Megacap growth stocks led by Apple and Tesla lifted the tech-heavy Nasdaq to a higher close on Monday, while the Dow and the S&P 500 also eked out slight gains in light pre-holiday trading.
Market Snapshot
The Dow Jones Industrial Average rose 50.66 points, or 0.13%, to 39,169.52 the S&P 500 rose 14.61 points, or 0.27%, to 5,475.09 and the Nasdaq Composite rose 146.69 points, or 0.83%, to 17,879.30.
Market Movers
Tesla closed up 6.1% to $209.86 after shares of the electric-vehicle maker crossed $200 for the first time in three months on Friday ahead of the company’s second-quarter deliveries report. The company usually reports quarterly deliveries on the second day of a new quarter. The most current Wall Street estimates say Tesla will report about 420,000 car deliveries in the second quarter, down from about 466,000 a year earlier.
Apple climbed 2.9%, Microsoft rose 2% and Amazon.com ended 2.2% higher, boosting the Nasdaq.
Boeing reached an agreement to buy back its fuselage supplier Spirit AeroSystems for $37.25 a share in stock in a move to improve its manufacturing quality. The deal values Spirit Aero at about $8.3 billion, including the company’s debt. Spirit Aero was a part of Boeing until 2005 when Boeing sold it to a private-equity firm. Spirit Aero then went public a year later. Spirit Aero shares rose 3.4% to $33.97.
Boeing, meanwhile, was up 2.6%. Reports said the Justice Department will charge Boeing with fraud. The decision comes after the Justice Department said Boeing violated the terms of a 2021 deferred prosecution agreement in May. Prosecutors plan to ask the plane maker to plead guilty to deceiving air-safety regulators about certain aspects of two 737 MAX crashes that occurred within in 2018 and 2019, The Wall Street Journal reported.
Chewy fell 6.6%, having climbed as much as 18% in the premarket session, after Keith Gill, the investor known as Roaring Kitty on social media, reported a6.6% stake in the pet-products retailer in a regulatory filing. GameStop was down 5.5%. Gill is known for betting big on the videogame retailer and streaming his bullish thesis ahead of the 2021 meme stock frenzy.
U.S.-listed shares of NIO rose 6.7% after the Chinese electric-vehicle maker delivered 21,209 vehicles in June, an increase of 98% from a year earlier. Deliveries in the second quarter were 57,373 vehicles, up 144% from the second quarter of 2023.
Cassava Sciences was down 1.7% The stock tumbled 35% on Friday following the federal indictment of a lead scientist working as an advisor for the biotech company, which has an Alzheimer’s drug in Phase 3 trials. The indictment claimed that Hoau-Yan Wang, a paid advisor to the company and a medical professor at the City University of New York, defrauded the National Institutes of Health out of about $16 million in federal grant funds.
Trump Media & Technology Group, which owns the Truth Social media platform, rose 1% after closing with a decline of 11% on Friday. The Supreme Court ruled Monday that former President Donald Trump can claim some immunity from prosecution for acts taken while in office. The ruling complicates efforts to prosecute Trump for his alleged attempt to subvert the 2020 election, The Wall Street Journal noted.
Lumen Technologies was up 0.9% to $1.11 after analysts at Goldman Sachs initiated coverage of the telecommunications company with a Sell rating and price target of $1.
Market News
US manufacturing extends slump; inflation pressures ebbing
U.S. manufacturing contracted for a third straight month in June as demand remained subdued, while a drop in a measure of prices paid by factories for inputs to a six-month low suggested that inflation could continue to subside.
The ISM's manufacturing PMI slipped to 48.5 last month from 48.7 in May. A PMI reading above 50 indicates growth in the manufacturing sector, which accounts for 10.3% of the economy. The PMI remains above the 42.5 level, which the ISM says over a period of time indicates an expansion of the overall economy.
Nvidia set to face French antitrust charges, sources say
Nvidia is set to be charged by the French antitrust regulator for allegedly anti-competitive practices, people with direct knowledge of the matter said, making it the first enforcer to act against the computer chip maker.
The French so-called statement of objections or charge sheet would follow dawn raids in the graphics cards sector in September last year, which sources said targeted Nvidia. The raids were the result of a broader inquiry into cloud computing.
