Apple (AAPL) is holding its highly anticipated Worldwide Developers Conference (WWDC) today, with investors awaiting announcements about the iPhone maker’s artificial intelligence (AI) initiatives and potential partnerships. GameStop (GME) shares are rising in premarket trading after a volatile Friday that included multiple trading halts and meme stock influencer Keith Gill’s first livestream of the company in three years. Southwest Airlines (LUV) shares are soaring after reports that activist fund Elliott Investment Management has taken a nearly $2 billion stake in the struggling airline. AI darling Nvidia (NVDA) shares are down slightly after the market closed on Friday as the company issued a 10-for-1 stock split. Shares of private equity firm KKR (KKR), cybersecurity company CrowdStrike Holdings (CRWD) and domain registrar GoDaddy (GDDY) are rising after S&P Dow Jones Indices said they will be added to the S&P 500 index at the market open on June 24. U.S. stock futures are falling after the better-than-expected jobs report was released on Friday. Here’s what investors need to know today.
1. Highly anticipated conference to focus on Apple’s iPhone AI strategy and potential partnerships
Apple’s (AAPL) highly anticipated Worldwide Developers Conference (WWDC) kicks off today, and investors are paying close attention to updates on the iPhone maker’s artificial intelligence (AI) initiatives that could impact the company’s stock price. Analysts expect Apple, a latecomer in the AI ​​race, to unveil its latest operating system, iOS 18, demo generative AI features built into its apps, and comment on recent reports of potential partnerships with Microsoft (MSFT)-backed OpenAI and Alphabet (GOOGL)-owned Google. Such a partnership could speed up iPhone upgrade cycles. As the second-most valuable company in the U.S. after Microsoft, Apple’s market cap exceeds $3 trillion and it is heavily weighted in both the S&P 500 and the Nasdaq 100, so any movement in its stock price could have an impact on the broader market. Apple shares are up slightly in premarket trading on Monday.
2. GameStop Rise After Multiple Trading Halts Last Week
GameStop Corp. (GME) shares are up about 8% in premarket trading after a rough finish last week with multiple trading halts following social media meme stock influencer Keith Gill’s first livestream in three years, disappointing first-quarter earnings and plans to issue additional shares. GameStop shares have continued to be volatile since regaining momentum last month after Gill (aka “Roaring Kitty”) posted on social media for the first time in three years about the retailer. The stock surged more than sixfold from late April to mid-May before plummeting about 70% over eight trading sessions as investors rushed to take profits.
3. Southwest Airlines soars after reports Elliott will take nearly $2 billion in stock
Southwest Airlines (LUV) shares rose 7% in premarket trading after reports that Elliott Investment Management has acquired a nearly $2 billion stake in the company and plans to push for changes to bolster the airline’s struggling stock price. An activist hedge fund that is one of Southwest Airlines’ largest investors “plans to negotiate with management” of the airline, the company said in a statement. The Wall Street Journalnoted that Elliott has a history of forcing companies in which it has stakes to restructure or sell. Southwest Airlines shares, which traded at about $60 a share three years ago, closed at $27.75 on Friday. The airline missed profit expectations amid delays to plane deliveries from Boeing (BA). Boeing is still dealing with the fallout from a January accident in which a door plug on a Boeing-built plane came off in mid-air, sparking an investigation by regulators and law enforcement.
4. Nvidia falls after 10-for-1 stock split
Nvidia (NVDA) shares are down slightly in premarket trading after a 1-for-10 stock split took effect after the close on Friday. Nvidia’s common stock has risen tenfold, making it more affordable for retail investors from previously trading at more than $1,200 a share. Shares of the chip designer that has dominated the AI ​​boom have soared, and on Wednesday its market capitalization topped the $3 trillion threshold held by only Microsoft and Apple. Nvidia said last month that “sovereign AI” — a country’s ability to produce AI using its own infrastructure and data — is driving demand for its chips.
5. KKR, CrowdStrike, and GoDaddy surge as they enter the S&P 500
Shares of private equity firm KKR (KKR), cybersecurity company CrowdStrike Holdings (CRWD) and domain registrar GoDaddy (GDDY) are rising in premarket trading after S&P Dow Jones Indices said Friday that the three companies are set to join the S&P 500 Index when the market opens on June 24. KKR rose 8%, CrowdStrike rose 5% and Go Daddy rose 3%. S&P Dow Jones Indices said, “Each addition to the S&P 500 is more representative of the large-cap market.” The three companies replace human resources consulting firm Robert Half (RHI), Texas bank Comerica (CMA), and genetic analysis company Illumina (ILMN), all of which have seen their shares fall.
