Stocks started a historically strong month on a positive note as investors looked ahead to several key events scheduled for the holiday-shortened week. As a reminder, the stock and bond markets will close early Wednesday and stay shuttered Thursday for the Fourth of July holiday.
Even with markets closed this week for a day and a half, there's a full economic calendar for folks to sift through. Today's data included the Institute for Supply Management's Manufacturing Purchasing Managers Index (PMI), which fell to 48.5% in June from May's 48.7% reading. Readings below 50% indicate contraction and this is the 19th month out of 20 that the index has arrived below 50.
"Manufacturing is a weak spot for the economy in 2024," says Bill Adams, chief economist for Comerica Bank. "The Fed wants the economy to keep running in low gear near term. They will see ongoing softness in manufacturing as contributing to their goal of less inflation."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
Tomorrow, market participants will get the latest job openings data and comb through an early morning speech from Federal Reserve Chair Jerome Powell. Most noteworthy, though, is the next jobs report, slated for release ahead of Friday's open.
M&A Monday was in full swing
Meanwhile, in single-stock news, Boeing (BA, +2.6%) made headlines after the aerospace company announced it's buying fuselage maker Spirit AeroSystems (SPR, +3.4%) for approximately $4.7 billion in stock, or $37.25 per SPR share.
The combination of the two aerospace firms "is a necessary step for a range of stakeholders to gain confidence in MAX quality and safety improvement," UBS Global Research analyst Gavin Parsons (Buy) said in a recent note to clients.
Peter McNally, global head of analysts at Third Bridge, doesn't think it will provide Boeing with a quick fix. "A meaningful part of the challenges at Spirit has been the lack of a skilled workforce – a challenge that Boeing itself has faced for years," McNally says. While the logic of integrating the supply chain is sound, he adds, "the reality could prove more challenging as Boeing has faced challenges in its own manufacturing and assembly operations."
BlackRock (BLK, -0.6%) was also in the M&A spotlight after the world's largest asset manager said it will acquire private markets data provider Preqin for approximately $3.2 billion in cash.
"The combination of Preqin with Aladdin and eFront will allow BLK to integrate private markets investment workflows with proprietary data that touches all aspects of private markets including fundraising, deal sourcing, portfolio monitoring, accounting, and performance," said Jefferies analyst Daniel Fannon (Buy).
Tesla pops after Nio's strong deliveries update
However, it was the upside in several mega-cap stocks that really fueled gains in the main indexes. Tesla (TSLA), for one, rose 6.1% – gaining nearly $38 billion in market value along the way – ahead of the electric vehicle maker's monthly and quarterly deliveries report, due out tomorrow morning.
Earlier today, fellow EV maker Nio (NIO, +6.7%) said June deliveries nearly doubled on a year-over-year basis to 21,209 vehicles. The company also revealed it delivered 57,373 vehicles in the second quarter, up 144% from the year-ago period.
Several of Tesla's fellow Magnificent 7 stocks also closed higher on the day, including Apple (AAPL, +2.9%), Amazon (AMZN, +2.0%) and Nvidia (NVDA, +0.6%).
As a result, the Nasdaq Composite rose 0.8% to 17,879 and the S&P 500 gained 0.3% to 5,475. The Dow Jones Industrial Average ended up 0.1% at 39,169.
Related content
- Chewy Becomes the Latest Stock Pick of Roaring Kitty
- Earnings Calendar and Analysis for This Week
- When Is Amazon Prime Day?
-
Quiz: How Well Do You Know Delaware Statutory Trusts?Quiz Real estate investing pro Daniel Goodwin recently wrote about Delaware statutory trusts for Adviser Intel. Find out if you understand how DSTs work.
-
S&P 500 Snaps Losing Streak Ahead of Nvidia Earnings: Stock Market TodayThe Dow Jones Industrial Average also closed higher for the first time in five days, while the Nasdaq Composite notched a win too.
-
S&P 500 Snaps Losing Streak Ahead of Nvidia Earnings: Stock Market Today
The Dow Jones Industrial Average also closed higher for the first time in five days, while the Nasdaq Composite notched a win too.
-
This HECM-QLAC Power Move Can Unlock Guaranteed Retirement IncomeCombining a qualified longevity annuity contract (QLAC) with a home equity conversion mortgage (HECM) can significantly boost your retirement income and more.
-
I'm a Financial Planner: Coast FI Planning Could Be High Earners' Secret Retirement Weapon in the AI AgeA subset of the FIRE movement, Coast FI can help executives figure out whether their investments are enough to 'coast' so they can retire early and comfortably.
-
Dow Trims Its Loss to 498 Points: Stock Market TodayMarkets are wondering more and more about returns on the enormous amounts of capital hyperscalers are investing in AI.
-
I'm a Financial Planner: To Beat Inflation and Build Wealth, This Is the Strategy You NeedIf you want to build long-term wealth, there's a tried-and-trusted strategy, and it starts with recognizing the inflation-busting power of equities.
-
I'm the CEO of a Credit Union: This Is What We Do to Earn Our Members' TrustWhat people want most from their financial institutions is a financial partner that listens, responds and acts with their best interests at heart.
-
Sharpening Your Focus: 'Hone' Authors on How Leaders Can Keep Their Businesses on TrackBusiness owners like this chef could learn valuable lessons from 'Hone,' including how caving in to pressure to quickly expand could lead to business 'drift.'
-
Dow Falls 557 Points to Start NVDA Week: Stock Market TodayThe Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
