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Posted June 3, 2024 at 9:30 am
NVIDIA (NVDA) and Adv. Micro Devices (AMD) announced new AI chips. Treasury yields are lower. “Roaring Kitty” posted a screenshot showing a big position (common stock and call options) in GameStop (GME). Any guesses which way the broader market is leaning this morning?
If you guessed higher, you’d be right. If you guessed the Nasdaq 100 futures would be outperforming, then you’d be more right.
Currently, the S&P 500 futures are up 11 points and are trading 0.3% above fair value, the Nasdaq 100 futures are up 92 points and are trading 0.5% above fair value, and the Dow Jones Industrial Average futures are down four points and are trading roughly in-line with fair value.
NVIDIA is setting the pace for the broader market with a 3% gain. Meanwhile, GameStop is setting the pace for the meme stocks with a 70% gain.
These are both story stocks today, as is Waste Management (WM) which is acquiring Stericycle (SRCL) for $62.00 per share in cash. The larger story for many, though, is how the market finished on Friday. It finished with a hard-charging rally, and there is some carryover momentum today as a result that is meshing with new month inflows and the absence of any negative shocks from the weekend headlines.
OPEC+ in particular agreed to maintain its reduced production level through 2025, Mexico elected its first female president, and Prime Minster Modi’s party won a weekend election in India much to the delight of India’s stock market, which rallied 3.4% Monday to a fresh record in response.
This week will feature a buys news cycle.
The ASCO Conference continues in Chicago, driving a lot of headline news for pharma/biotech companies, more retailers will be reporting their quarterly results, the ECB is expected to cut its key lending rates at its policy meeting on Thursday, and the U.S. economic calendar features a full slate of data, starting today with the May ISM Manufacturing PMI at 10:00 a.m. ET and ending Friday with the May Employment Situation Report at 8:30 a.m. ET.
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Originally Posted June 3, 2024 – NVIDIA and GameStop setting the pace
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Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, please read the Security Futures Risk Disclosure Statement. For a copy visit ibkr.com
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by going to the following link ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.
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