U.S. stocks advanced on Monday, building on their largest weekly percentage gain of the year as investors focused on the Democratic National Convention and the upcoming Jackson Hole Economic Symposium.
Market Snapshot
The Dow Jones Industrial Average rose 236.77 points, or 0.58%, to 40,896.53. The S&P 500 gained 54 points, or 0.97%, at 5,608.25 and the Nasdaq Composite added 245.05 points, or 1.39%, at 17,876.77.
Market Movers
Advanced Micro Devices signed an agreement to acquire ZT Systems, a provider of artificial-intelligence infrastructure for computing companies. The cash-and-stock transaction is valued at $4.9 billion, including a contingent payment of up to $400 million based on certain post-closing milestones. AMD said it expects the transaction to be accretive on a non-GAAP basis by the end of 2025. AMD rose 4.5%. Shares of AMD competitor NVIDIA Corp rose 4.4%.
Estee Lauder fell 2.2%. The cosmetics company issued a sales and earnings outlook for fiscal 2025 that Chief Executive Fabrizio Freda called “disappointing.” It also was announced that Freda plans to retire at the end of fiscal 2025 after 16 years in the role. The company said a search for a successor already was underway. Fiscal fourth-quarter adjusted earnings at Estee Lauder beat analysts’ estimates.
fuboTV Inc. was up 18% after a federal judge temporarily blocked the launch late this month of a rival sports streaming service backed by from Warner Bros. Discovery, Fox, and Walt Disney. Fubo shares rose 17% on Friday.
HP Inc was down 3.7% to $34.60. Shares of the personal computer and printer company were downgraded by Morgan Stanley to Equal Weight from Overweight and the price target was unchanged at $37.
Sweetgreen, Inc. was down 6.8% to $34.82. Piper Sandler downgraded the stock to Neutral from Overweight but raised its price target to $39 from $33. The firm also downgraded both Dutch Bros Inc. and Shake Shack to Neutral from Overweight. Dutch Bros fell 4% and Shake Shack declined 2.5%.
Shares of McDonald's rose 3.2% to $287.55 as analysts at Evercore raised their price target on the fast-food chain to $320 from $300. The firm maintained an Outperform rating on the stock.
Market News
Nvidia’s Stock Is up 30% from August Lows — and Earnings Could Further Its Momentum
Nvidia shares are up more than 30% from their low point earlier in August, helped by a six-day winning streak that’s their longest in almost five months.
The stock Nvidia is ahead 24% over the past six trading sessions, having just cemented its longest consecutive run of gains since a six-day winning streak that wrapped up March 25, according to Dow Jones Market Data.
And a big potential catalyst sits on the horizon. Nvidia is due to report fiscal second-quarter earnings next Wednesday afternoon, and Goldman Sachs analyst Toshiya Hari is feeling upbeat on balance.
Palo Alto Networks Gives Upbeat Forecast, Boosts Buybacks
Palo Alto Networks Inc. rose after issuing a quarterly profit outlook that beat Wall Street’s expectations and boosting its share buyback program. The shares jumped 2% in post-market trading.
The reported full-year sales of just over $8 billion was in line with consensus expectations that were moderated after it cut its outlook earlier this year.
Palo Alto’s also announced its board approved an additional $500 million to repurchase shares, increasing the total authorization to $1 billion.
Trump Says He May End EV Tax Credit; Is Open to Naming Elon Musk as an Adviser
Republican presidential candidate Donald Trump said on Monday that if elected he would consider ending a $7,500 tax credit for electric-vehicle purchases and that he would be open to naming Tesla CEO Elon Musk to a cabinet or advisory role.
