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Nasdaq hits new record; Dow aims to break above 40,000 again

Max SmithBy No Comments9 Mins Read


US stocks tilted higher on Monday as the Nasdaq Composite Index (^IXIC) hit an intraday high and the Dow Jones Industrial Average (^DJI) struggled to maintain the 40,000 level.

The S&P 500 (^GSPC) rose 0.3%, and the Dow swung around the flatline after the blue-chip benchmark closed above $40,000 for the first time in history on Friday. The tech-heavy Nasdaq Composite Index rose about 0.6% as Nvidia (NVDA) stock rose ahead of the chipmaker's earnings expected later this week.

Stocks rose as investors grew more optimistic that the Federal Reserve would cut interest rates soon, despite warnings from policymakers. All three major indexes closed at all-time highs on Friday as risk appetite increased and Wall Street strategists gave a bullish outlook for stocks.

The key question for investors is whether that outlook is sustainable or ahead of the Fed's direction. As Yahoo Finance's Josh Schafer reports, a key test will come Wednesday with the release of the minutes of the May Fed meeting.

On Monday, Fed Vice Chairman Philip Jefferson and Fed Vice Chairman Michael Barr pointed to disappointing inflation in the first quarter as a reason to keep interest rates where they are, giving them more time for restrictive policy to work. did it.

read more: How does the labor market affect inflation?

The market is bracing for Nvidia's highly anticipated quarterly results on Wednesday, seen as a key catalyst for the stock's rise. Expectations for the AI ​​chipmaker's revenue and earnings are sky-high, with expectations for growth of 400% and 240%, respectively, and the focus is once again on whether it can live up to the hype.

At the same time, there are growing concerns that the rise in commodity markets could lead to a knock-on rise in U.S. inflation. LME copper prices topped $11,000 a tonne for the first time, rising to a record high as investors flocked to looming supply shortages. Meanwhile, gold prices (GC=F) soared, hitting a new intraday high around $2,450 per ounce.

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  • Bitcoin rises 2% to recover above $68,000

    Bitcoin (BTC-USD) has risen more than 2% in the past 24 hours. The cryptocurrency soared to more than $68,000 per token on Monday, a level not seen in more than a month.

    Bitcoin has risen about 17% since the beginning of May.

  • monday trend ticker

    Nvidia (NVDA)

    Nvidia stock was the top ticker on Yahoo Finance's trend ticker page on Monday. The semiconductor giant is scheduled to announce earnings after the closing bell on Wednesday. Investors have high hopes for his AI darling as this highly anticipated print could be a market mover.

    “AI is going to change things just like it did when the internet came out about 30 to 40 years ago,” Randy Frederick, market strategist and founder of RandyFrederickMedia.com, told Yahoo Finance on Monday. Deaf,” he said.

    lee auto (Lee)

    Li Auto's stock fell 12% on Monday after the Chinese electric car maker announced a decline in quarterly profit compared to the same period last year. The company's sales also fell short of analysts' expectations.

    The stock is down 37% since the beginning of the year.

    norwegian cruise line (NCLH)

    Norwegian Cruise Line shares rose 8% after the company raised its full-year profit outlook for the second time in a month on the back of record bookings. The cruise company reported quarterly earnings per share of $1.42, about $0.10 higher than expected.

    “We continue to see very strong demand and record bookings,” Mark Kempa, Norwegian Cruise Line's chief financial officer, said in a statement.

  • Wall Street's biggest bear market reverses; S&P 500 price target raised by 20%

    Morgan Stanley's Mike Wilson has just finished claiming that US stocks will fall off a cliff.

    After the S&P 500 (^GSPC)'s year-end target remained at its lowest level last year, Morgan Stanley's chief investment officer changed his tune in a note to clients on Sunday.

    Wilson now expects the S&P 500 index to reach 5,400 within the next 12 months, topping his earlier view that the index would fall to 4,500. Wilson's new target reflects a roughly 2% rise in the index over the next 12 months as valuations fall and earnings continue to rise.

    “Our 2024 and 2025 earnings growth forecasts (8% and 13%, respectively) reflect margin expansion in both years as positive operating leverage returns (particularly in 2025). “We are assuming healthy mid-single-digit sales growth,” Wilson said. I wrote it in my memo.

    “The gradual compression of valuations as earnings adjustments rise (from about 20x to about 19x in the base case) is due to the mid- to late-cycle background (mid-1990s, mid-2000s, and most recently in 2018). occurrence) is typical.

    Please see here for the detail.

  • As inflation slows, two Fed officials expect to keep interest rates high for an extended period of time.

    Yahoo Finance's Jennifer Schonberger reports:

    Two Federal Reserve Board members on Monday reiterated their view that interest rates will remain at current levels until there is more evidence that inflation is falling, and central bank officials have recently indicated that they will continue to increase long-term interest rates. is emphasized.

    Fed Vice Chairman Philip Jefferson and Fed Vice Chairman Michael Barr cited disappointing inflation in the first quarter as a reason to keep interest rates where they are and give restrictive policy more time to work.

    “I think we're in a good position to remain stable and watch closely how the situation develops,” Barr said in a speech at the Atlanta Fed's conference in Florida.

    Read the full article here.

  • Nasdaq Composite hits new intraday high

    The Nasdaq Composite Index (^IXIC) hit an intraday high on Monday as tech stocks rose.

    The S&P 500 Technology Sector Select (XLK) also set a new record during the session. XLK is up more than 14% year-to-date, while the Nasdaq is up more than 13% in the same period.

    Semiconductor stocks rose on Monday ahead of Nvidia's (NVDA) highly anticipated earnings report, which is scheduled to be released after the market closes on Wednesday.

  • Nvidia rises 2% this week, outperforming semiconductor giants' results

    Nvidia (NVDA) shares rose more than 2% ahead of the chip maker's long-awaited earnings report scheduled for Wednesday.

    There are high hopes for this AI company, as its results could be an important catalyst for the market. Nvidia stock is up more than 90% since the beginning of the year.

    Other chipmakers that entered green territory on Monday include Micron (MU) and Advanced Micro Devices (AMD). The Nasdaq Composite Index (^IXIC) rose 0.5% in morning trading as semiconductor stocks rose.

    Semiconductors rise above expected Nvidia profit on WednesdaySemiconductors rise above expected Nvidia profit on Wednesday

    Semiconductors rise above expected Nvidia profit on Wednesday

  • Dow Jones Industrial Average drops below 40,000, but stock prices remain largely unchanged

    US stocks opened mixed on Monday as the Dow Jones Industrial Average (^DJI) struggled to extend Friday's gains.

    The blue-chip index opened just below the flatline after closing above 40,000 for the first time on Friday.

    The S&P 500 (^GPSC) rose slightly, and the tech-heavy Nasdaq Composite Index (^IXIC) rose about 0.4%.

    Investors are keeping an eye on Nvidia's (NVDA) financial results, which will be released on Wednesday. Traders are also keeping an eye on the metals market after gold (GC=F) hit a new intraday high this morning. Silver (SI=F) hovered near a nearly 12-year high, and copper (HG=F) also rose amid an energy transition that requires industrial metals.

  • Gold briefly reaches all-time highs as metals markets continue to rise

    Gold (GC=F) rose to just above $2,450 an ounce in early Monday trading, its all-time high before falling.

    Precious metals prices have rebounded, surpassing April's nominal highs, on expectations that the U.S. Federal Reserve will cut interest rates this year. High demand from central banks and Asian buyers has also pushed gold prices up about 17% since the beginning of the year.

    Meanwhile, silver (SI=F) remains at its highest since December 2012, briefly surpassing $32 an ounce on Monday after Friday's strong rally. Unlike gold, silver has industrial uses such as building solar panels.

    Copper (HG=F) hit a record high on Monday on concerns about supply shortages during the energy transition. Year-to-date, metal prices are up about 30%. John LaForge, Wells Fargo's head of real estate strategy, said the rally in recent days has likely attracted speculators, but the fundamentals of supply haven't changed.

    “Frankly, we don't produce enough copper. But there are buyers for this copper all over the world,” LaForge recently told Yahoo Finance.

    “It doesn't matter if it's China, India or the United States. Everyone is driving a green transition, and copper is the number one metal when thinking about that future.”

  • watching Dr. Copper

    If the economy is bracing for a pre-election slowdown, it's unlikely to be the industrial metal copper.

    Copper prices hit record highs.

    Bronze medalist Rio Tinto (RIO) is aiming for its highest price in a year.

    Looking at copper prices over a five-year period, they are at record highs.Looking at copper prices over a five-year period, they are at record highs.

    Looking at copper prices over a five-year period, they have hit record highs. (Yahoo Finance)

  • Expectations are very high for Nvidia

    I woke up today to find that Nvidia (NVDA) is the No. 3 trending ticker on the Yahoo Finance platform ahead of Wednesday's earnings report.

    Clearly, the retail investor community is bracing for another great earnings day (results and guidance) from the AI ​​darling.

    But the important point is what Bank of America's Vivek Arya said this morning. Nvidia's greatness may not be enough.

    Aria says:

    “According to the bullish investors we spoke to, expectations appear to be well above consensus expectations, as usual, with reported fiscal first quarter (April) sales expected to be $26 billion. This is 6% above the consensus of $24.6 billion, and we expect guidance to be close to consensus expectations.”Second, gross margin is expected to reach 77% in the first quarter. , expected to decline to 75%-76% in Q2 (with some period of normalization). (Temporary factors have pushed the stock over 75% in recent quarters.) But even if Nvidia lives up to these bullish expectations, bears could complain that: Stock prices may still react unfavorably. The outlook for the fiscal second quarter (July) is “only” 7%-8% sequentially, and for the past few quarters he has been in the mid-teens or well below. 2) Gross profit margins have peaked and a decline is a sign of price pressure, which is not good. mix (increase in China's H20 shipments and/or increase in inference units) and demand slowdown/supply moderation. ”

  • Memories of Nvidia

    Deutsche Bank strategist Jim Reid pondered this ahead of Wednesday's Nvidia (NVDA) earnings report.

    “Recall that this time last year, the mainstream AI frenzy started around Nvidia’s earnings release, with the company’s stock up more than 20% on earnings day and now tripling in value in 12 months. ”

    Nvidia stock has increased 197% since its earnings report on May 24, 2023.



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