| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39806.77 | -196.82 | -0.49% |
| S&P 500 | 5308.13 | 4.86 | 0.09% |
| Nasdaq | 16794.87 | 108.91 | 0.65% |
| VIX | 12.15 | 0.16 | 1.33% |
| Gold | 2432.60 | -6.50 | -0.28% |
| Oil | 79.65 | -0.15 | -0.19% |
US MARKET
Technology stocks led the Nasdaq Composite to a new high on Monday as investors bet on strong U.S. consumer spending and interest-rate cuts.
The Nasdaq Composite rose 0.7% to 16794.87, breaking its record set last Wednesday after a Labor Department report showed easing inflation. The S&P 500 added 0.1%, while the Dow Jones Industrial Average fell 0.5%, or 197 points, from Friday’s record close.
Norwegian Cruise Line Holdings surged 7.6%, leading the S&P 500, after raising profit expectations and giving an optimistic presentation. Royal Caribbean and Carnival also gained 4.1% and 7.3%, respectively. CFO Mark Kempa noted strong bookings and spending by well-off customers.
Investors await quarterly reports from retailers like Lowe’s, Macy’s, AutoZone, and Urban Outfitters on Tuesday to gauge consumer spending. Nathan Kotler from GenTrust emphasized the importance of U.S. consumer behavior in market trends. Despite high interest rates benefiting wealthier consumers, higher borrowing costs are impacting lower-income Americans, said Joe Salmond of Thornburg Investment Management.
On Wednesday, investors will analyze existing-home sales data and Federal Open Market Committee minutes for interest rate clues. Nvidia, central to the AI boom, will report its latest results; its shares rose 2.5% on Monday and are up 91% this year.
The PHLX Semiconductor Index climbed 2.2%, with Micron Technology up 3% and Applied Materials up 3.7%. Netflix gained 3.2% to its highest price since 2021. Insurer Chubb fell 3.7% after a recent rise due to Warren Buffett’s Berkshire Hathaway buying a large stake.
LOCAL MARKET
Australian shares are set to dip at the open after a mixed session on Wall Street, with ASX futures down 11 points, or 0.1%, to 7879 as of 7:30 am AEST. On Monday, the S&P/ASX 200 rose 0.6%, closing just 33 points shy of its record high.
Investors await the Reserve Bank’s May policy meeting minutes and the Westpac-Melbourne Institute Consumer Sentiment report. Weaker jobs and wages data have led to speculation of possible rate cuts by Christmas.
Telstra plans to cut up to 2,800 jobs and reiterated its FY 2024 guidance, whilst Sonic Healthcare flagged lower-than-expected profit due to inflation and currency headwinds. TechOne reported a 16% rise in first-half profit.
James Hardie reported a 17% increase in net income. ALS saw a 96% drop in net profit due to write-downs and restructuring costs.
SkyCity Casino reached an agreement with New Zealand’s government on AML compliance. Mineral Resources delivered its first ore shipment ahead of schedule. Rio Tinto declared force majeure on Australian alumina cargoes due to a gas shortage in Queensland.