Stock Market Today: Stocks Close Higher Ahead of Fed, May CPI
Monday was a quiet session for the main indexes but this week's Fed meeting and a key inflation update could create fireworks.
![blue stock market chart with teal bars going up](https://cdn.mos.cms.futurecdn.net/AKxEPEDAN94ESZqwGazTya-415-80.jpg)
Stocks opened lower Monday but climbed into positive territory by the close. Investors' attention this week is trained on Wednesday's release of the May Consumer Price Index (CPI) report and the conclusion of the Fed meeting.
Today, though, the economic calendar was bare, so market participants turned to a raft of single-stock headlines hitting the wires.
Most notable was news that cybersecurity stock CrowdStrike (CRWD, +7.3), private equity firm KKR (KKR, +11.2%) and web domain firm GoDaddy (GDDY, +1.9%) will be joining the S&P 500 later this month. The trio will replace staffing company Robert Half (RHI, +1.5%), regional bank Comerica (CMA, -1.7%) and genetic sequencing firm Illumina (ILMN, -3.4%).
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Stocks tend to get a lift from inclusion in the S&P 500 because many trillions of passive dollars are held in products that track the index," wrote Dan Burrows, senior investing writer at Kiplinger, in his coverage of the three stocks' inclusion in the S&P 500. "The bottom line is that loads and loads of passive funds and ETFs now have to pick up shares in CRWD, KKR and GDDY."
Noble to buy Diamond Offshore Drilling for $1.6 billion
Noble (NE) stock rose 6.1% after the oil drilling company agreed to buy Diamond Offshore Drilling (DO) for $1.6 billion in cash and stock, or $15.52 per DO share. DO, meanwhile, jumped 10.9%.
Noble's bid for Diamond continues a busy stretch of merger-and-acquisition (M&A) news in the oil patch that started last fall when Exxon Mobil (XOM, +0.3%) unveiled its $60 billion bid for Pioneer Natural Resources.
More recently, ConocoPhillips (COP, +1.2%) said it will buy Marathon Oil (MRO, +1.5%) for $17.1 billion.
Elliott takes a massive stake in Southwest Airlines
Southwest Airlines (LUV) stock was another big mover Monday, rallying 7.0% on news activist investor Elliott Investment Management accumulated a nearly $2 billion stake. According to The Wall Street Journal, Elliott plans to push for changes to reverse recent underperformance by the airline, including replacing current CEO Bob Jordan and overhauling the board of directors.
"The approach of an activist investor in Southwest Airlines is interesting at this juncture given that the company is investing capital to improve operations and lower costs," says Peter McNally, global sector lead for industrials, materials and energy at Third Bridge. "At least for the time being, it is hard to see what new strategy Southwest could pursue given that future growth is dependent on Boeing (BA, -0.06%) delivering more planes."
Apple tumbles on the first day of WWDC 2024
Apple (AAPL) stock slumped 1.9% – making it the worst Dow Jones stock today – as investors took in the first day of announcements from the company's annual Worldwide Developers Conference (WWDC).
Particularly noteworthy were the onslaught of artificial intelligence (AI) initiatives Apple unveiled. In addition to Apple Intelligence, its suite of AI offerings for its devices, the company also said it is teaming up with OpenAI to offer a ChatGPT function for its personal assistant Siri.
This year's WWDC is a key event for Apple "as the pressure to bring a generative AI stack of technology for developers and consumers is front and center with Cook & Co. set to make history for Cupertino," says Wedbush analyst Daniel Ives (Outperform, the equivalent of a Buy). "We believe AI technology being introduced into the Apple ecosystem will bring ample monetization opportunities on both the services as well as iPhone and hardware front."
Despite AAPL's down day, the Dow Jones Industrial Average rose 0.2% to 38,868 on strength in retailers Home Depot (HD, +1.7%) and Walmart (WMT, +1.6%). The S&P 500 added 0.3% to 5,360, while the Nasdaq Composite gained 0.4% to 17,192.
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Eight Key Steps to Take When Investing in the Stock Market
The stock market can be a confusing place for beginners, but it doesn't have to be.
By Kiplinger Advisor Collective Published
-
Confused by Annuities? Making Sense of the Different Types
Many investors aren't sure if annuities are a good option for meeting financial goals. Let's look at the different categories, along with their pros and cons.
By Kris Maksimovich, AIF®, CRPC®, CPFA®, CRC® Published
-
Stock Market Today: Stocks Slip Ahead of Mega-Cap Earnings
GE Aerospace shares soared after earnings while United Parcel Service stock slumped.
By Karee Venema Published
-
Is GE Stock Still a Buy After Big Earnings Beat?
GE stock is higher Tuesday after the industrial giant's beat-and-raise quarter, but what do analysts think? We take a closer look here.
By Joey Solitro Published
-
UPS Stock Heads Toward Worst Day Ever After Earnings
UPS stock is down big after coming up short of analysts’ expectations for its second quarter and cutting its outlook. Here’s what you need to know.
By Joey Solitro Published
-
Spotify Stock Surges After Q2 Earnings Beat: What to Know
Spotify stock is flying higher Tuesday after the streaming giant reported its second-quarter earnings results. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Mega-Cap Tech Rallies to Drag Markets Higher
Markets focused on upcoming earnings from Magnificent 7 stocks rather than chaos in D.C.
By Dan Burrows Published
-
Stock Market Today: Stocks Tumble After Spectacular Global Internet Crash
Market participants rushed out of risk assets to end a wild week of trading.
By Dan Burrows Published
-
Stock Market Today: Dow Sinks 533 Points as Big Banks, Mega Caps Slump
Goldman Sachs and Apple were two of the worst-performing blue chip stocks on Thursday.
By Karee Venema Published
-
Paris Olympics: 5 Sports-Related Stocks Going for Gold
Tactical investors may want to keep an eye on these sports-related stocks as the countdown to the Paris Olympics begins.
By Jeff Reeves Published