US stocks tread water after S&P 500’s record close

US stocks held regular on Wednesday after a record S&P 500 close, with investors eyeing fresh economic data and Federal Reserve minutes for tips to rate cuts in a holiday-shortened session.

The S&P 500 (^GSPC) traded flat after the benchmark ended Tuesday above 5,500 for the primary time. The tech-heavy Nasdaq Composite (^IXIC) was also little modified, while the Dow Jones Industrial Average (^DJI) edged up 0.2%.

Stocks were muted ahead of an early close (1 p.m. ET) to trading on Wednesday and in addition ahead of the stock market’s shutdown on Thursday to mark the Independence Day holiday.

The S&P 500 and Nasdaq Composite hit fresh record closes after Jerome Powell touted progress on cooling inflation. That cemented hopes for an interest-rate cut at the same time as the Fed chair once more signaled an absence of urgency to act. Traders are pricing in 65% odds of a move lower in September, in keeping with CME’s FedWatch tool.

Meanwhile, job creation slowed for a 3rd straight month with the US adding just 150,000 latest private sector jobs in June, below the 165,000 Wall Street had expected. Pay gains for each job stayers and job changers also slowed.

The information comes just ahead of the key June jobs report release on Friday. Also on deck are data on services activity and factory orders, watched for further signs of economic slowing that would prompt policymakers to act.

In corporates, Paramount Global (PARA) shares climbed about 8% in early trading on reports Skydance Media has reached a deal that offers it a controlling stake within the entertainment giant.

Meanwhile, Tesla (TSLA) shares rose greater than 2% on the heels of a ten% surge Tuesday after the EV maker posted deliveries that beat Wall Street estimates.

Live2 updates

  • S&P 500, Nasdaq open flat

    US stocks traded mostly flat on Wednesday ahead of an early close (1 p.m. ET) to trading and a market shutdown on Thursday.

    The S&P 500 (^GSPC) hugged the flatline after the benchmark ended Tuesday above 5,500 for the primary time. The tech-heavy Nasdaq Composite (^IXIC) was also little modified, while the Dow Jones Industrial Average (^DJI) edged up 0.2%.

  • Why Tesla’s stock hasn’t fallen like a rock in water

    Tesla’s (TSLA) delivery numbers were bad.

    Yet, the stock rallied 10% on Tuesday because the figures were above estimates. The stock is up one other 3.5% within the pre-market.

    Head-scratching!

    I feel Guggenheim analyst Ron Jewsikow — who continues to be super bearish on Tesla — nicely explains what we’re seeing within the Tesla motion:

    “Looking ahead – production cuts, share losses in China and tariffs in Europe all set a negative backdrop for deliveries within the second half. That said, the prevailing sentiment in our conversations with investors is an absence of desire to be short ahead of the robotaxi event. The main target now shifts to 2Q EPS, full self driving take rate details and the 8/8 robotaxi event.”

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