Dow Jones Today: Major Indexes Higher as Stocks Look to ...
Major U.S. indexes were solidly higher in early afternoon trading Monday as stocks looked to rebound from their worst week of the year.
The S&P 500 and Nasdaq Composite were 1.1% and 1% higher, while the Dow Jones Industrial Average added 1.3%. Stocks tumbled on Friday after the August jobs report showed a continued weakening of the labor market. Technology stocks led the downturn on Friday, sending the Nasdaq Composite to its worst week since January 2022.
Mega-cap tech stocks were mixed on Monday, with AI investor favorite Nvidia (NVDA) up more than 2%, while Microsoft (MSFT), Meta Platforms (META) and Amazon (AMZN) also gained ground. Apple (AAPL) was down about 0.4% ahead of a major product launch later Monday that is expected to include the new iPhone 16 with AI capabilities, while Alphabet (GOOGL) was down about 1%.
Chip stocks, which fell sharply on Friday, were on the rise Monday. The VanEck Semiconductor ETF (SMH) was up nearly 2%, as Arm Holdings (ARM), Qualcomm (QCOM) and Intel (INTC) advanced.
Boeing (BA) shares were up nearly 4%, leading Dow gainers, after the aircraft manufacturer reached a tentative agreement with two of its unions, potentially averting a strike. Shares of big data analytics company Palantir (PLTR) and Dell (DELL) were up 13% and 5%, respectively, following news late Friday that the companies will be included in the S&P 500 as of Sept. 23.
The economic data calendar is light on Monday, ahead of the release later in the week of inflation data that will be closely monitored by the Federal Reserve as it considers cutting the influential fed funds rate for the first time in four years. Fed Chair Jerome Powell and other central bank officials have signaled that rate cuts could come as soon as the Sept. 18 meeting of the central bank's policy committee, but they've stressed that incoming data will drive the decisions on the pace and depth of the easing.
Market participants are now pricing in a 27% chance that the Fed will cut the benchmark interest rate by half a percentage point next week, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data. The likelihood of a half-point cut had surged to over 50% on Friday after the weaker-than-expected August employment report, before falling throughout the course of the trading session.
The yield on 10-year Treasurys, which is sensitive to expectations around interest rates, was little changed at around 3.71% on Monday. The yield had dropped as low as 3.65% after the jobs report on Friday, its lowest level in more than a year.
Gold futures were up slightly on Monday at around $2,530 an ounce, while bitcoin also nudged higher to around $55,500.
Apple Expected to Unveil iPhone With AI Capabilities
1 hr 55 min ago
Apple's (AAPL) "It’s Glowtime" event will kick off at 1 p.m. ET Monday, with the company widely expected to unveil the iPhone 16 supercharged with artificial intelligence (AI) capabilities. Investors will also likely be watching for pricing and hardware differences in the new iPhone compared to previous models, and possible next-generation wearable products like AirPods and the Apple Watch.
AI-supercharged Siri is likely to be a key focus, with Apple's announcement for the event displaying the company's logo in the style of the glowing aura of Apple's Siri interface.
Apple announced its newest operating system, iOS 18, and Apple Intelligence, at its developer conference in June, where the company said the intelligent system will help Siri understand more natural speech patterns, use personal context from on-device content, and accept typed prompts, among other AI-powered capabilities.
Read the full preview here.
Summit Therapeutics Soars on Drug Trial News
2 hr 24 min ago
Shares of Summit Therapeutics (SMMT) skyrocketed Monday, rising to an all-time high after the biotech announced positive results from a late-stage trial of its experimental lung cancer treatment.
Summit said the Phase-3 study, conducted in China, showed the drug ivonescimab ”demonstrated a statistically significant improvement in the trial’s primary endpoint” for certain patients with locally advanced or metastatic non-small cell lung cancer.
The company said that ivonescimab reduced the risk of disease progression or death by 49% compared to other treatments.
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Summit Therapeutics shares were up nearly 50% in recent trading.
-Bill McColl
Palantir Jumps on News of S&P 500 Inclusion
4 hr 16 min ago
Palantir (PLTR) shares jumped in premarket trading Monday following news that the big data analytics software company will join the benchmark S&P 500 index, with the inclusion taking effect before the market opens on Sept. 23.
The stock temporarily broke down below an ascending triangle last month, but promptly reversed above the pattern's top trendline to form a bear trap.
Palantir shares were up 8% at $32.75 in recent premarket trading.
Source: TradingView.com.Investors should monitor key overhead chart levels in Palantir shares at $32.70 and $34.75, while eyeing important retracement levels at $29 and $25.50.
Read our full technical analysis piece here.
-Timothy Smith
Boeing Stock Surges After Union Deal
4 hr 50 min ago
Boeing (BA) shares jumped in premarket trading Monday, a day after the plane maker announced a tentative agreement with two of its largest labor union partners.
The deal would see roughly 33,000 Boeing employees across Washington, Oregon, and California get raises of 25% over the next four years, along with other benefits like a revamped retirement savings program and parental leave, the company announced Sunday.
The International Association of Machinists and Aerospace Workers members covered by the deal are set to vote on whether to ratify the four-year contract Thursday, when the current deal is set to expire. A strike could have started once the previous deal expired, halting production at a number of facilities.
Boeing 737 MAX aircraft are assembled at the Boeing Renton Factory in Renton, Washington, on June 25, 2024.JENNIFER BUCHANAN / POOL / AFP via Getty Images
Boeing shares were 4.5% higher about two hours before the opening bell Monday, but are still down nearly 37% since the start of 2024 amid a series of safety issues and executive changes.
-Aaron McDade
Futures Point to Higher Open for Major Indexes
5 hr 4 min ago
Futures tied to the Dow Jones Industrial Average were up 0.7%.
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S&P 500 futures were also up 0.7%.
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Nasdaq 100 futures were up 0.9%.
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