Stocks opened higher Monday but quickly turned choppy as investors looked ahead to a busy week of inflation updates. Today's economic calendar was relatively quiet, though, which had market participants parsing several single-stock headlines. Among the highlights, Nvidia (NVDA) continued to bounce, and Starbucks (SBUX) found itself the target of not one but two activist investors.
At the close, the Dow Jones Industrial Average was down 0.4% at 39,357. The S&P 500 eked out a fractional gain to 5,344, while the tech-heavy Nasdaq Composite added 0.2% to 16,780 on strength in a number of semiconductor stocks.
Nvidia was the best of the bunch, surging 4.1%. Since last Monday's broad-market meltdown, NVDA stock is up 8.5% to regain $211 billion in market value. Advanced Micro Devices (AMD, +1.9%) and Micron Technology (MU, +1.7%) also gained ground.
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.
Starbucks pops on activist investor news
Starbucks was another notable gainer Monday, rising 2.6% on reports Elliott Management wants its managing partner, Jesse Cohn, to join the coffee chain's board of directors. The firm has built a roughly $2 billion stake in Starbucks, but it's not the only activist investor with its eyes on the large-cap stock. Indeed, according to a late-Friday report in The Wall Street Journal, Starboard Value has also taken a position in SBUX.
Even with today's pop, though, SBUX remains 20% lower for the year to date, pressured in part by disappointing earnings. In its most recent print, Starbucks disclosed a 3% year-over-year drop in same-store sales and a 7% decline in earnings per share.
Bank of Nova Scotia to invest $2.8 billion in KeyCorp
However, KeyCorp (KEY) was the best S&P 500 stock today, jumping 9.1% on news Bank of Nova Scotia (BNS, -3.6%) will invest roughly $2.8 billion in the Cleveland-based lender, equivalent to a 14.9% stake.
The minority investment allows KEY to "raise capital on attractive terms," said KeyCorp CEO Chris Gorman in a press release. It will give the company a "greater capacity for growth" and increase its strategic agility amid an uncertain environment.
As a result of the news, CFRA Research analyst Alexander Yokum upgraded KEY to Hold from Sell. "We have a positive view of the investment as shares of KEY have been bogged down over the past few years by large unrealized losses in the bank's securities portfolio," he writes in a note. "Following the investment, KEY will be well positioned to reposition its securities portfolio, thus improving the bank's net interest income outlook."
Most analysts are already bullish on the financial stock. Of the 20 analysts following KEY that are tracked by S&P Global Market Intelligence, eight say it's a Strong Buy, five have it at Buy and seven call it a Hold. This works out to a consensus Buy recommendation.
Inflation data, blue chip earnings on deck
Looking ahead, inflation data will be top of mind for investors. While tomorrow morning's release of the July Producer Price Index (PPI), which measures the change in wholesale prices, will certainly draw attention, the most widely followed measure of inflation – the Consumer Price Index (CPI) – will be released Wednesday morning.
Mark Hackett, chief of investment research at Nationwide, says the next CPI report and earnings from blue chip retailer Walmart (WMT, +1.1%) – due out Thursday morning – "will be crucial in determining the direction of investor sentiment. A quarter ago, retail earnings were the first to sound the alarm on the consumer, gradually leading to a shift in investors' outlook from 'Goldilocks' to a recession."
Hackett adds that it would not be surprising "to see potentially overblown reactions" to this week's inflation data and retail earnings "given the heightened emotional responses in the market recently."
Related content
- The Fed Is About to Cut Rates. What Should Investors Do?
- All 30 Dow Jones Stocks Ranked: Buy, Sell or Hold?
- Earnings Calendar and Analysis for This Week
-
I’m Over 65 and Itemize: Can I Claim the New $6,000 ‘Senior Bonus’ Tax Deduction?Tax Changes If you’re an older adult, a new bonus deduction could provide a valuable tax benefit.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to KnowGOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to Know
GOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
7 Mistakes to Avoid When You First Start InvestingInvesting brings the opportunity to build wealth, but there are plenty of mistakes that can be made. Here are seven common ones and how they can be avoided.
-
A Fidelity Fund Misses Out on Soaring Bank StocksThe Fidelity International Growth Fund has outperformed over the long term, but its lagging exposure to bank stocks has weighed on more recent returns.
-
More Than Money: The Hidden Toll of Financial Abuse of Older AdultsFinancial abuse from schemes involving tech support, government impostors, false sweepstakes, grandchild hoaxes and online shopping issues can cause thousands of dollars in losses.
-
I'm a Financial Planner: Here Are Three High-Impact Ways to Make a Difference With Your DollarsThe world often feels out of control, but here are three ways to use your money — through investments, charitable giving and political donations — to help create a more just and sustainable future.
-
Stocks Slide to Start September: Stock Market TodaySeasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Where is the Foreign Dividend Boom Headed?It's been a golden six months for foreign dividend stocks, but can any be relied on for predictable income going forward? Here are some options.
