4:05pm: Stocks sweeter
At the close, the Nasdaq led US stocks higher at 13,276 for a 0.3% increase, while the S&P 500 continued to flirt with bull market levels, closing 0.2% higher at 4,294 points. The Dow was the only laggard but still finished flat at 33,573.
Regional banks dominated the the list of best-performing stocks in the S&P 500, driven by Zions Bancorporation (ZION) and Comerica Incorporated (CMA).
The S&P 500, widely regarded as the benchmark index for US investors, experienced a significant surge to start the week, surpassing a 20% increase from its October lows. This upward momentum has led many investors to believe that the index has entered a new bull market.
While the S&P didn't manage to close above this threshold, upcoming days may see news headlines confirming this noteworthy achievement.
That said, stocks traded in low volatile ranges amid little economic data, said Axel Rudolph, Senior Market Analyst at online trading platform IG.
"Despite crypto stocks falling after the US regulator SEC sued Coinbase - down 15% since Monday - for breaking US securities rules, the Nasdaq 100 and other global equity markets hardly reacted and traded in low volatility ranges," the analyst noted.
12:05pm: S&P 500 near a nine-month high
US stocks were mixed in noon trading as the oil price fell and Apple Inc received an analyst downgrade.
At midday, the Dow lost 7 points to 33,556, while the S&P 500 added 12 points at 4,286 and the tech-heavy Nasdaq gained 73 points to 13,303.
“It really seems like we’re kind of in a holding pattern,” KKM Financial CEO Jeff Kilburg said.
“With the Fed next week, people are kind of taking a breath,” he added.
Notable movers included shares of Thor Industries Inc, which surged 15% after the RV manufacturer reported 3Q earnings and revenue that beat estimates and also increased its full-year profit guidance.
11:05pm: Small caps making moves
The Russell 2000 index has outperformed the S&P 500 since the beginning of the week. The index is up 2.1% on the day at 1,844 points.
Here's some small cap companies making moves today:
Recruiter.com Group, Inc. (NASDAQ:RCRT) stock flew after it signed a definitive agreement for a planned purchase of the fintech assets of GoLogiq, Inc, a US-based global provider of fintech and consumer data analytics. Shares of the US-based recruiting platform were up around 117% in early trading.
Anfield Energy Inc. (TSX-V:AEC, OTCQB:ANLDF) has entered a deal to buy enCore Energy Corp (TSX-V:EU, NYSE-A:EU)'s Marquez-Juan Tafoya uranium project in a move that will increase its uranium resource base by more than 60% and introduce enCore as a core shareholder.
9:55am: Apple's share movement reverberates
Shortly after the open, the Dow was down 48 points, 0.1%, to 33,515, the Nasdaq Composite fell 21 points to 13,217 and the S&P 500 declined 3 points to 4,270.
Apple shares are down more than 1% a day after the company unveiled its Apple Vision Pro, a spatial computer that merges digital content with the physical world. A company of that heft can move markets all on its own, said Keith Buchanan, senior portfolio manager at Globalt Investments.
“If you’re a $3-trillion company, the tail kind of wags the dog to an extent,” Buchanan said. “Apple, just given the sheer magnitude of its market cap, is going to have its way with most broader indices.”
7:55am: Recession looming?
US stocks are likely to start weaker on Tuesday as markets take a breather from a recent rally that pushed the S&P 500 to a nine-month high and digest the latest data that have increased fears about a recession.
Futures for the Dow Jones Industrial Average (DJIA) fell 0.1% in pre-market trading, while those for the broader S&P 500 index contracts for the Nasdaq-100 also declined close to 0.1%.
The main US indices ended lower on Monday after ISM services data for May came in lower than expected at 50.3 points and as Apple’s latest augmented reality innovation failed to impress.
After climbing to within a whisker of its all-time high, the iPhone maker’s shares turned around to finish down after the launch of its new virtual reality headset, Vision Pro.
That pushed the Nasdaq 0.2% lower to 13,229 points, while the DJIA shed 0.6% to 33,563 and the S&P 500 ended 0.2% down at 4,274 points after hitting its highest level since August 2022.
“US markets initially got off to a reasonably positive start but the disappointment over the May ISM services report tempered gains,” commented Michael Hewson, chief market analyst at CMC Markets. “The weak nature of the ISM services report was in sharp contrast to other service sector numbers, raising more questions, than answers about the strength of the US economy, ahead of next week’s Fed meeting.”
With US central bank officials now muzzled until after next week’s rate decision, Hewson said markets now must reassess whether the Fed pauses next week, or whether it hikes rates by another 25 basis points.
“The odds still favour a pause even more so after yesterday’s ISM report, however, we still have next week’s CPI numbers to contend with,” he added.
Contact the author at stephen.gunnion@proactiveinvestors.com