Stocks finished mixed on Thursday as Wall Street pulled back from recent record closes.
The Dow Jones Industrial Average gained 299 points, or 0.77%, to finish at 39,134.76, while the S&P 500 slipped 0.25% to end at 5,473.17 and the tech-heavy Nasdaq lost 0.79% to 17,721.59.
Nvidia shares hits a fresh record high of $104.76 in the session, as the AI chipmaker extends its lead over Apple and Microsoft as the world's most-valuable company, before ending the day down 3.54% to $130.78.
Updated at 11:20 AM EDT
$3.4 trillion and counting
Nvidia shares hits a fresh record high of $104.76 each Thursday, and were last marked 2.5% higher at $139.00, as the AI chipmaker extends its lead over Apple and Microsoft as the world's most-valuable company.
Related: Nvidia has $4 trillion value in sight as AI seen powering chip sales
Updated at 9:37 AM EDT
Mixed open
The S&P 500 opened a fresh record high Thursday, and was last marked 21 points, or 0.39% to the good in early trading. The Nasdaq, meanwhile, also printed a new all-time peak and was last up 31 points, or 0.17%.
Early declines for Boeing (BA) and JPMorgan (JPM) have the Dow trading 32 points lower in the opening minutes.
Benchmark 2-year notes yields were marked at 4.754%. with 10-year notes rising to 4.292%, following some imbedded price pressures in the May Philly Fed index.
S&P 500 Opening Bell Heatmap (Jun. 20, 2024)$SPY +0.08%🟩$QQQ +0.11%🟩$DJI -0.08%🟥$IWM -0.46%🟥 pic.twitter.com/bsaaMfAOsa
— Wall St Engine (@wallstengine) June 20, 2024
Updated at 8:38 AM EDT
Data dump
Weekly jobless claims eased modestly over the period ending on June 15, falling by 4,000 to a higher-than-expected tally of 238,000.
Housing starts, meanwhile, fell 5.5% in May to an annualized rate of 1.277 million units, the Commerce Department said, with permits for new construction slumping to an annual pace of 1.386 million, well below the Street's 1.45 million forecast.
Finally , the Philadelphia Fed's reading of manufacturing activity around the mid-Atlantic region slowed to 1.3 in June from 4.5 in May, with a bump higher in input prices and modest improvements in new orders and employment prospects.
❖ U.S. JOBLESS CLAIMS DUE 8:30 A.M. ET; EXP 235K FOR WEEK
— *Walter Bloomberg (@DeItaone) June 20, 2024
❖ U.S. MAY HOUSING STARTS DUE 8:30 A.M. ET; EXP +1.5%
Updated at 8:07 AM EDT
McLovin it?
McDonald's (MCD) shares edged higher in early trading after the world's biggest restaurant chain said it would introduce a limited time value meal in the U.S.
McDonald's, which has pushed back hard against accusations of post-pandemic price increases, said the new "$5 meal deal" would launch in participating stores on June 25 and include a sandwich, nuggets, fries and a drink.
McDonald's shares were marked 0.1% higher in premarket trading to indicate an opening bell price of $251.00 each.
$McD Corp keeps it classy and rarely barks back.
— McFranchisee (@McFranchisee) May 29, 2024
HOWEVER, last month @financebuzz spewed some data that was widely inaccurate. Sadly, no one (including Finance Buzz) took 5 minutes to double check their data & soon this false narrative on our pricing took off like a rocket 🚀… https://t.co/EdjQhElXdO pic.twitter.com/I1rvkhvEzR
Updated at 7:05 AM EDT
Bank of England Hold
The Bank of England held its key Bank Rate unchanged at 5.25% today in London, opting to wait for next month's parliamentary elections before reducing the rate, which has remained at the highest levels in 16 years.
The central bank stated that the July 4 vote was not a factor in its decision-making, however, "which would as usual be made on the basis of what was judged necessary to achieve the 2% inflation target sustainably in the medium term."
The Monetary Policy Committee voted by a majority of 7-2 to maintain #BankRate at 5.25%.
— Bank of England (@bankofengland) June 20, 2024
Find out more: https://t.co/1nN6lt3Feu pic.twitter.com/QfcBpmvXyT
Check back for updates throughout the trading day
Stocks ended the preholiday break with another set of records on Tuesday, with Nvidia (NVDA) eclipsing Microsoft (MSFT) as the world's most-valuable company and helping power the Nasdaq to an all-time peak of 17,862.23 points.
The S&P 500, which has gained more than 15% this year, is also trading at the highest levels in history and could top the 5,500 point mark in early Thursday trading.
Related: US stocks widen gap on world as investors plow cash into S&P 500
Investors are still concerned, however, that megacap tech names are driving the bulk of both this year's gains and the market's late-spring rebound. Nvidia alone is responsible for around a third of the overall advance since the April lows.
"The lack of confirmation in breadth and momentum does not mean the bull market is over, but it does imply stocks could be due for a pause or pullback unless this rally begins to broaden out," said Adam Turnquist, chief technical strategist for LPL Financial.
"Concentrated leadership at important breakout points followed by a broader rotation has been the playbook of this 'Field of Dreams' bull market, where megacaps build the breakout and other stocks follow," he added.
Peter Macdiarmid/Getty Images
Early Thursday direction, however, is likely to come from the Labor Department's weekly jobless claims data at 8:30 a.m. U.S. Eastern Time, as well as housing starts data for the month of May.
Investors will also be watching for a key Bank of England rate decision in London prior to the start of trading following inflation data that hit the central bank's target for the first time in three years.
Related: Consumers tapping out amid sticky inflation and slowing job market
Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500 suggest an opening bell gain of around 26 points, with the Dow Jones Industrial Average called around 55 points higher.
The tech-focused Nasdaq, meanwhile, could test the 18,000 point mark with an opening bell gain of 130 points.
Nvidia shares were marked 2.6% higher in premarket trading to indicate an opening bell price of $139.12, an all-time high that would lift its value to around $3.43 trillion.
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 overseas markets, London's FTSE 100 was marked 0.17% higher heading into the Bank of England rate decision at noon local time, with the regionwide MSCI ex-Japan benchmark rising 0.53% in Frankfurt.
Overnight in Asia, Japan's Nikkei ended 0.16% higher in Tokyo while the regional MSCI ex-Japan benchmark slipped 0.66% into the close of trading.
Related: Veteran fund manager picks favorite stocks for 2024
