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%).
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
- Earnings Calendar and Analysis for This Week
- Want To Beat Stagflation? Invest Like It's the 1970s
- Is Investing In Gold Worth It? How Gold Prices Have Changed
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears EbbConstructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
What Trump’s 'Big Beautiful Bill' Means for Your Utility BillsIf passed, the 'Big Beautiful Bill' could make home energy upgrades more expensive and raise monthly costs. Here's how much more you might pay and how to prepare.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears Ebb
Constructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
The Six Pros This Adviser Says You Need to Sell Your BusinessSelling your business isn't as simple as getting the best price and walking away. These are the six professionals you'll need to get a deal across the finish line.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
