Wall Street was divided on Monday between the drop in the S&P 500 (-0.31% to 5,447 pts) and the rise in the Dow Jones which gained 0.67% to 39,411 pts. The Nasdaq lost 1.09% to 17,496 pts, while Nvidia continued its correction (-6.6%) below $120 after having briefly exceeded $140 last week, becoming the first capitalization in the space of a day world… On the Nymex, a barrel of WTI crude is still gaining 0.5% to $81.65. The dollar index fell 0.3% against a basket of reference currencies. Bitcoin falls below $60,000 to $59,985.
In today’s economic news, the Dallas Fed’s manufacturing index for June 2024 stood at -15.1, compared to -14 consensus and -19.4 a month before. It therefore still reflects a clear contraction in manufacturing activity in the region considered. Governor Christopher Waller and San Francisco Fed President Mary Daly will speak today.
On Tuesday, traders will track the Chicago Fed’s National Activity Index, the S&P Case-Shiller and FHFA Home Price Indexes, the Conference Board’s Consumer Confidence Index, as well as the Bank’s Manufacturing Index. Richmond Fed. Michelle Bowman and Lisa Cook of the Fed will speak.
On Wednesday, markets will be paying attention to new home sales in the United States, as well as the Department of Energy’s weekly report on domestic oil stocks for the week ending June 21.
On Thursday, the economic program will be quite busy, with orders for durable goods, GDP for the first quarter (3rd estimate), the balance of international trade in goods, weekly unemployment claims for the week ending June 22, as well as wholesaler stocks or promises of housing sales.
Finally, on Friday, it will be necessary to monitor household income and spending for the month of May as well as the associated “core” inflation index, closely followed by the Fed, but also the Chicago PMI manufacturing index and the of American Consumer Sentiment from the University of Michigan. Thomas Barkin and Michelle Bowman of the Fed will also have their say.
In corporate news this week on Wall Street, FedEx (after market) and Carnival (before market) will publish their accounts on Tuesday. Micron (after the close), Paychex (pre-hours), General Mills (before the close), Jefferies Financial (pre-hours), Levi Strauss (before the open) and BlackBerry (after the close) will announce their results on Wednesday. Nike (after market), McCormick and Walgreens Boots Alliance will release Thursday…
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Nvidia (-6.6%) is partnering with Ooredoo to launch AI technology in the Middle East, reports Reuters. The American graphics processor and AI giant is therefore joining forces with Qatari telecommunications group Ooredoo to deploy AI technology in data centers in five Middle Eastern countries amid US export restrictions, Ooredoo’s chief executive told Reuters. This agreement makes Ooredoo the first in the region to offer Nvidia’s AI technology.
Broadcom (-3.7%) would work with ByteDance on the development of advanced AI processors, according to sources familiar with the matter cited by Reuters.
Apple (+0.3%) and Meta (+0.8%%) have discussed an AI partnership, according to Reuters. Citing people familiar with the matter, an agency report said Meta discussed integrating its generative AI model into Apple’s recently announced AI system for iPhones, and that Anthropic and Perplexity also discussed with Apple the use of their generative AI in Apple Intelligence, selling premium subscriptions to their services in the process.
Apple has also added Alibaba and JD to the list of applications available on its Vision Pro mixed reality headset in China, with the device going on sale on Friday. Bloomberg indicates that Taobao (Alibaba) will notably offer virtual driving tests for Xiaomi cars or even makeup tests on its application intended for the Californian group’s headphones. JD, for its part, launched a JD.Vision application which should help users virtually place products in their homes, with the help of an artificial intelligence chatbot.
Also in Apple news, App Store rules would violate EU standards by preventing app developers from directing consumers to alternative offerings, the European Commission said on Monday. Brussels said it had sent its preliminary findings to the tech giant, after an investigation launched in March. Apple’s indictment is the first issued by the Commission under its Digital Markets Regulation (DMA), aimed at limiting the power of large technology companies and ensuring a level playing field for smaller market players.
The Commission has until next March to make its final decision. A violation of the DMA regulation can lead to a fine of up to 10% of the annual global turnover of the company concerned.
