The stock market got off to a strong start to a historically strong month as investors looked to several important events scheduled for a holiday-shortened week. As a reminder, stock and bond markets closed early on Wednesday and will remain closed on Thursday for Independence Day.
This week, despite the market being closed for a day and a half. Economic Calendar Data for people to scrutinize. Today’s data includes the Institute for Supply Management’s Manufacturing Purchasing Managers’ Index (PMI)It fell to 48.5% in June from 48.7% in May. A reading below 50% indicates a contraction, and this is the 19th of 20 months that the index has fallen below 50.
“Manufacturing is a weak link in the economy in 2024.” Bill Adams“The Fed would like to see the economy continue to operate at a slower pace in the near term, and they believe continued weakness in manufacturing will help them achieve their goal of containing inflation,” said John McCain, chief economist at Comerica Bank.
apply Kiplinger’s Personal Finance
Become a smarter, more informed investor.
Up to 74% off
Sign up for Kiplinger’s free e-newsletter
Profit and prosper with the best expert advice on investing, taxes, retirement, personal finance and much more – straight to your e-mail.
Get the best expert advice straight to your email and start profiting and prospering.
Tomorrow, market participants will get the latest jobs data and sift through Federal Reserve Chairman Jerome Powell’s early morning speech. But the most notable Next Employment ReportIt will be released ahead of Friday’s release.
M&A Monday was in full swing
On the other hand, in terms of news on individual stocks, Boeing (BA, +2.6%) The aerospace company made headlines after making the announcement. Purchase of fuselage manufacturer Spirit AeroSystems (SPR, +3.4%) Equity valued at approximately $4.7 billion, or $37.25 per SPR share.
Analysts at UBS Global Research said the combination of the two aerospace companies was “a necessary step to gain the confidence of various stakeholders in the improved quality and safety of the MAX.” Gavin Parsons (Buy) said in a recent client note.
Peter McNallyMcNally, Third Bridge’s head of global analysts, doesn’t think the company will offer a quick fix to Boeing. “A key part of Spirit Airlines’ challenge is the shortage of skilled labor, a challenge that Boeing itself has faced for years,” McNally said. While the logic of consolidating supply chains makes sense, he added, “the reality could be more difficult as Boeing faces challenges in its own manufacturing and assembly operations.”
Black Rock (BLK, -0.6%) also drew attention to M&A after the world’s largest asset manager said it would buy private market data provider Preqin for about $3.2 billion in cash.
“The integration of Preqin, Aladdin and eFront will enable BLK to unify its private markets investment workflow with proprietary data across all aspects of private markets, including capital raising, deal sourcing, portfolio oversight, accounting and performance,” Jefferies analysts said. Daniel Fanon (buy).
Tesla surges after strong delivery update from Nio
But it was gains in a few large stocks that really drove the gains in the major stock indexes. Tesla Electric vehicle maker TSLA, for example, rose 6.1%, adding nearly $38 billion to its market capitalization, ahead of its monthly and quarterly delivery reports due tomorrow morning.
Today, the same EV manufacturer Nio (NIO, +6.7%) June delivery That nearly doubled from the same period last year to 21,209 units. The company also revealed that it delivered 57,373 vehicles in the second quarter, a 144% increase from the same period last year.
Some of Tesla’s associates 7 Great Stocks The day also ended with an upturn. apple (AAPL, +2.9%) Amazon (AMZN, +2.0%) NVIDIA (NVDA, +0.6%).
the result, Nasdaq Composite Index It increased 0.8% to 17,879; S&P 500 It rose 0.3% to 5,475. Dow Jones Industrial Average It rose 0.1% to 39,169.
Related content
