome Powell speaks on Tuesday and Wednesday during his semiannual testimony before Congress.

  • Disney watching

    Keep an eye on Disney ( DIS ) stock this morning after some big ratings from JPMorgan.

    Analyst David Karnovsky raised his full-year operating income estimates at Disney to reflect the 20.5% year-over-year increase. He sees earnings per share growing by 25%.

    “Our higher rating follows the very strong box office performance of Inside Out 2, which grossed over $1 billion globally in the quarter. The film is a positive sign for the creative direction at the studio — especially with a number of animated sequels in the pipeline — although we think investors still want to see execution on original IP,” Karnovsky said.

    Worth noting: Disney shares are down 16% in the past three months.

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