Wall Street Sees Little Change; S&P 500, Nasdaq Set to Climb to New Highs

At the opening of Wall Street this Monday, the Dow Jones index rose 0.38% at the start of the session to 39,527 points, the S&P 500 index consolidated at the high with a gain of 0.16% to 5,576 points, while the Nasdaq OMX rose 0.04% and is standing still at 18,360 points.

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S&P 500 ends fourth positive week in last fiveamid optimism that easing inflation (and any pockets of economic weakness later this year) could lead to interest rate cuts by the Federal Reserve.

June consumer price index to be released on Thursdaycould bolster those hopes if the overall reading shows a slight improvement as expected. This is certainly a stellar week.

Last week’s employment data showed a slight cooling in the labor market, fueling expectations for a rate cut. But even though the U.S. economy added more jobs than expected in June, There was also an unexpected rise in the unemployment rate, to 4.1% from 4%..

Traders are currently expecting two interest rate cuts in 2024: the first in September, according to the CME’s FedWatch tool, although the second, December one, is not so clear-cut and still does not reach 50% of analysts.

Stocks are having a strong week as S&P 500 and Nasdaq hit record highs on FridayThe broad market index hit its 34th record close in 2024. The S&P 500 gained 0.54% to 5,567.19, while the Nasdaq 100 rose 1.02% to 20,391.97. The Dow Jones Industrial Average added 0.17% to 39,375.87.

The macroeconomic agenda contains no important mentions. beyond the Conference Board’s Employment Trends IndexIn addition to the inflation data due on Thursday, the producer price index will be released on Friday.

Tomorrow, Investors will be watching Federal Reserve Chairman Jerome Powell. who will appear before the Senate Banking Committee (the upper house of the U.S. Congress) as part of his biannual testimony to the legislature. He will repeat the speech in the House of Representatives the following day.

Banks begin reporting season

On the business side, Morphic Holding shares rose more than 75% on news that Eli Lilly will acquire the biopharmaceutical company for $3.2 billion. The deal will give Eli Lilly access to Morphic’s pipeline of drugs, such as those for ulcerative colitis and Crohn’s disease. Eli Lilly shares rose 0.2% on the news.

Boeing also agreed to plead guilty to fraud charges months after federal prosecutors said the planemaker violated a 2021 agreement that shielded it from prosecution. The company’s shares rose half a point in premarket trading.

According to the agreement announced late Sunday, Boeing to pay $243.6 million finewill establish independent compliance monitoring for three years and invest at least $455 million in compliance and security programs. The agreement must be approved by a federal judge before it can go into effect.

In 2021 Boeing has reached a $2.5 billion settlement with the Justice Department over charges related to the deadly 737 Max crashes. The settlement included an initial $243.6 million criminal fine, compensation to the airlines and a $500 million fund for the victims’ families.

This was reported by the lawyer for the families of the victims. He plans to ask a federal judge to reject the settlement and move the case to a public trial.

Paramount Global’s Board of Directors Approves merger with Skydance Mediabacking a deal to merge one of Hollywood’s oldest studios with an up-and-coming production company, Reuters reports.

The proposed merger would combine Paramount with its namesake film studio and its television networks CBS, MTV and Nickelodeonwith his financial partner on several major films. So far, Paramount’s film prices have risen 2.5% in preliminary negotiations.

SolarEdge is also news. The energy company’s shares rose 4.8% at the open after Bank of America upgraded the stock to neutral from underperform, citing an attractive entry point for investors. However, The firm said it expected a “more robust” recovery in margins and cash flow.

Several big banks, including Citigroup and JPMorgan Chase, begin second-quarter earnings season this week. Pepsico and Delta Air Lines are also due to report results. “The bar is set high for analysts, who expect S&P 500 earnings to have grown just over 10% year over year last quarter. It will be a matter of seeing whether companies can beat that and, above all, how optimistic they are about the future of the economy and their businesses,” he says. Juan J. Fdez-Figares, Link Securitiesreferring to the current earnings season.

Fixed income will rise slightly this Monday, The benchmark 10-year U.S. bond offers a lower yield than its pre-opening yield despite a slight rise to 4.283%US 2-year bonds are yielding 4.629%.

In the raw materials market oil prices They are falling after four weeks of gains after the prospect of a ceasefire deal in Gaza eased geopolitical tensions in the Middle East, while investors weighed the potential disruption to US energy supplies due to Tropical Storm Beryl.

Oil futures Brentlink in Europe, They fell 0.66% to $85.98 per barrel. U.S. West Texas Intermediate crude oil is trading at $82.48 a barrel, down 0.72%.

The euro-dollar rises a small 0.07% against the dollar, setting the exchange rate at $1.0844 for each community currency.

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