The DOW JONES was up 0.11% to 33,752 points, while the S&P 500 was up 0.29% to 4,341 points. The NASDAQ 100 rose 0.48% to 13,401 points.
These moves come after yesterday turned red on Wall Street. The Nasdaq Composite led the declines, down nearly 1.2%, as investors took profits in some technology stocks. Tesla fell 6%, while NVIDIA, Alphabet-A and Meta (Facebook) all fell more than 3%.
The S&P 500 closed around 0.5% lower, while the Dow closed almost flat but lower. was the sixth consecutive negative session for the Dow, the longest red line since September 2022.
Despite Monday’s decline, the S&P 500 and Nasdaq remain on track to climb more than 3% in late June, while the Dow is heading for a monthly gain of nearly 2.5%. Friday’s close marks the end of the second quarter and first half of 2023. The Nasdaq is up more than 9% for the quarter, while the S&P 500 and Dow are on track to end the period by more than 5 % to end. % and 1%, respectively
“It’s not uncommon for trends that have lasted throughout the quarter to reverse somewhat at the end,” said Scott Ladner, chief investment officer at Horizon Investments. This week, which marks the final days of the quarter and the first half of 2023, markets could see plenty of buying and selling as investors recalibrate their asset allocation.
On the macro agenda, investors already knew before the opening that Durable goods orders rose 1.7% in May, while the market expected the indicator to fall by 1%. Excluding transportation, they increased by 0.6% while a 0.1% decrease was forecast. Meanwhile, house prices rose 0.9% (seasonally adjusted) in April, or 1.7%, compared to the same month last year, according to S&P/Case Shiller.
Also released later this morning are the June Conference Board Consumer Confidence Index and May New Home Sales.
Meanwhile, central banks continue to demand their share of attention from central banks Sintra Forum (Portugal), organized by the European Central Bank (ECB). The first to open fire was ECB President Christine Lagarde, who insisted on a hawkish message, warning that interest rates were unlikely to hit a ceiling any time soon. The other prominent intervention of this appointment will take place tomorrow with the conference of Federal Reserve Chairman Jerome Powell.
On the bond markets, which are always very sensitive to changes in monetary policy, bond yields are currently rising slightly. The benchmark 10-year bond offers a yield of 3.7348% for a 1 basis point rise, while the benchmark 2-year bond offers a 2-point rise, yielding 4.6933%.
In the business field American stock investment life adds a gain of more than 5% after rising 10.9% yesterday. The agency Bloomberg has reported that the Canadian investment management company Brookfield is close to an acquisition agreement. The news comes after American Equity rejected a $45 stock offer from Prosperity backed by Elliot Management in December.
Today, Walgreens Boots also released its results, not only disappointing with its balance sheets, but also lowering its full-year guidance due to lower consumer spending and a slowdown in demand for vaccines and Covid-19 testing. Its shares fall 7%.
The pharmacy chain is lowering its full-year earnings guidance to a range of $4.00 to $4.05 per share, compared to its previous guidance of $4.45 to $4.65 per share. In its most recent quarter, the company reported adjusted earnings of $1.00 versus $1.07 expected. Revenue exceeded expectations at $35,420 million compared to $34,240 million predicted by the market.
The opposite is the case for airline Delta Air Lines, which is rising after raising its second-quarter forecasts on boom in travel demand. The company now expects earnings per share to be in the range of $2.25 to $2.50, down from the previous guidance of $2 to $2.25 per share.
Delta also notes that revenue for the period should rise 17-18% year over year, while adjusted earnings for the full year will be near the high end of the range.
In the pharmaceuticals sector, Eli Lilly & Co. was up 1.5%. The company on Monday released clinical results showing its investigational drug Retatrutid helps patients lose up to 24% of their weight after nearly a year.
In terms of analyst ratings, there is good news for Kellogg after Goldman Sachs upgraded its rating to buy. The company believes the famous grains company is “undervalued” compared to the potential growth opportunities it offers investors.
Another company investors should watch out for is Microsoft. The software company is targeting revenue of $500 billion in fiscal 2030, more than double its current size, CEO Satya Nadella said in a conversation with executives last year. The statements, which point to annual revenue growth of at least 10%, appear in a memo released Monday as part of Microsoft’s federal court hearing on its upcoming acquisition of Activision Blizzard.
In commodity markets, oil prices remain volatile, buoyed by Russian politics and possible supply disruptions, but weighed on by expectations of lower demand should central banks eventually trigger a recession.
“Oil prices are in the same range as they have been for almost two months and we continue to see that it fluctuates roughly between the upper and lower bounds,” says Craig Erlam, an analyst at OANDA. “I would say that the current price is nothing more than a reflection of the highly uncertain environment created by extremely intractable inflationary pressures and ever-changing interest rate expectations.”
A barrel of West Texas fell 0.83% to $69.14 in New York morning, while benchmark Brent fell 0.40% to $74.14 a barrel in Europe.
The euro is up 0.55% against the dollar today, giving an exchange rate of $1.0970 for each common currency.