US Market Minutes: Apple Reclaims Top Spot with Market Cap Nearing $3.5 Trillion, S&P 500 Hits 35th Record High of the Year
M+ Global Updates 09/07/2024 08:58

On Monday, the three major U.S. stock indices were mixed, with the S&P 500 and Nasdaq both closing at record highs, while the Dow Jones declined.

Indices Movement (9 July)

At the close, the S&P 500 index rose 0.10% to 5,572.85 points, marking its fifth consecutive daily gain and the 35th record close of the year.

Nasdaq Composite Index gained 0.28% to 18,403.74 points, also hitting a record high with a five-day winning streak.

Dow Jones Industrial Average fell 0.08% to 39,344.79 points.

Macro Updates

Signs of easing inflation in the U.S. have increased market expectations for Federal Reserve rate cuts, pushing the S&P 500 to rise in four of the past five weeks. Traders currently expect two rate cuts from the Fed this year, with the first likely in September.

Data from the U.S. Department of Labor last Friday showed an increase of 206,000 non-farm jobs in June, exceeding the economists' expectation of 190,000, though the figures for the previous two months were significantly revised down. Additionally, the unemployment rate and wage growth indicated a balancing job market.

UBS strategist Vincent Heaney wrote, "We believe that solid economic fundamentals, robust earnings growth, Fed rate cut expectations, and increased AI investments continue to favor U.S. stocks."

Oppenheimer Asset Management Managing Director and Chief Market Strategist John Stoltzfus also stated that economic and earnings outlooks will support higher stock valuations, raising his year-end target for the S&P 500 to 5,900 points.

Nationwide Investment Research Director Mark Hackett advised investors to prepare for some volatility as the earnings season begins this week. However, he noted that the market might rebound if some companies resume buybacks.

Morgan Stanley Chief Investment Officer Mike Wilson warned that traders should prepare for a stock market pullback due to uncertainties in corporate earnings, Fed policies, and presidential campaigns, predicting a volatile third quarter.

Performance of Popular Stocks

Major tech stocks were mixed, with Apple rising 0.65% $Apple Inc. AAPL$ for the fifth consecutive record close, with a market cap nearing $3.5 trillion, reclaiming the top spot in the U.S. stock market from Microsoft. Apple supplier Corning $Corning Incorporated GLW$ surged 11.99%, also hitting a new high and leading the S&P 500 components.

Industry sources previously indicated that Apple has raised its stock target for the iPhone 16 series this year to about 90 million units. During the 618 shopping festival, Apple's sales significantly increased, likely boosting expectations for iPhone 16 series sales.

Microsoft $Microsoft Corporation MSFT$ fell 0.28%, Nvidia $NVIDIA Corporation NVDA$ rose 1.88%, Google $Alphabet Inc. Class C GOOG$ dropped 0.77%, Amazon fell 0.36%, and Meta Platforms declined 1.96%.

The Philadelphia Semiconductor Index rose 1.93% to a new high, with only Micron Technology declining among its components.

Leading gainers included Intel $Intel Corporation INTC$ (+6.15%), AMD (+3.95%), Marvell Technology $Marvell Technology Group Ltd. MRVL$ (+3.93%), Wolfspeed (+2.86%), Coherent (+2.67%), and Broadcom (+2.50%). TSMC $Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR TSM$ rose 1.43% and ASML $ASML Holding NV ADR ASML$ increased 0.27%, both reaching new highs.

Tesla $Tesla Motors, Inc. TSLA$ rose 0.56%, achieving a nine-day winning streak with a market cap above $800 billion.

AMD, $Advanced Micro Devices, Inc. AMD$ regarded as a "Nvidia concept stock," rose 6.23%, ranking second among S&P 500 components, only behind Corning mentioned earlier.

Chinese Stocks

The Nasdaq Golden Dragon China Index fell 1.05% to 5,842.25 points.

Most popular Chinese stocks declined, with Futu Holdings down 7.40%, XPeng down 5.93%, NIO down 3.46%, TAL Education down 2.05%, Alibaba down 1.37%, Li Auto down 1.32%, Baidu down 1.15%, Pinduoduo down 1.11%, down 1.08%, New Oriental down 0.58%, Tencent Music down 0.14%, and Bilibili up 2.43%.

Company News

From Microsoft to Qualcomm: Tech Companies Drive New "AI PC" Marketing Trend

From Microsoft $Microsoft Corporation MSFT$ to Qualcomm $QUALCOMM Incorporated QCOM$ , tech companies are launching a new marketing trend for computers called "AI PC," promising that their laptops and desktops will feature built-in AI capabilities. These new laptops differ from standard devices by adding an extra processor designed to accelerate AI features such as personal assistants and automated tasks.

However, according to industry research firm International Data Corporation (IDC), only 3% of PCs shipped this year meet Microsoft's AI capability threshold. To persuade consumers and businesses to buy now, the industry will need to offer a wider variety of PCs and software that can fully utilize the new hardware.

Devon Energy to Acquire GraysonMill Energy's Williston Basin Assets for $5 Billion

Devon Energy $Devon Energy Corporation DVN$ agreed to acquire EnCap Investments LP's GraysonMill Energy's Williston Basin operations for $5 billion, marking ongoing consolidation in the U.S. oil industry.

Devon Energy stated in a press release that it will pay $3.25 billion in cash and $1.75 billion in stock for the oil assets. Devon plans to finance the first part with cash on hand and debt. The transaction is expected to be completed by the end of the third quarter.

FAA Orders Inspection of 2,600 Boeing 737 Aircraft Over Oxygen Mask Failure Issue

The U.S. Federal Aviation Administration (FAA) on July 8 ordered inspections of 2,600 Boeing $Boeing Company BA$ 737 aircraft, citing potential failures of passenger oxygen masks in emergencies.

The FAA said it received multiple reports of displaced passenger service unit oxygen generators and mandated inspections of Boeing 737 MAX and 737 "Next Generation" (737NG) aircraft. The issue could prevent supplemental oxygen from being provided to passengers during decompression.

United Airlines Boeing 757 Loses Tire During Takeoff

United Airlines $United Continental Holdings, Inc. UAL$ confirmed that on July 8, a Boeing 757 lost a tire during takeoff from Los Angeles International Airport. There were no reports of material damage or injuries.

United Airlines said the tire has been found and an investigation is underway. The incident flight had 174 passengers and 7 crew members on board and left LAX at around 7:15 a.m. on July 8, en route to Denver. Unlike a similar incident in March, the pilots continued the flight to Denver and landed safely.


The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.

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