Technology stocks drive market higher with positive earnings results and M&A activity.

From Nasdaq: 2024-06-03 11:32:55

Stocks are mostly higher today, with the S&P 500 up +0.38% and the Nasdaq 100 up +0.64%. Nvidia announced new AI chips, and M&A activity saw Waste Management buying Stericycle for $5.8 billion. Chinese manufacturing data showed growth, and the markets await the US ISM manufacturing index and ECB meeting. The Fed is expected to keep rates on hold, with positive Q1 earnings supporting stocks.

Interest rates saw 10-year T-notes up +9 ticks, with Eurozone government bond yields moving lower. Germany’s bund yield is down -5.2 bp. Swaps predict a high chance of a -25 bp rate cut at the ECB meeting. US stock movers include Autodesk up over +8% and Stericycle up more than +14% post-acquisition by Waste Management. Salesforce and MongoDB lead gainers, while Boston Beer and Target struggle.

Earnings reports today include Gitlab Inc and Science Applications International. NVIDIA is up more than +4% after announcing new AI chips, while Waste Management’s acquisition of Stericycle led the latter’s stock up more than +14%. Autodesk surged over +8%, Salesforce up more than +2%, while Boston Beer fell more than -7% due to acquisition claims. Science Applications International reported below-consensus Q1 adjusted EPS, leading its stock down more than -6%. Target faced a down of more than -2% post-coverage initiation by BNP Paribas Exane. Pinnacle West Capital went down more than -1% after announcing plans for convertible senior notes offer. Cava Group faced a down of more than -1% due to a downgrade by JPMorgan Chase.



Read more at Nasdaq: Strength in Technology Stocks Lifts the Overall Market