There appears to be some post-holiday lethargy in the equity futures market, yet there is some lively action in two stocks that matter more than most. That would be NVIDIA (NVDA) and Apple (AAPL).
NVIDIA is up 3% on continued AI enthusiasm that was infused by a report that Elon Musk’s xAI raised $6 billion and that most of that capital will be deployed to NVIDIA for its AI chips. Apple for its part is up 1.4% on a Bloomberg report that smartphone shipments in China were up 52% in April, driven by discounting from retailers.
These two stocks are carrying the load for the broader market, which is coming off a mixed performance last week.
Currently, the S&P 500 futures are up six points and are trading 0.1% above fair value, the Nasdaq 100 futures are up 32 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are down 49 points and are trading 0.1% below fair value.
Those indications point to a relatively mixed start for the major indices, which will be eyeing interest rates today and the results of a $69 billion 2-yr note auction at 11:30 a.m. ET and a $70 billion 5-yr note sale at 1:00 p.m. ET.
Treasuries are sitting tight in front of those auctions, underpinned by some geopolitical angst following an Israeli missile strike on Rafah over the weekend that killed dozens of people and which Prime Minister Netanyahu called a “tragic error.”
The 2-yr note yield is down three basis points to 4.92% and the 10-yr note yield is down one basis point to 4.46%. WTI crude futures are up 1.7% to $79.06/bbl.
Other news catching the market’s eye is T-Mobile’s (TMUS) announcement that it is going to acquire substantially all of US Cellular’s (USM) wireless operations for approximately $4.4 billion in cash and assumed debt, a 22% gain in GameStop (GME) after the company completed a previously disclosed at-the-market stock offering that raised approximately $933.4 million, and a budget plan in Illinois that proposed a significant tax increase on sports betting.
Those story stock items will be interwoven in today’s trading narrative with some economic data that includes the March FHFA Housing Price Index (prior 1.2%) and March S&P Case-Shiller Home Price Index (Briefing.com consensus 7.0%; prior 7.3%) at 9:00 a.m. ET, and the May Consumer Confidence Index (Briefing.com consensus 96.0; prior 97.0) at 10:00 a.m. ET.
The economic event of the week, however, will be the release of the April Personal Income and Spending Report on Friday, which includes the core-PCE Price Index, otherwise known as the Fed’s preferred inflation gauge.
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Originally Posted May 28, 2024 – Mixing it up on other side of holiday
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