Corrected: US STOCKS-S&P 500, Nasdaq post record closing highs; Fed meeting, CPI ahead

Diamond Offshore Drilling

11/06/2024 24:54

(Repeats update 7. In first paragraph and bullet point deletes
reference to Apple developer conference. In paragraph 10 please
read "on the first day of the iPhone maker's annual developer
conference" instead of "ahead of". Corrects that developer
conference already began.)

        * 
      Southwest jumps after Elliott reveals nearly $2 bln stake
    

        * 
      Apple slips 
    

        * 
      Indexes: Dow up 0.2%, S&P 500 up 0.3%, Nasdaq up 0.4%
    

  
    By Caroline Valetkevitch
       NEW YORK, June 10 (Reuters) - The S&P 500 and Nasdaq
eked out record closing highs on Monday, although investors were
cautious ahead of this week's consumer prices report and a
Federal Reserve policy announcement.
    Providing some support to the Nasdaq and S&P 500, Nvidia
 NVDA.O  shares ended up 0.7%, the session after a 10-for-one
stock split. Some investors now believe the chip maker might be
included in the blue-chip Dow.
    The Consumer Price Index report for May is due Wednesday
along with the conclusion of the Fed's two-day policy meeting.
    The central bank, which will release updated economic and
policy projections, is expected to hold interest rates steady.
Investors will look for clues on when the U.S. central bank may
begin to cut interest rates.
    "This is an important week for the market in terms of
comments and messaging from the Federal Reserve," said Quincy
Krosby, chief global strategist, LPL Financial in Charlotte,
North Carolina.
    "In addition to that, you're going see Wednesday morning the
CPI report. Anything related to the economy and anything related
to inflation is viewed by the market through the lens of the
Federal Reserve."
        The Dow Jones Industrial Average  .DJI  rose 69.05
points, or 0.18%, to 38,868.04, the S&P 500  .SPX  gained 13.8
points, or 0.26%, to 5,360.79 and the Nasdaq Composite  .IXIC 
added 59.40 points, or 0.35%, to 17,192.53.
  
    Traders dialed back expectations for rate cuts in September
after Friday's stronger-than-expected jobs data for May, with
the odds of a reduction at 50%.    
    
    
        "I feel like it's going to be pretty muted as people try
to hedge themselves for what they might see on Wednesday," said 
   Alex McGrath, private wealth advisor at NorthEnd Private
Wealth.
    Apple  AAPL.O  shares dipped 1.9% on the first day of the
iPhone maker's annual developer conference. Investors are eager
for updates on how it is integrating artificial intelligence
into its offerings.
    Among the day's gainers, Southwest Airlines  LUV.N  jumped
7% after activist investor Elliott Investment Management
disclosed it has built up a $1.9 billion position in the
company.
    Diamond Offshore Drilling  DO.N  shares climbed 10.9% after
oilfield services company Noble  NE.N  said it would buy the
smaller rival in a $1.59 billion deal. Noble shares rose 6.1%.
        Advancing issues outnumbered declining ones on the NYSE
by a 1.06-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored
advancers.
  
        The S&P 500 posted 19 new 52-week highs and 5 new lows;
the Nasdaq Composite recorded 56 new highs and 177 new lows.  
  
        Volume on U.S. exchanges was 10.39 billion shares,
compared with the 12.80 billion average for the full session
over the last 20 trading days.
  

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 (Additional reporting by Lisa Pauline Mattackal and Johann M
Cherian in Bengaluru; Editing by Pooja Desai and David Gregorio)
 ((caroline.valetkevitch@thomsonreuters.com))