Stocks ended mixed Tuesday, with the S&P 500 and the Nasdaq closing at record highs heading into the start of the Federal Reserve's two-day policy meeting, as Apple hit a record high.
The Dow Jones Industrial Average lost 120.62 points, or 0.31%, to finish at 38,747.42, while the S&P 500 advanced 0.27%, closing at 5,375.32, while the Nasdaq Composite added 0.88% to end at 17,343.55.
Apple surged to finished at fresh record high as Wall Street continued to react to announcements from the company's Worldwide Developers Conference.
Shares finished up 7.3% to at $207.15.
“With markets on high alert as to whether mega-tech can maintain its momentous lead, Apple's annual Worldwide Developers Conference is being judged through the lens of AI,” said Quincy Krosby, chief global Strategist for LPL.
With Apple in a broad cross-section of portfolios, Krosby said "it is key that any announcement stemming from WWDC 2024 must be trend setting beyond current expectations amid rumors that the iPhone's operating system is scheduled to be upgraded with OpenAI technology."
Updated at 1:20 PM EDT
Fed in focus
Stocks are struggling to shake-off their weak start heading into the afternoon session, with even a fresh record high for Apple failing to lift the Dow and lower Treasury yields unable to boost the S&P 500 ahead of tomorrow's key Fed rate decision.
Benchmark 10-year notes yields were last marked 2 basis points lower on the day at 4.402% following a solid auction of $39 billion in new paper while 2-year notes traded at 4.845%.
The S&P 500 was last marked 9 points lower, or 0.16%, while the Dow slumped 266 points. The Nasdaq, however, is up 50 points, or 0.29%.
Ahead of tomorrow's US inflation data release, here's via Bloomberg a (rather brave) set of projections from JPMorgan on the markets' potential reaction to different monthly readings for the change in the CPI.#economy #inflation #markets @jpmorgan @econtwitter pic.twitter.com/k78aBPZMPK
— Mohamed A. El-Erian (@elerianm) June 11, 2024
Updated at 12:02 PM EDT
Apple of the market's AI
Apple (AAPL) shares are extending earlier gains, rising more than 5.8% to a fresh record high of $205.45 each, following a series of analyst upgrades tied to the tech giant's AI event yesterday in Cupertino.
Apple unveiled a host of AI tools it will rollout through its newer iPhones, including an overhauled Siri and the planned introduction of ChatGPT into its operating system.
"We believe Siri received its biggest upgrade ever and comes integrated with free access to ChatGPT for users," said CFRA analyst Angelo Zino "It also highlighted the benefits of overlaying AI with consumer data, providing a personal touch, and repeatedly stressing the importance of privacy, announcing its Private Cloud Compute platform."
$AAPL sends its best regards to ... the rest of the S&P 500 🤣 pic.twitter.com/QHixsdvDJl
— Markets & Mayhem (@Mayhem4Markets) June 11, 2024
Updated at 10:54 AM EDT
A GameStop of halts
GameStop (GME) was halted from trading on the New York Stock Exchange again Tuesday as shares hit a session high of $26.24 each after hitting a $22.79 low in the opening minutes of trading.
Options market volatility is also on the rise amid big mark-to-market declines in the holdings of retail investor Keith "Roaring Kitty" Gill, whose social media return last month trigged a 600% rally in the money-losing video game retailer.
Related: GameStop stock slide puts Roaring Kitty options stake in spotlight
Updated at 9:43 AM EDT
Weak start
The S&P 500 was marked 20 points lower, or 0.38%, in the opening minutes of trading while Nasdaq slipped 20 points, or 0.2%. The Dow was last marked 262 points lower.
S&P 500 Opening Bell Heatmap (Jun. 11, 2024)$SPY -0.42% 🟥$QQQ -0.31% 🟥$DJI -0.66% 🟥$IWM -1.38% 🟥 pic.twitter.com/eZT1imfK2O
— Wall St Engine (@wallstengine) June 11, 2024
Updated at 9:25 AM EDT
GM cash back
General Motors (GM) shares jumped firmly higher in premarket after the carmaker approved a $6 billion buyback following last month's dividend boost.
GM, which raised its dividend by 33% to 12 cents per share following a stronger-than-expected fourth quarter earnings update in January, continues to invest billions in its longer-term shift towards EV production under CEO Mary Barra.
GM shares were marked 1.3% higher to indicate an opening bell price of $48.18 each.
2-year high for $GM: pic.twitter.com/BT6HlsWzu3
— Conor Sen (@conorsen) June 10, 2024
Stock Market Today
Stocks ended higher on Monday, with the S&P 500 notching its 26th record close, powered in part by megacap tech gains, following an uneven session that suggested a fair amount of investor caution heading into tomorrow's Fed rate decision.
The central bank is also set to publish fresh growth and inflation forecasts alongside its policy statement. Investors expect a sharp reduction in the number of rate cuts from Fed officials between now and year's end.
"The Fed will likely hold its forward guidance largely unchanged," said Bill Adams, chief economist for Comerica Bank in Dallas.
"On the one hand, the Fed would not hesitate to raise rates further if they assess that interest rates need to be higher to control inflation," he said. "On the other hand, most Fed policymakers think rates are already high enough to keep inflation headed lower, and expect it to cool later this year and open the door to interest rate cuts."
The looming Fed decision is likely to keep a cap on sentiment throughout today's session, especially with a key May inflation report expected prior to the start of trading tomorrow.
Benchmark 10-year Treasury note yields were little changed at 4.454% heading into the start of the New York trading session, with 2-year notes pegged at 4.847%.
The U.S. dollar index, which tracks the greenback against a basket of global currency peers, was marked 0.04% higher at 105.191.
On Wall Street, stocks are set for a muted open, but recent trading patterns suggest the likelihood of larger upside moves during the trading day, with the VIX index of market volatility marked 6.9% higher at $13.06.
Futures contracts tied to the S&P 500 suggest a 10-point opening-bell gain while those linked to the Dow Jones Industrial Average suggest a 130-point pullback. The Nasdaq is called 45 points lower.
Stocks on the move include Apple (AAPL) , which was marked 0.42% lower following yesterday's AI launch event. The tech giant unveiled a series of new tools and a tieup with Microsoft-backed (MSFT) ChatGPT.
Eli Lily (LLY) shares, meanwhile, jumped 2.9% after an independent panel of advisers to the U.S. Food and Drug Administration recommended approval of its Alzheimer's treatment known as donanemab.
Oracle (ORCL) shares slipped 0.16% ahead of the cloud-computing group's fiscal-fourth-quarter earnings, slated for after the closing bell. Investors are looking for a bottom line of $1.65 per share on revenue of $14.59 billion.
More Wall Street Analysts:
- Analyst revamps Microsoft stock price target despite controversy
- Analysts reset Nio stock price targets after earnings
- Dollar Tree’s new price strategy prompts analysts to revise targets
In Europe, the regionwide Stoxx 600 traded firmly in the red for a second consecutive session and was last marked 0.51% lower in Frankfurt. The move came amid the fallout from weekend parliamentary elections and French President Emmanuel Macron's decision to call a snap vote slated for June 30.
Overnight in Asia, a weaker yen and stronger tech stocks helped lift the Nikkei 225 0.25% higher in Tokyo, while the regional MSCI ex-Japan benchmark fell 0.63% into the close of trading.
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