On 10 June 2024, the stock market started the session with losses but we saw the session ended with an upbeat note at close. There were limited moves in either direction.
The S&P 500 was down 0.3% at its low of the day and closed 0.3% higher, marking a fresh all-time high for the index. The Nasdaq Composite also logged a new record high, closing with a 0.4% gain. The market showed nice resilience to early selling efforts, which turned into upside support.
The turnaround action in $NVIDIA Corp(NVDA)$ shares helped to provide support to the broader market, though the stock price was down as much as 3.2% at session lows but it managed to close with 0.8% up. Nvidia (NVDA) continues to be seen as a "generational opportunity" by Evercore ISI, with the potential to capture a 15% weight of the S&P 500. The company recently surpassed a $3 trillion market cap.
$Eli Lilly(LLY)$ was another winner which help to influence the upbeat note, the stock price rose 1.8% after an FDA advisory panel voted 11-0 to recommend LLY's donanemab as a treatment for early-stage Alzheimer's disease.
Other mega caps also closed with gains, leading the $Vanguard Mega Cap Growth ETF(MGK)$ to close 0.3% higher. The only exception we saw in the mega cap space was $Apple(AAPL)$ , the stock price suffered an extended early loss after Apple introduce "Apple Intelligence," the personal intelligence system for iPhone, iPad, and Mac, at its Worldwide Developers Conference. Apple closed with 1.9% down.
Soft Demand For Monday’s $58 billion 3-year Note. Treasuries Rose.
The $58 billion 3-year note sale on Monday (10 June) met with soft demand, but treasuries was little changed before we saw the results.
After the results, the 10-year note yield rose four basis points to 4.47%, and the 2-year note yield rose one basis point to 4.88%.
Sector Performance
No significant winners in the S&P 500 sectors, consumer discretionary, energy, industrials, health care and information technology saw positive gains but it is less than 1%.
The information technology gain could be fueled by some of the mega cap stocks move.
Stocks To Watch
DXC Technology (DXC) surged 12% following reports that private equity firm Apollo Global (APO) and Kyndryl (KD) are in discussions for a joint bid to acquire the information technology services firm. The offer is rumored to be between $22 and $25 per share. DXC is also exploring the sale of its insurance software business for over $2 billion but may choose to remain independent. The stock saw an additional 4% gain in after-hours trading.
Apple (AAPL) kicked off its developer's conference by unveiling AI-centric updates to its operating systems, including a new AI system called Apple Intelligence. The system features tools for writing, summarizing, and creating original images. Apple (AAPL) announced at its developer's conference that the iPad will finally get a Calculator app as part of iPadOS 18. The app will support Apple Pencil, allowing users to write math problems directly. This follows the addition of a native Weather app two years ago.
This announcement did not seem to help Apple in its stock price. But from KDJ, it looks like it set the opportunity for a BUY signal. We might want to take a look at Apple, it is currently trading nicely above the 50-day period.
Merck & Co (MRK) continued its upward trend, marking its seventh consecutive day of gains. The stock closed up 0.63%, outperforming the broader S&P 500 market year-to-date.
Though Merck have been on upward trend for seven consecutive days, but the price looks to be a potential BUY as there is no gap up, and this could be something we can consider.
Intel (INTC) responded to reports that it was halting a $25 billion expansion of its chip facility in Israel by stating that managing large-scale projects often involves adapting to changing timelines. The company remains committed to its Israeli operations.
AMD (AMD) was downgraded by Morgan Stanley, citing high investor expectations for its AI business. The firm now rates AMD as Equal Weight, preferring Nvidia (NVDA) and Broadcom (AVGO) for their AI prospects.
Summary
I think this week we should be seeing some upbeat note coming only in the afternoon session, but the selling resilience is contained. So this might be useful as investors look forward to the CPI and PPI data released later in the week.
I would be into defensive though Nvidia still look like a potential opportunity, but health care stocks looks promising too.
Appreciate if you could share your thoughts in the comment section whether you think we will experienced upbeat note in the later trading session along this week?
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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