The S&P 500 Index ($SPX) (SPY) this morning is up +0.10%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.31%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.11%.
US stocks this morning are slightly higher on lower bond yields and some positive corporate news. Incyte Corp is up more than +7% after announcing that its board approved a share repurchase authorization of $2 billion. Also, Intel is up more than +2% after the Wall Street Journal reported the company is in advanced talks for a deal in which Apollo Global Management would provide more than $11 billion to help the company build a chip plant in Ireland. In addition, Apple is up more than +1% after it was reported the company is closing in on an agreement to use OpenAI’s technology in its upcoming iOS 18 mobile operating system.
The markets will focus on US inflation reports this week. On Tuesday, the April core PPI is expected to ease to +2.3% y/y from +2.4% y/y in March. On Wednesday, April core CPI is expected to ease to +3.6% y/y from +3.8% y/y in March.
Generally positive Q1 earnings results are supportive for stocks. Q1 earnings are expected to climb +6.5% y/y, well above the pre-earnings season estimate of +3.8%. According to data compiled by Bloomberg Intelligence, about 81% of reporting S&P 500 companies have beaten Q1 earnings estimates.
The markets are discounting the chances for a -25 bp rate cut at 10% for the June 11-12 FOMC meeting and 32% for the following meeting on July 30-31.
Overseas stock markets today are lower. The Euro Stoxx 50 is down -0.31%. China's Shanghai Composite closed down -0.21%. Japan's Nikkei Stock Index fell to a 1-week low and closed down -0.13%.
Interest Rates
June 10-year T-notes (ZNM24) this morning are up +7 ticks. The 10-year T-note yield is down -2.8 bp at 4.469%. T-note prices have carryover support from strength in European government bonds. The main bearish factor is recent commentary by Fed officials that reduced expectations for Fed rate cuts. T-note prices are also being undercut by caution ahead of this week’s US PPI and CPI reports.
European government bond yields today are lower. The 10-year German bund yield is down -2.5 bp to 2.492%. The 10-year UK gilt yield is down -2.4 bp to 4.142%.
US Stock Movers
Incyte Corp (INCY) is up more than +7% to lead gainers in the S&P 500 after announcing that its board approved a share repurchase authorization of $2 billion.
Apple (AAPL) is up more than +1% after it was reported the company is closing in on an agreement to use OpenAI’s technology in Apple’s upcoming iOS 18 mobile operating system.
Gaming stocks with exposure to Macau are climbing today after China added eight mainland cities eligible for “individual travel” to Hong Kong and Macau from May 27. As a result, Wynn Resorts International (WYNN), Las Vegas Sands (LVS), MGM Resorts International (MGM), and Caesars Entertainment (CZR) are up more than +1%.
Intel (INTC) is up more than +2% to lead gainers in the Dow Jones Industrials after the Wall Street Journal reported the company is in advanced talks for a deal in which Apollo Global Management would provide more than $11 billion to help the company build a chip plant in Ireland.
Squarespace (SQSP) is up more than +13% after entering into a definitive agreement to go private by Permira in a deal valued at approximately $6.9 billion, where stockholders will receive $44 per share in cash.
BioLife Solutions (BLFS) is up more than +5% after Benchmark Company LC upgraded the stock to buy from hold with a price target of $25.
Corbus Pharmaceutical Holding (CRBP) is up more than +4% after RBC Capital Markets initiated coverage of the stock with a buy rating and a price target of $77.
Alphabet (GOOGL) is down more than -2% after Apple said it is closing in on an agreement to use OpenAI’s technology on the iPhone.
Meta Platforms (META) is down more than -2% to lead losers in the Nadaq 100 after a research arm of the UAE government released Falcon 2 11B, a more powerful AI model that will challenge Meta Platforms' open-source AI model.
MKS Instruments (MKSI) is down more than -6% after announcing that it plans to offer $1.0 billion of convertible senior notes due 2030.
Applied Materials (AMAT) is down more than -1% after Jeffries downgraded the stock to hold from buy.
Earnings Reports (5/13/2024)
ACELYRIN Inc (SLRN), Agilysys Inc (AGYS), Akoustis Technologies Inc (AKTS), Akoya Biosciences Inc (AKYA), Allogene Therapeutics Inc (ALLO), Avita Medical Inc (RCEL), BioVie Inc (BIVI), Boston Omaha Corp (BOC), Caledonia Mining Corp PLC (CMCL), Cara Therapeutics Inc (CARA), Citius Pharmaceuticals Inc (CTXR), Fortrea Holdings Inc (FTRE), Harrow Inc (HROW), Infinera Corp (INFN), NCR Atleos Corp (NATL), Ocean Biomedical Inc (OCEA), Orchestra BioMed Holdings Inc (OBIO), Paysafe Ltd (PSFE), Sanara Medtech Inc (SMTI), Southland Holdings Inc (SLND), StoneCo Ltd (STNE), Terawulf Inc (WULF), Theravance Biopharma Inc (TBPH), Urban One Inc (UONEK), UroGen Pharma Ltd (URGN), Verrica Pharmaceuticals Inc (VRCA), Voyager Therapeutics Inc (VYGR).
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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