Market Overview
Today's trade was somewhat mixed despite a solid showing at the index level. The market-cap weighted S&P 500 extended its record high, climbing 0.8%, and the equal-weighted S&P 500 registered a 0.7% gain. Decliners had a slim lead over advancers at both the NYSE and the Nasdaq. The underlying negative bias, driven by consolidation activity, was not enough to offset buying activity in some mega cap stocks.
Mega Cap Stocks
Outsized gains in Apple (AAPL 216.67, +4.18, +2.0%) and Microsoft (MSFT 448.37, +5.80, +1.3%) provided some support to the broader market. These two stocks are among the three with a market cap above $3 trillion. The Vanguard Mega Cap Growth ETF (MGK) was up 0.9%.
Semiconductor Performance
Broadcom (AVGO 1828.87, +93.83, +5.4%) was another top performer today, along with other semiconductor-related names. The PHLX Semiconductor Index (SOX) jumped 1.6%.
Sectors Performance
Strength in the mega cap and semiconductor spaces boosted the S&P 500 information technology (+1.2%) and consumer discretionary (+1.4%) sectors to the top of the leaderboard today. These sectors combined comprise 43% of the index.
The rate-sensitive real estate (-0.8%) and utilities (-0.5%) sectors were the top laggards, clipped by a jump in yields. The 10-yr note yield closed seven basis points higher at 4.28% and the 2-yr note yield settled eight basis points higher at 4.76%.
Economic Data
Today's economic data was limited to the NY Fed Empire State Manufacturing Index, which rose to -6.0 in June (consensus -13.0) from -15.6 in May.
Year-to-Date Performance
- Nasdaq Composite: +19.0% YTD
- S&P 500: +14.8% YTD
- S&P Midcap 400: +5.0% YTD
- Dow Jones Industrial Average: +2.9% YTD
- Russell 2000: -0.3% YTD
Looking Ahead
Tuesday's economic calendar features the May Retail Sales report at 8:30 ET. Other data include:
Today's News
Elon Musk revealed on social media that Tesla (TSLA, Financial) is working on Master Plan 4, which he described as "epic." Previous master plans have been pivotal in shaping Tesla's long-term strategy, including the development of the Roadster, Model S/X, Model 3/Y, and the acquisition of SolarCity. This announcement continues to fuel the bullish outlook on Tesla's future.
Mustang Bio (MBIO, Financial) saw its shares skyrocket by 580% after reporting positive data from a Phase 1/2 trial for its CAR-T cell therapy MB-106. The treatment showed a 90% overall response rate in patients with Waldenstrom macroglobulinemia, a type of non-Hodgkin lymphoma. The company highlighted the feasibility of outpatient administration and noted the lack of FDA-approved CAR-T treatments for this condition.
Cheniere Energy (LNG, Financial) announced a 15% increase in its quarterly dividend, raising it to $2.00 per share annualized, alongside a $4 billion boost in its share repurchase authorization through 2027. The company aims to return significant capital to shareholders while maintaining investment-grade credit metrics, projecting over $20 per share in run-rate distributable cash flow.
Berkshire Hathaway's (BRK.A, BRK.B) BNSF Railway was ordered to pay nearly $400 million to the Swinomish Tribe for trespassing by running 100-car trains carrying crude oil through its reservation, violating a 1991 easement agreement. The tribe had sued BNSF in 2015 after the railway increased the number of cars without consent.
Warner Bros. Discovery (WBD, Financial) shares declined for the seventh consecutive day, closing down 0.97% at $7.17. The stock has underperformed significantly over the past year, falling 47.5%. Analysts have mixed ratings on the company, with some recommending a Strong Buy and others advising a Hold.
McDonald's Corporation (MCD, Financial) announced it will end its AI drive-thru technology test run, which was active in over 100 restaurants in partnership with IBM (IBM). The company cited the need to explore voice ordering solutions more broadly, despite some successes with the current initiative.
Nvidia (NVDA, Financial) convinced the U.S. Supreme Court to hear an argument to dismiss a six-year-old securities fraud lawsuit. The suit, led by a Sweden-based investment firm, alleges Nvidia misled investors about the volume of sales related to cryptocurrency mining. The case will be heard in the next Supreme Court term.
Palantir Technologies (PLTR, Financial) received a Buy rating and a $29 target price from Argus. The company, known for its software platforms aiding counterterrorism, has expanded into the commercial sector. Analysts expect its commercial business, particularly in the U.S., to drive future growth.
A federal judge ordered Berkshire Hathaway's (BRK.A, BRK.B) BNSF Railway to pay nearly $400 million to the Swinomish Tribe for running crude oil trains through its reservation without consent, violating a 1991 easement agreement. The tribe had sued BNSF in 2015 after the railway increased the number of cars traveling through the reservation.
Shares of Tesla (TSLA, Financial) rose 5.45% after the company received approval to test its advanced driver-assistance system on some Shanghai streets. Tesla also filed a complaint against Matthews International for allegedly stealing trade secrets related to its battery production technology.
Albemarle (ALB, Financial), American Airlines Group (AAL), and Charter Communications (CHTR) were identified as the most shorted S&P 500 stocks in May. Albemarle saw a significant increase in short interest, while American Airlines retained its position as the most shorted stock in the industrial sector.
A federal judge ordered Berkshire Hathaway's (BRK.A, BRK.B) BNSF Railway to pay nearly $400 million to the Swinomish Tribe for running crude oil trains through its reservation without consent, violating a 1991 easement agreement. The tribe had sued BNSF in 2015 after the railway increased the number of cars traveling through the reservation.
BrightSpire Capital (BRSP) declared a quarterly dividend of $0.20 per share, maintaining its previous payout. The dividend will be payable on July 15 to shareholders of record as of June 28.
A federal judge ordered Berkshire Hathaway's (BRK.A, BRK.B) BNSF Railway to pay nearly $400 million to the Swinomish Tribe for running crude oil trains through its reservation without consent, violating a 1991 easement agreement. The tribe had sued BNSF in 2015 after the railway increased the number of cars traveling through the reservation.
SoFi Technologies (SOFI, Financial) saw its stock fall 5% after the Qatar Investment Authority sold its entire 19.8 million share stake. Meanwhile, SoFi CEO Anthony Noto acquired 30,715 shares, bringing his total holdings to 8.12 million shares.
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