Apple Lifts Nasdaq, S&P 500 to Records; Dow Lags Ahead of CPI

Stock Indexes Wrap: Apple, Big Tech Boost Nasdaq; Financials Sink Under Weight of Fed Uncertainty

4 hr 8 min ago

The Dow

Apple (AAPL) soared 7.3%, its biggest one-day jump since November 2022, to close at a record high as analysts delivered their assessments of yesterday’s WWDC keynote, in which the iPhone maker unveiled Apple Intelligence, its custom intelligence system. 

Microsoft (MSFT) advanced 1.1% amid questions about the consequences of Apple’s new partnership with OpenAI, in which Microsoft has invested billions of dollars.

Boeing (BA) fell 2.5% after the company reported deliveries and orders tumbled in May. 

The S&P 500

General Motors (GM) rose 1.4% after its board authorized a $6 billion share buyback program.

Tech and communications giants Meta (META) and Alphabet (GOOGL) advanced 1% and 0.8%, respectively. 

Eli Lilly (LLY) inched up 0.1% after an FDA advisory panel late yesterday unanimously recommended the approval of its Alzheimer’s drug donanemab. 

Paramount Global (PARA) tumbled 7.9% amid reports Shari Redstone, who owns a controlling stake in the entertainment company, had ended months-long merger talks with Skydance Media. 

Financial stocks trailed the broader market amid substantial uncertainty about the outlook for monetary policy heading into Wednesday’s Fed decision and inflation report. State Street (STT) tumbled 4.3%, while Citigroup (C) lost 3.7% and American Express (AXP) slumped 3.3%. 

Tesla (TSLA) fell 1.8% ahead of the company’s annual shareholder meeting on Thursday when investors will vote on whether to reinstate Elon Musk’s $56 billion pay package, which was struck down by a Delaware court earlier this year.

The Nasdaq 100

CrowdStrike (CRWD) rose 2.7%, continuing to climb after last week’s strong earnings report and its inclusion in the S&P 500. 

PayPal (PYPL) slid 3.5% as investors digested yesterday’s Apple Pay updates, including Apple’s announcement it would integrate buy now, pay later provider Affirm (AFRM) with Apple Pay. 

Starbucks (SBUX) slid 2.1% as it rolled out its “Pairings Menu,” joining the growing list of fast food chains emphasizing value to attract cash-strapped customers. 

Strong Treasury Auction Spurs Bond Rally

5 hr 26 min ago

Treasury yields declined sharply Tuesday after a surprisingly strong auction of 10-year Treasury notes. 

The highest yield on a 10-year note auctioned by the U.S. Treasury on Tuesday was 4.438%, about 3 basis points below the yield of 10-year notes trading on secondary markets when the auction results were published. That caused the 10-year yield to drop sharply to 4.43%, where it held for about 30 minutes before continuing to tick down to about 4.41%.

The yield on Treasury bills, notes, and bonds moves inversely to their prices. On Tuesday, debt with a par value of $100 sold for $99.49, the highest auction price for a 10-year note since January when interest rates were higher and the equivalent note sold for $103.82. Tuesday’s auction, thus, reflected surprisingly strong demand for fresh U.S. debt.  

The results were all the more surprising given tomorrow’s CPI report and interest rate decision from the Federal Reserve, both of which could drive big moves in the bond market.  

Tuesday’s bond rally erased some of the damage done by last week’s strong jobs report, which raised doubts about the path of monetary policy and caused bond yields to jump. 

Affirm Stock Gets a Lift From Apple Pay Inclusion

6 hr 14 min ago

Affirm Holdings (AFRM) shares jumped Tuesday after Apple (AAPL) announced the company’s buy now, pay later (BNPL) loans would be available for Apple Pay users.

In an email sent to Investopedia, Affirm said, “We’re excited to share that US users checking out online or in-app with Apple Pay on iPhone and iPad will be able to apply to pay over time for eligible transactions with Affirm. This provides users with additional payment choices, and offers the ease, convenience and security of Apple Pay.” The company noted that it would be providing more details in the future. 

Affirm said in a Securities and Exchange Commission (SEC) filing that it “does not expect this partnership to have a material impact on revenue or gross merchandise volume in fiscal year 2025.”

Shares of Affirm Holdings rose more than 6% in intraday trading on Tuesday but were still 33% lower in 2024.

–Bill McColl

Apple Stock Hits Record High on Anticipation of AI-Fueled Growth

7 hr 5 min ago

Apple (AAPL) shares rose to a record high in intraday trading Tuesday, a day after the iPhone maker held its long-anticipated Worldwide Developers Conference (WWDC) keynote.

Shares were up more than 6% Tuesday afternoon, bringing the stock’s year-to-date return to about 7%.

The iPhone maker kicked off WWDC with the announcement of its latest operating system, iOS 18, and Apple Intelligence, a personal intelligence system that uses content on each user’s device as context to provide personalized intelligent assistance. Apple also announced a partnership with Microsoft-backed (MSFT) OpenAI to integrate ChatGPT into iOS 18 later this year.

JPMorgan analysts said, “Apple’s keynote at WWDC showcased enough enhancements on the feature sets across native apps and third-party apps with integration of A(pple) I(ntelligence) to assure us of the expected upgrade cycle with the launch of the iPhone 16 and release of iOS18 in the fall of this year.”

See here for more on what analysts are saying about Apple’s foray into AI.

–Naomi Buchanan

Boeing Slumps as Orders, Deliveries Tumbled in May

7 hr 54 min ago

Boeing (BA) shares slumped on Tuesday after the jet maker reported deliveries fell by more than half in May compared with the year before, as the firm continued to grapple with the fallout of January’s door plug blowout. 

Boeing delivered 24 planes last month, down from 50 in May 2023. Nineteen of those aircraft were 737 MAX jets, three more than in April but 16 fewer than the prior year. The 737 MAX is Boeing’s best-selling plane, but the Federal Aviation Administration (FAA) in January barred the company from increasing production of the model.

Boeing’s order volume has also declined significantly from last year. The company received just one order for four jets in May, down from orders for 69 planes a year ago. Its backlog declined to 5,625 from 5,646 in April.

Meanwhile, Airbus (EADSY), Boeing’s largest competitor, delivered 53 planes last month and received orders for 27.

Boeing shares were down nearly 4% in early afternoon trading. They have lost nearly 30% of their value so far this year.

Correction—June 11, 2024: This entry has been updated to correct the size of Boeing’s order backlog.

Academy Sports + Outdoors Results Hit as Economic Pressure Affects Shoppers

8 hr 36 min ago

Shares of Academy Sports + Outdoors (ASO) fell Tuesday after the sporting goods and outdoor recreation gear retailer posted worse-than-expected quarterly results as it said its shoppers faced tough times financially.

The company reported first-quarter adjusted earnings per share (EPS) of $1.08 and revenue of $1.36 billion, down 1.4% year-over-year. Both missed forecasts. Comparable store sales slumped 5.7%.

Academy added two new stores in the period, and has plans to open 15 to 17 in 2024. The company said last quarter it targeted 160 to 180 new locations over the next five years.

Academy noted that it had repurchased $124 million in stock during the first quarter, and because of that it raised its full-year EPS to a range of $6.05 to $7.05 from the previous estimate of $5.90 to $6.90. 

Academy Sports + Outdoors shares fell almost 7% and are down about 24% this year.

–Bill McColl

GM Rises After Another Stock Buyback

9 hr 16 min ago

General Motors (GM) shares advanced Tuesday after the biggest U.S. automaker announced its second stock buyback in seven months. 

GM said its board had approved up to $6 billion in share repurchases, which will kick in after money from the current program is exhausted, which is expected at the end of the month.

In November, GM declared a $10 billion accelerated stock buyback, which was added to the $1.4 billion left from the previous one. GM intends to make a total of $1.4 billion in repurchases in the first half of 2024.

No timetable was given for when the new plan will end.

GM shares rose 2% and are up 35% this year.

–Bill McColl

Stocks Making the Biggest Moves in Early Trading 

10 hr 31 min ago

Gains:

Apple (AAPL): Shares rose more than 2%, retracing yesterday’s losses that came after the iPhone maker unveiled its Apple Intelligence, its custom artificial intelligence system, and a plan to integrate ChatGPT into its devices. 

Spotify Technology (SPOT): Shares rose almost 1% on a Bloomberg report that the music streaming provider plans to introduce a new premium plan, charging users at least $5 more per month.

General Motors (GM): Shares rose 1% after the automaker announced that its board had approved a new stock buyback program worth up to $6 billion.

Losses:

Robinhood (HOOD): Shares of the trading app are down 4% as the price of bitcoin (BTCUSD) dips below $67,000 Tuesday morning after bitcoin exchange-traded funds (ETFs) saw net outflows for the first time in 19 days. Crypto exchange Coinbase (COIN) was down 5%, while the Grayscale Bitcoin Trust ETF (GBTC) fell almost 4%.

Stock Futures Fall

11 hr 28 min ago

Dow futures were down 0.4% in premarket trading Tuesday.

S&P futures were down 0.3%.

Nasdaq futures were down 0.3%.