The S&P 500 (+0.3%) and Nasdaq Composite (+0.9%) climbed further into record territory on 11 June (Tuesday), The index performance receive a nice boost from the huge jump in shares of Apple (AAPL) , which also hit a fresh record high. This came after Apple Monday (10 June)'s product/AI presentation at its Worldwide Developers Conference.
However, financial stocks like American Express (AXP) and JPMorgan (JPM) weighed down the Dow.
In afternoon trading session, we also show other mega cap stocks picked up steam after they react to a drop in market rates. The $Vanguard Mega Cap Growth ETF(MGK)$ settled 1.1% higher.
Treasury Yield Fell Ahead Of CPI
The 10-yr note yield fell seven basis points lower at 4.413%, and the 2-yr note yield fell five basis points to 4.849% in response to a strong $39 billion 10-yr note sale. The yield action came ahead of the May Consumer Price Index, which is released at 8:30 Eastern Time today.
Beside the CPI, today (12 June)’s calendar also have the FOMC policy directive, which includes the following:
We saw market presented hesitation in front of these market-moving events which kept the broader market in check despite the outperformance in mega caps.
Only Two Sectors Closed With Gains
Despite the outperformance coming from mega caps stocks, the S&P 500 sectors only have two members closed with gains. The Information Technology sector closed with +1.66% and Communication Services closed with +0.5%.
The financial sector was the significant decliner with a fall of 1.21%.
NFIB Small Business Optimism Survey Rose
Tuesday (11 June) we have the NFIB Small Business Optimism survey, which rose to 90.5 in May from 89.7 in April. We will be expecting the May Consumer Price Index at 8:30 Eastern Time.
Stocks To Watch
$Oracle(ORCL)$ shares rose 5% in extended-hours trading on Tuesday after reporting fiscal fourth-quarter results and announcing several key AI-centric deals. The company earned an adjusted $1.63 per share on $14.3B in revenue, with cloud revenue coming in at $5.3B. Despite missing some estimates, Oracle saw significant growth in infrastructure and application revenue and signed the largest sales contracts in its history, driven by demand for AI training in the Oracle Cloud.
Though MACD present a declining potential and KDJ is also indecisive with a downward trend seen, but with the significant earnings result boosted by the demand for AI-centric deals, we should be able to see Oracle managing a new MACD crossover.
On the KDJ side, we might see a new BUY signal coming despite after-hours surge of 5%, the comfortable price target should be around $123.
$Apple(AAPL)$ surged during Tuesday's session, hitting an intraday peak for the first time since December last year. The tech giant impressed investors with its AI offerings at its annual developers conference, contributing to record highs in the S&P 500 and Nasdaq Composite.
For Apple, the comfortable price target was actually formed on Monday (10 June) around $195, but now we have seen Apple surge to a new highs.But I am expecting some correction where Apple might come back to around $200.
This might be a chance for us to take advantage of a buying opportunity.
Robinhood Markets (HOOD) reported equity notional trading volume of $86.8B in May, up 23% from April. However, its crypto notional trading volume dropped 30% from the prior month. Assets under custody grew to $135.0B, with net deposits at $3.6B.
Costco Wholesale (COST) shares gained for the seventh straight session, registering a near 5% jump over that period. The stock has risen about 27% since the start of the year, outperforming the broader market. Analysts generally rate the company as a Buy.
HP (HPQ) declared a $0.2756/share quarterly dividend, in line with previous dividends. The forward yield is 3.03%, with the dividend payable on October 2. The company is optimistic about the potential for an AI PC supercycle to drive further growth.
Orchid Island Capital (ORC) declared a $0.12/share monthly dividend, maintaining its forward yield at 17.52%. The dividend is payable on July 30, continuing the company's trend of high yield payouts.
Stocks You Might Want To Avoid
Paramount Global (PARA) shares dropped 8% amid reports that Shari Redstone's National Amusements halted merger talks with Skydance Media. The negotiations reportedly fell apart over disagreements on a potential shareholder vote for merging Paramount into Skydance. As a result, Redstone is now expected to pursue the sale of just National Amusements.
Autodesk (ADSK) reported Q1 Non-GAAP EPS of $1.87, missing estimates by $0.11, and revenue of $1.42B, which also missed by $60M. Despite the misses, the company's operating margin improved, and cash flow from operating activities was strong at $494 million.
Comcast (CMCSA) shares continued their losing streak, closing 1.2% lower on Tuesday. The stock has lost more than 11% so far this year, underperforming the S&P 500. Despite this, Comcast received a Strong Buy rating from analysts, with high marks for profitability.
Summary
Even though the mega cap stocks did picked up performance, but it did not help to push the market up broadly, as there are still uncertainty and indecision from traders and investors.
Today two stocks that we could keep watch are Apple and Oracle, both have benefited from the AI boost, but will CPI dampen this AI good sentiment?
Appreciate if you could share your thoughts in the comment section whether you think CPI would dampen the mega caps stocks strength gathered to push higher today (12 June)?
@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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