S&P 500, Nasdaq hit new highs with Powell on deck

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US stocks gained on Monday to kick off a bullish week that could provide key signals for the near-term path of interest rates.

The S&P 500 (^GSPC) rose 0.1% and the Nasdaq Composite (^IXIC) rose 0.3%, with each index hitting new records. The Dow Jones Industrial Average (^DJI) erased earlier session gains to fall 0.1%.

The S&P and Nasdaq added Friday’s record gains in the wake of the 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.

This week’s events could add to that growing momentum for a rate cut. 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 corporate, Boeing (BA) pleaded guilty to one count of criminal conspiracy in connection with two fatal 737 Max crashes. Shares rose less than 1%.

Meanwhile, shares of Tesla ( TSLA ) erased early session losses to turn positive as the EV giant posted its ninth straight gain. The share closed with 0.5%.

LIVE11 updates

  • S&P 500, Nasdaq advance to new records

    The S&P 500 and Nasdaq Composite edged higher to close at new records on Monday as investors await key inflation this week and earnings season kicks off again with JPMorgan Chase & Co. ( JPM ) and Wells Fargo ( WFC ) reporting quarterly results on Friday.

    The Nasdaq Composite (^IXIC) rose almost 0.3% after hitting an all-time high last Friday. The S&P 500 (^GSPC) also rose 0.1% while the Dow Jones Industrial Average (^DJI) fell slightly below the flat line.

    Chip stocks fared better during Monday’s session, with Nvidia ( NVDA ), AMD ( AMD ) and Intel ( INTC ) all closing higher.

    The Consumer Price Index print is expected to be released on Thursday before the market opens.

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

  • Trending indicators on Monday

    Boeing (BA)

    The planemaker plans to plead guilty to a fraud charge related to the fatal 737 Max crashes from 2018 and 2019. Boeing shares rose as much as 2% on Monday before taking gains.

    Nicholas (NKLA)

    Nikola took second place on Yahoo Finance’s trend list on Monday as the stock gained more than 20%. The stock is up more than 35% over the past five sessions.

    Last Tuesday’s shares rose after the commercial electric vehicle startup announced it wholesaled 72 Nikola Class 8 hydrogen fuel cell trucks, above its high-end truck sales guidance of 60 units.

    Super Micro Computer (SMCI)

    Artificial intelligence-related shows like Super Micro Computer gained on Monday as the chip space outperformed. SMCI rose 7% during the session. The stock is up more than 215% year-to-date.

  • Chip stocks outperform, boosting Nasdaq

    Chip stocks fared better during Monday’s session as the iShares Semiconductor ETF ( SOXX ) gained more than 1.5%.

    Among the biggest gainers, Nvidia ( NVDA ) was up 2%, AMD ( AMD ) was up 3%, and Intel ( INTC ) was up roughly 5%.

    Chipmakers also helped the Nasdaq Composite (^IXIC) stay in positive territory Monday afternoon, while the Dow Jones Industrial Average (^DJI) fell slightly and the S&P 500 (^GSPC) hugged the flat line.

  • 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% as analysts raise price target on shares

    Shares of Nvidia ( NVDA ) rose more than 2% on Monday after some Wall Street analysts raised their price targets for 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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