Traders work on the floor of the New York Stock Exchange during morning trading on May 24, 2024 in New York City.
Michael M. Santiago | Getty Images
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Treasury yields weigh on Wall Street
of S&P 500 Ended a three-day winning streak Despite rising government bond yields, NVIDIAThe tech giant’s shares have been climbing since reporting earnings last week. Nasdaq Composite Index Protects against drops. Dow Jones Industrial Average Insurance companies also fell by 400 points. UnitedHealth This resulted in losses. The yield on the 10-year bond was Ministry of Finance Treasuries rose for a second straight day after a lackluster bond auction on Tuesday. Rising yields could curb consumer spending and make Treasuries and money market funds more attractive than stocks. Oil prices I also slipped.
Salesforce plummets
of stocks Salesforce Falling by over 17% Expanded deal as successor to cloud software company Reports lower-than-expected revenue The company also issued current-quarter profit and sales guidance that fell short of analysts’ expectations.
Peltz sells Disney shares
Activist investor Nelson Peltz All shares were sold in DisneyAccording to a person familiar with the matter, in early April, Peltz lost the proxy fight Peltz, who left Disney to select Chief Financial Officer Jay Rasulo and himself to the board, has long taken issue with Disney’s governance, particularly the company’s streaming strategy and failed succession planning for Chief Executive Bob Iger.
Shale expansion
ConocoPhillips Agreed to purchase Marathon Oil in $17.1 billion worth of stock transactionsThe acquisition adds 2 billion barrels of resources to ConocoPhillips’ portfolio and expands the company’s reach into shale fields in Texas, New Mexico and North Dakota. ConocoPhillips CEO Ryan Lance said the acquisition will be immediately accretive to ConocoPhillips’ earnings, cash flow and shareholder returns when the transaction closes in the fourth quarter.
American sales strategy backfires
of stocks American Airlines Shares fell more than 13% after Chief Executive Robert Isom said the airline would cut passenger numbers later this year, a day after it parted ways with Chief Commercial Officer Vas Raja. It lowered its revenue and profit forecasts.Raja led a plan to encourage more people to book directly with airlines instead of through third-party sites and travel agents, a strategy that included dismantling airline sales departments. Raja is due to leave the company next month.
[PRO] Summer business
The Dow, S&P 500 and Nasdaq all hit record highs in May, but the question is whether that momentum can continue through June and August. Brian Evans, CNBC Examining historical data We will also share what to expect from the market and which sectors typically perform best.
The world is a messy place at times. Just when it seemed on the cusp of an energy transition, a multibillion-dollar shale deal shatters that environmental paradise. ConocoPhillips Buy Marathon Oil The $17 billion deal will expand the company’s portfolio and give it a market capitalization larger than BP’s, said Andrew Dittmer, M&A analyst at Enverus.
No amount of federal aid for the energy transition through Biden’s $369 billion Inflation Countermeasures Act and Infrastructure Investment and Jobs Act will end our dependence on oil anytime soon.
Toyota, which has been reluctant to introduce fully electric vehicles, New Hybrid Engine On Tuesday it unveiled an EV that can use biofuel to meet stricter emissions standards. Japanese automakers are not the only ones relying on hybrids as EV sales stagnate due to range anxiety and a lack of charging infrastructure.
Meanwhile, Chinese automakers BYD has introduced a hybrid engine With a full battery and gasoline load, it can travel 2,100 kilometers (1,300 miles).
The Conoco deal failed to buoy the market, which is under pressure from rising Treasury yields after hitting record highs. With earnings season almost over, the focus has shifted back to the Fed, the economy and inflation.
“We’re seeing a lot of growth in the space,” Atlas Merchant Capital CEO Bob Diamond said on “Squawk on the Street.” The Fed “wants a weak economy” 25 basis points is not an issue before lowering interest rates. [points] It’s there for signaling purposes. I don’t think the Fed or FOMC are going to risk fueling inflation.”
While the market is on pace to finish the month on a high, Chris Senyek, chief investment strategist at Wolfe Research, expects trading to slow significantly.The waves get rough in summerHe suggests sticking to large tech stocks, which have risen more than 13% this month, outperforming every other sector in the S&P 500. Nvidia alone rose more than 30% in May.
“If our predictions prove correct and trading becomes choppy, we believe investors will likely stick with what has worked so far this year,” Senyec wrote. “In other words, our view is that ‘Mag7’, Secular Growers and Momentum stocks will perform well through the summer.”
— CNBC’s Alex Harring, Pia Singh, Spencer Kimball, Sara Salinas, Scott Wapner, Jordan Novett and Leslie Josephs contributed to this report.
