July 24th, 2024

Stock market today: Wall Street drifts in early trading as Nvidia slips more more

By Zimo Zhong And Matt Ott, The Associated Press on June 24, 2024.

NEW YORK (AP) – U.S. stock indexes are drifting in mixed trading as Nvidia regresses a bit more. The S&P 500 was flat in the early going Monday, still near its record set last week. The Dow Jones Industrial Average was up 89 points, and the Nasdaq composite was down 0.1%. Nvidia has been pulling back since the AI chip company briefly overtook Microsoft to become Wall Street’s most valuable company last week. It’s coming off its first losing week in the last nine. RXO jumped 13.7% after agreeing to buy the Coyote Logistics freight brokerage business from UPS. Treasury yields held steady.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Wall Street was poised to open with gains on Monday in what’s expected to be a fairly quiet week, with just a couple market-moving economic releases and a handful of notable corporate earnings reports.

Futures for the Dow Jones Industrial Average rose 0.3% before the bell and futures for the S&P 500 ticked up 0.1%.

Shares of Apple were unchanged after the European Union leveled their first charges under its new digital competition rulebook. EU regulators are accusing Apple of preventing app makers from pointing users to cheaper options outside its App Store. The company could face fines worth up to 10% of its global revenue, which could amount to billions of euros, or daily penalties.

Under Armour shares fell 1.6% before the bell after the shoe and athletic wear company agreed to settle charges that CEO Kevin Plank hid faltering performance from investors. Under Armour, which denied wrongdoing, will pay $434 million to settle the class actions suit brought by investors.

The most important economic data coming this week is an inflation reading from the government’s consumer spending report out Friday. The PCE index is the Federal Reserve’s preferred measure of inflation and carries significant weight when the central bank considers its interest rate policy.

The Fed cranked up its benchmark lending rate after the economy rebounded during the pandemic as demand and other factors sent prices soaring. Fed officials are trying to slow the economy through high interest rates to get stubborn inflation back down to its 2% target without tipping the economy into a recession.

While most analysts still expect a rate cut this year, that’s far fewer than the handful of cuts they had been projecting.

The other notable report this week is the Conference Board’s June consumer confidence report coming on Tuesday.

Companies reporting earnings this week include Carnival Cruise Line, FedEx, Walgreens and Nike.

In the bond market, U.S. Treasury yields initially fell after a report suggested business activity among countries that use the euro currency is weaker than economists expected. Concerns are already high for the continent ahead of a French election that could further rattle financial markets.

The weak business-activity report dragged down yields in Europe, which at first pressured Treasury yields. But U.S. yields recovered much of those losses after another report said later in the morning that U.S. business activity may be stronger than thought.

Overall output growth hit a 26-month high, according to S&P Global’s preliminary reading of activity among U.S. manufacturing and services businesses. Perhaps more importantly for Wall Street, that strength may be happening without a concurrent rise in pressure on inflation.

In Europe at midday, France’s CAC 40 added 0.7%, Germany’s DAX advanced 0.9% and Britain’s FTSE 100 was 0.5% higher.

In Tokyo, the Nikkei 225 index rose 0.5% to 38,804.65, making it the sole major benchmark in Asia to post gains on Monday.

The yen weakened to 159.49 to the dollar. The dollar closed at 159.77 yen on Friday.

Minutes of the Japanese central bank’s last policy meeting released Monday put the yen under renewed pressure as it indicated that “Any change in the policy interest rate should be considered only after economic indicators confirm that, for example, the CPI inflation rate has clearly started to rebound and medium-to long-term inflation expectations have risen.”

Meanwhile, it was reported that Masato Kanda, a vice minister of the Japanese Finance Ministry, said officials were prepared to intervene to support the currency at any time.

Elsewhere in Asia, Hong Kong’s Hang Seng fell less than 0.1% to 18,027.71, while the Shanghai Composite lost 1.2% to 2,963.10.

Australia’s S&P/ASX 200 dipped 0.8% to 7,733.70. South Korea’s Kospi shed 0.7% to 2,764.73.

In other dealings Monday, U.S. benchmark crude oil rose 33 cents to $81.06 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude added 39 cents to $84.72 per barrel.

The euro rose to $1.0733 from $1.0693.

On Friday, the S&P 500 slipped 0.2% to 5,464.62, but it remained close to its all-time high set on Tuesday and capped its eighth winning week in the last nine. The Dow Jones Industrial Average edged up less than 0.1% to 39,150.33, while the Nasdaq composite dropped 0.2% to 17,689.36.

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