Yahoo Finance S&P, Nasdaq Notch New Closing Highs Ahead of CPI, Fed
Tuesday, June 11th, 2024
The markets started slow out of the gate, but largely made up for it. In fact, both the Nasdaq and the S&P 500 notched yet another all-time closing high this Tuesday — ahead of tomorrow’s all-important Inflation Rate number and the latest Fed meeting. Apparently, market participants are not quite as reliant on good news from the Fed as some may have thought. The Dow fell -120 points today, -0.31%, but the S&P gained +0.27% to 5375, the Nasdaq was up +151 points, +0.88%, to 17,343. The small-cap Russell 2000 dropped another -0.37%.
Apple AAPL played a role in both historic high indices. Following its presentation yesterday at the Worldwide Developers Conference (WWDC), in which the iPhone maker announced several upgrades incorporating A.I. services via assistance from companies like OpenAI and ChatGPT, and building out offerings from Apple like Vision Pro. Shares shot through the $200 per share threshold with ease today, closing up +7.2% on the session to roughly $207 per share.
Meanwhile, the Dow and Russell find themselves hampered. Financial companies appear to be on the wane in today’s market — likely at least partially due to a stagnant Fed, as we’ll see tomorrow afternoon when interest rates stay put at 5.25-5.50% — and companies like JPMorgan JPM and Goldman Sachs GS on the Dow and a plethora of regional banks on the small-cap Russell find themselves affected. Financials as a sector today slipped -1%.
Oracle ORCL saw an end to its six-quarter positive earnings surprise streak. Reporting fiscal Q4 results after today’s close saw earnings of $1.63 per share missing the Zacks consensus by a penny or revenues of $14.29 billion, which missed the $14.55 billion anticipated. Yet, much like Apple, Oracle rolled out two major partnerships in A.I.: Alphabet’s GOOGL Google multi-cloud partnership for app migration and another OpenAI deal, utilizing Oracle cloud infrastructure. Shares traded up +5% on the news, despite to the top and bottom-line misses.
Tomorrow’s Consumer Price Index (CPI) report for May will play a part in Wednesday’s market trajectories. Month-over-month headline CPI is expected to come down to +0.1% from +0.3% a month ago. Year over year headline CPI, aka the Inflation Rate, is expected to remain steady at +3.4%. Core CPI on a month-over-month basis, stripping out volatile food and energy prices, is currently projected in-line with April at +0.3%, year over year to come down 10 bps to +3.5%.
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