The S&P 500 and Nasdaq eked out record closing highs on Monday, although investors were cautious ahead of this week's consumer prices report and a Federal Reserve policy announcement.
Market Snapshot
The Dow Jones Industrial Average rose 69.05 points, or 0.18%, to 38,868.04, the S&P 500 gained 13.80 points, or 0.26%, to 5,360.79 and the Nasdaq Composite added 59.40 points, or 0.35%, to 17,192.53.
Market Movers
Nvidia - Nvidia started trading on a split-adjusted basis Monday. The 10-for-1 stock split in shares of Nvidia, the leader in artificial-intelligence chips, took effect Friday after the close of trading. The stock finished Friday at $1,208.88. In trading Monday, shares were up 0.8% to $121.79. Nvidia has risen 146% in 2024.
Apple - Apple fell 1.9%. The tech giant announced its new AI platform called “ Apple Intelligence” at the Worldwide Developers Conference on Monday, among a slate of other news.
Tesla - Elon Musk, the chief executive of Tesla, said over the weekend that “roughly 90%” of retail shareholders voted in favor of his compensation package at the electric-car company. Shareholders will vote Thursday on Musk’s $56 billion pay deal. The package awarding Musk about 300 million incentive-laden stock options was approved in 2018 with more than 70% support. A Delaware judge, however, voided it in January, citing inadequate disclosures made to Tesla investors. The company’s board put the same package up for another vote with new disclosures. Bernstein analyst Toni Sacconaghi wrote Monday that shareholders were unlikely to approve the pay package. Tesla was down 2.1%.
AMD - AMD fell 4.5% to $160.34 after shares of the chip maker were downgraded to Equal Weight from Overweight at Morgan Stanley and the price target was maintained at $176.
GameStop - GameStop stock fell 12%. Shares of the videogame retailer closed down 39% on Friday for their worst day since Feb. 4, 2021, after Keith Gill, the individual investor known as Roaring Kitty, used a livestream on Friday to reiterate his bullish position on the stock.
Southwest Airlines - Southwest Airlines rose 7% after activist Elliott Investment Management built a sizable stake in the carrier. Elliott said Monday it has built a stake valued at around $1.9 billion in Southwest, making it one of the airline’s largest shareholders.
Diamond Offshore Drilling - Diamond Offshore Drilling was up 11% to $15.45 after agreeing to be acquired for about $1.6 billion in a cash-and-stock deal by Noble Corp. Diamond Offshore shares were valued at $15.52 a share in the agreement when using Friday’s closing price.
KKR & Co LP, CrowdStrike, GoDaddy - KKR rose 11.2%, CrowdStrike was up 7.3%, and GoDaddy gained 1.9% after it was announced Friday that the three companies will join the S&P 500 later this month. They will replace Robert Half, Comerica and Illumina.
Huntington Bancshares - Huntington Bancshares fell 6.1% after the bank said it expects full-year net interest income to fall by 1% to 4% this year, down for previous guidance ranging from down 2% to up 2%.
Market News
Apple WWDC 2024: ChatGPT Comes to iPhone; "Apple Intelligence" Unveiled
Apple unveiled a long-awaited AI strategy on Monday, integrating its new "Apple Intelligence" technology across its suite of apps including Siri and bringing OpenAI's chatbot ChatGPT to its devices.
In the nearly two-hour long presentation at Apple's annual developer conference, executives including CEO Tim Cook touted how voice assistant Siri would be able to interact with messages, emails, calendar, as well as third party apps. Siri will be able to write emails and change the tone of voice to suit the occasion.
Long known for a focus on user safety, the iPhone maker also signaled it plans to differentiate itself from rivals Microsoft and Google by placing privacy "at the core" of its features.
Musk Warns That He Will Ban Apple Devices If OpenAI Is Integrated at Operating System Level
Billionaire Elon Musk said on Monday he would ban Apple devices at his companies if the iPhone maker integrates OpenAI at the operating system level.
"That is an unacceptable security violation," Musk, who is the CEO of electric-vehicle maker Tesla and rocket maker SpaceX and owner of social media company X, said in a post on X.
"And visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage," he said.
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