Stock Indexes Wrap: Manufacturing, Construction Data Weighs on Industrials as Tech Advances
1 hr 43 min ago
The Dow
Shares of Merck (MRK) rose 2.4% after it and partner Moderna announced encouraging results from a trial of two of their drugs for the treatment of melanoma.
Tech stocks climbed as Treasury yields retreated. Amazon (AMZN) added 1.1% while Salesforce (CRM) rose 0.9%.
Chevron (CVX) slumped 3% as oil prices tumbled after leading OPEC+ members announced plans to gradually reduce production cuts starting in October.
Heavy industry stalwarts Dow (DOW) and Caterpillar (CAT) shed 2.7% and 2.2%, respectively, after a key measure of U.S. manufacturing business indicated the sector contracted for a second consecutive month in May.
The S&P 500
Paramount (PARA) jumped 7.5% amid reports it had agreed to a revised acquisition offer from SkyDance Media.
Nvidia (NVDA) climbed 4.9% after CEO Jensen Huang unveiled the company’s next-generation system, the Rubin platform, and said it would be available in 2026.
Moderna (MRNA) added 3.7% on the aforementioned trial results.
Travel stocks rose amid a report from the International Air Transport Association estimating airline profits would exceed $30 billion this year thanks to robust travel demand. Cruise operator Carnival (CCL) gained 6.2%, while Southwest Airlines (LUV) advanced 3.2% and Expedia (EXPE) rose 1.1%.
Tractor Supply Co. (TSCO), weighed on by weak U.S. industrial data, shed 6.2%.
Builders FirstSource (BLDR) and General Holdings (GNRC) slid 5.3% and 4% after data showed construction spending fell for a second straight month in April.
Halliburton (HAL) lost 5.3% and Occidental Petroleum (OXY) fell 2.9% as oil prices slumped.
The Nasdaq 100
Autodesk (ADSK) rose 4.6% after the company said an internal accounting probe had not resulted in any material changes to prior financial results.
Advanced Micro Devices (AMD) fell 2% despite, like Nvidia, unveiling its next-generation AI chips.
CrowdStrike (CRWD) shed 1.6% ahead of its quarterly results tomorrow afternoon.
Spotify Stock Rises After Price Hike
2 hr 29 min ago
Shares of Spotify Technology (SPOT) rose in intraday trading Monday after the streaming music provider announced an increase in subscription prices in the U.S.
The company reported the cost for individual Premium subscribers will increase to $11.99 per month from $10.99. The Duo plan is rising to $16.99 from $14.99, while the Family plan jumps $3, to $19.99 from $16.99. The student rate will stay the same at $5.99.
The new rates take effect in July, one year after the company last raised subscription prices.
Spotify shares were up 4.4% late in the session on Monday. They have climbed nearly 65% this year.
Oil Prices Slump as OPEC+ Lays Out Plans to Loosen Production Restrictions
3 hr 26 min ago
Oil futures and the stocks of oil companies tumbled on Monday after a group of leading OPEC+ members announced a plan to phase out production cuts announced late last year to prop up oil prices.
The group of eight oil producers, including Saudi Arabia, Russia, and Iraq, said that starting in October, they would gradually resume production of the 2.2 million barrels per day they cut last November. Production is forecast to reach pre-cut levels by the end of September 2025.
They will, however, maintain a 1.65 million barrel-per-day production cut announced in April 2023 until at least December 2025.
Oil futures contracts plummeted Monday morning, with the price of Brent crude sliding more than 3% to trade below $80 for the first time in nearly four months. West Texas Intermediate futures also fell more than 3% to less than $75.
The stocks of major oil companies also tumbled. The Energy Select Sector SPDR Fund (XLE) fell as much as 3.3% in intraday trading, its biggest one-day drop this year. Oil field services companies Halliburton (HAL) and Baker Hughes (BKR) were among the S&P 500’s worst performers.
Stericycle Stock Jumps on $7.2B Sale To Waste Management
3 hr 54 min ago
Waste Management (WM) has reached an agreement to acquire medical waste disposal company Stericycle (SRCL) in a deal valued at $7.2 billion including debt, sending the latter’s stock significantly higher Monday.
Waste Management will take on about $1.4 billion of Stericycle’s debt and pay $5.8 billion in cash at $62 per share, a 24% premium to its 60-day volume weighted average price as of May 23, the day before a Bloomberg report that Stericycle was considering a sale.
Pending regulatory approvals, the deal could close as soon as the fourth quarter of 2024.
Waste Management shares slipped about 5% as of Monday afternoon, while Stericycle shares jumped nearly 15% to $59.17, their highest level in more than two years.
Paramount Stock Advances on Report of Skydance Media Deal
4 hr 45 min ago
Paramount Global (PARA) shares jumped Monday on a report that the entertainment giant had agreed to a revised purchase offer by Skydance Media.
CNBC said the updated deal, which was first reported last week, would have David Ellison’s Skydance, along with private equity firms RedBird Capital and KKR, acquiring nearly half of Paramount’s Class B shares at $15 each. That would be a 26% premium to Paramount’s closing price on Friday.
The network noted the proposal would have Skydance and its backers buy out Shari Redstone’s National Amusements, which holds a majority stake in Paramount, for $2 billion. Redstone reportedly has yet to agree.
Shares of Paramount Global, which surged more than 8% as of Monday afternoon, have yo-yoed this year on the twists and turns of the battle over who would take control. Even with today’s gains, they’re down more than 12% for 2024.
Nvidia Stock Rises After AI Darling Reveals Next-Gen Chip
5 hr 30 min ago
Shares in Nvidia (NVDA), which sits on the precipice of joining the exclusive $3 trillion market capitalization club, rose Monday after Chief Executive Officer Jensen Huang said that the company’s next-generation artificial intelligence chip—branded as Rubin—would be released in 2026.
Huang kept details about the new family of chips limited, but said that the company has plans to unveil a new generation of chips each year, ramping up from its current release schedule of every two years.
Nvidia shares have remained in a strong uptrend since the 50-day moving average (MA) crossed above the 200-day MA in January last year to form a bullish golden cross pattern. Following the stock’s earnings gap to a new all-time high (ATH) on May 23, the price has continued its upward momentum, though saw some profit taking late last week.
If the pullback carries through to this week, investors should keep a close eye on the $970 level, where the price is likely to encounter a confluence of support around its prior record close at $974 and earnings gap breakout point.
Nvidia shares rose 3.7% and have more than doubled this year.
GameStop Soars as Keith Gill Indicates Large Position in Reddit Post
6 hr 40 min ago
GameStop (GME) shares soared Monday after Keith Gill, a key player in the original meme stock rally of 2020 and 2021, returned again to post on X and Reddit (RDDT), indicating a large position in the company.
On Sunday night, an account belonging to Gill, who posts under the usernames “Roaring Kitty” and “DeepF—ingValue,” posted a screenshot to the “Superstonk” subreddit of an account that holds 5 million GameStop shares, worth $115.7 million at the time the screenshot was taken and over $200 million Monday morning. Around the same time, a green reverse card from the card game Uno was posted to Gill’s X account.
Gill often posted similar updates to the subreddit in late 2020 and early 2021, the last coming in April 2021, when he backed away from his social media profiles after the original meme stock frenzy. In the last post before his three-year absence, Gill indicated he owned 200,000 GameStop shares worth $30.94 million.
Monday’s substantial rise is GameStop’s second surge in less than a month, but shares haven’t reached the same heights as last month or early 2021.
Shares in GameStop pared some of their gains from premarket trading but were still 30% higher, putting their gain to over 70% this year.
Berkshire Hathaway’s Class A Shares Plummet, Trading Halted
7 hr 17 min ago
Trading of several stocks was halted on Monday morning as the New York Stock Exchange investigated an apparent glitch that caused the price of Berkshire Hathaway’s (BRK.A) Class A shares to plummet more than 99%.
Other affected stocks included Barrick Gold (GOLD) and NuScale Power (SMR), each down more than 98%.
Berkshire’s class A shares trade at lofty valuations and volumes tend to be low, which means that few investors were likely affected by the glitch. Trading of Berkshire’s Class B (BRK.B) shares weren’t affected by the glitch.
Stocks Making the Biggest Moves in Early Trading
7 hr 45 min ago
Gains:
- Nvidia (NVDA): Shares rose 3% after CEO Jensen Huang announced plans to release next-gen AI chips in 2026 and said the chip designer would release new chips yearly.
- AMD (AMD): Shares rose 2%, after it, too, unveiled its latest AI chips, which CEO Lisa Su said would be ready for delivery in the fourth quarter.
- GameStop (GME): Shares pared some of their surge but are up 33% after Keith Gill, aka Roaring Kitty, appeared to show an over $100 million position in the struggling retailer in a Reddit post.
- Stericycle (SRCL): Shares surged 15% after Waste Management (WM) said it would buy the medical-waste disposal firm for $62 a share in cash, including $1.4 billion of Stericycle’s net debt, in a $5.8 billion deal. WM fell 2%.
Losses:
- GSK plc (GSK): Shares in the British pharmaceutical giant fell 8% after a Delaware state court said it would allow thousands of cases alleging the Zantac heartburn drug causes cancer to go to trial.
Stock Futures Up to Start June
9 hr 19 min ago
Dow futures were flat in premarket trading Monday.
S&P futures were up 0.2%.
Nasdaq futures were up 0.5%.