The S&P 500 and Nasdaq closed at record highs on Tuesday, buoyed by Nvidia's continued surge to new peaks, while the Dow ended barely higher in subdued pre-holiday trading following softer-than-expected U.S. retail sales data.
Nvidia overtook Microsoft to become the world's most valuable company, ending the day with a market capitalization of $3.22 trillion.
Market Snapshot
The Dow Jones Industrial Average rose 56.76 points, or 0.15%, to 38,834.86. The S&P 500 climbed 13.80 points, or 0.25%, to 5,487.03 and the Nasdaq Composite gained 5.21 points, or 0.03%, at 17,862.23.
Market Movers
Nvidia rose 3.5% to $135.58 and passed Microsoft to become the largest company by market value. Nvidia’s recent 10-for-1 stock split has helped the stock’s rally. Meanwhile, Nvidia’s weighting in the $70 billion Technology Select Sector SPDR ETF looks set to be increased. The ETF is scheduled to rebalance its holdings on June 21.
Micron Technology rose 3.8% to $153.45 as analysts boosted their price targets on shares of the chip maker ahead of its earnings report next week. Stifel raised its price target to $165 from $145, Wedbush boosted its target to $170 from $130, and analysts at BofA Securities added the stock to its “US 1 List.”
Shares of Tesla fell 1.4% following the bankruptcy filing of electric-vehicle start-up Fisker. Tesla jumped 5.3% on Monday, with CEO Elon Musk’s approved pay package the main reason behind the stock’s move, according to Al Root of Barron’s.
GameStop was down 2.1%. Shares of GameStop tumbled 12% on Monday after CEO Ryan Cohen highlighted the videogame retailer’s large cash position and alluded to out plans for the company to cut costs and scale back its network of physical stores to focus on profitability.
GE Aerospace was up 1.1% following a jump of nearly 5% on Monday after The Wall Street Journal reported that CEO Larry Culp turned down the opportunity to run Boeing. Commercial aerospace giant Boeing has been searching for a chief executive since Dave Calhoun announced in March he would leave at the end of 2024.
Calhoun, meanwhile, appeared before a Senate subcommittee on Tuesday that is investigating problems at Boeing. The CEO had to convince lawmakers the company is making substantial progress in improving its manufacturing and production processes. Boeing shares fell 1.9%.
Lennar posted fiscal second-quarter earnings that topped analysts’ expectations and the home builder said it delivered 19,690 homes to customers in the period, up 15% from a year earlier. Lennar also reported 21,293 new orders, up 19%. The stock was falling 5% after the company said it expects home deliveries of 20,500 to 21,000 in the third quarter, while analysts estimate 20,910 deliveries.
Chegg rose 3.5% after the online learning company said it would reduce its workforce by 23% and would refocus its business on students, its core audience.
NextEra Energy fell 2.6% after the company said it planned to sell $2 billion of equity units for $50 each.
Market News
Nvidia Eclipses Microsoft as World's Most Valuable Company
Nvidia became the world's most valuable company on Tuesday, dethroning tech heavyweight Microsoft as its high-end processors play a central role in a scramble to dominate artificial intelligence technology.
Shares of the chipmaker climbed 3.5% to $135.58, lifting its market capitalization to $3.335 trillion, just days after overtaking iPhone maker Apple to become the second most valuable company.
Microsoft's stock market value was $3.317 trillion as its shares dipped 0.45%.
Apple's stock slipped over 1%, leaving its value at $3.285 trillion.
AMD Investigating Claims That Company's Data Was Stolen in Hack
Advanced Micro Devices said on Tuesday it was looking into claims that the company's data was stolen in a hack by a cybercriminal organization.
"We are working closely with law enforcement officials and a third-party hosting partner to investigate the claim and the significance of the data," the chipmaker said in a statement.
According to media reports, an organization called "Intelbroker" conducted a breach of AMD's data.
Amazon Fined $5.9 Million over Warehouse Worker Quotas in California
Amazon.com has been fined $5.9 million by a California labor regulator who says the online retail giant failed to properly inform workers of productivity quotas at two warehouses, including one where some workers are trying to unionize.
The office of California Labor Commissioner Lilia Garcia-Brower announced the fines, which were issued in May, on Tuesday.
A 2022 California law requires employers to provide written descriptions of quotas to workers if they can be disciplined for failing to complete jobs at a specified speed. The commissioner said Amazon violated that law nearly 60,000 times in a five-month period ending in March at massive warehouses in Moreno Valley and Redlands, outside of Los Angeles.
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