Dow Jones rises as Apple’s “Flex The Muscles” moment arrives; Oil prices are rising due to the Saudi movement

The Dow wasn’t much changed on Monday morning, as the S&P 500 and Nasdaq Composite added to last week’s big gains. Crude oil prices rose in the wake of a sudden production cut in Saudi Arabia. while, apple (AAPL) is expected to be a major product unveiling, with Tesla (TSLA) And Palo Alto Networks (Banu) also mobilize.

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With the debt ceiling now raised, the Treasury Department is set to issue a massive amount of short-term Treasury bills from Monday.

It is rumored that Apple is showing off its mixed reality glasses On Monday, an analyst described the annual WWDC event as a “muscle moment” for tech giant Dow. AAPL stock rose slightly, hitting a new all-time high.

Among other huge stocks, Microsoft (MSFT), a parent from Google the alphabet (Google) rose higher. nvidia (NVDA) And Meta platforms (meta) is slanted downward. TSLA stock rose modestly amid strong sales in China, after breaking out into buy territory on Friday.

Meanwhile, PANW stock jumped after news of this will be added to the S&P 500, Among the many changes on the horizon for Standard & Poor’s indices.

Major banks may have to increase capital levels by up to 20%, The Wall Street Journal reported on Monday, one of many steps regulators may take to strengthen the banking system. Large banking stocks were modestly active in the primary market.

immunity (imgn) rose 5% after the biotech reported positive results for an ovarian cancer drug in a late-stage trial.

Tesla shares joined IBD Leaderboard On Friday, it will join META stocks and Palo Alto Networks. Microsoft stock is running Long-term leaders of IBD. PANW inventory is on file IBD Big Cap 20.

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Dow Jones today

The Dow Jones Industrial Average was just below the breakeven point. The S&P 500 rose 0.1%. The Nasdaq rose 0.1%.

At 10 am ET, the ISM will release its non-manufacturing index for May. The services index is expected to rise 0.1 points to 52. Readings above 50 indicate growth.

Oil rises due to the Saudi production cut

US crude oil prices retested the top of their recent trading range, up more than 2% to above $73 a barrel. Saudi Arabia said on Sunday that it will unilaterally cut production by 1 million barrels per day in July. OPEC+ also agreed on Sunday to extend current production levels until 2024.

Weaker-than-expected Chinese demand and excess production by Russia combined with sharp pressure on the markets by short sellers sent crude oil prices to a 52-week low. OPEC officials warned short sellers to take action ahead of Sunday’s meeting.

Last week, crude oil futures fell 1.3% to $71.74 a barrel on short positions. accumulated before the meetingBut prices jumped 2.3% on Friday.

Treasury issuance

With President Biden signing the debt ceiling agreement, the Treasury Department will now rush to issue new short-term debt. The Treasury Department could sell $170 billion worth of treasury bills on Monday.

That could rattle Treasury rates, even though the markets were well aware that sales were coming. More penned treasury sales will quickly follow. The renewed Treasury issuance will absorb significant liquidity in the market, after offsetting much of the Federal Reserve’s quantitative tightening in recent months. This could affect stocks.

The 10-year Treasury yield rose to 3.74% after falling 13 basis points to 3.69% last week. However, treasury bill prices fell.

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Stock market rise

Last week’s stock market rally showed strong and broad gains, especially on Friday.

The Dow Jones Industrial Average jumped 2% in the past week Stock market trading, to retrace the 50-day line on Friday after testing the 200-day line during Thursday. The S&P 500 rose 1.8%, decisively surpassing its range in 2023. The Nasdaq Composite rose 2%, hitting a 13-month high. The small cap Russell 2000 jumped 3.3%, crossing the 200-day line.

Exchange Traded Funds

Among the growth ETFs is iShares Expanding Technology and Software Sector Fund (IGV) figured 2.1%. MSFT stock is one of IGV’s most important holdings. PANW is also one of IGV’s top 10 stocks. VanEck Vectors Semiconductor Corporation (SMH) decreased by 0.8%. NVDA stock is a huge component of SMH.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(Jumped 6.45% last week and ARK Genomics ETFs)ARKG) jumped 4.9%. Tesla stock is the number one stock ETF held by Ark Invest.

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Apple Mixed Reality Headset

Apple is expected to launch its long-awaited mixed reality headset during a keynote presentation at 10 a.m. at its annual Worldwide Developers Conference. Dubbed the Reality Pro, the headset is likely to be the tech giant’s first new product line since the Apple Watch in 2015.

But the price, reportedly around $3,000, could deter buyers and limit its mass-market appeal. Meta Platforms recently revealed its latest Meta Quest headset. Other competitors are Microsoft HoloLens as well as offerings from HTC and Amazon.com Sony (Sony).

Apple is also expected to provide details of the latest operating systems for iPhone, iPad, Mac, Apple TV, and Apple Watch. CEO Tim Cook can also discuss Apple’s artificial intelligence efforts.

We expect WWDC to be “another resilience moment” for Apple, Wedbush analyst Dan Ives wrote in a note to clients Sunday.

Meanwhile, Evercore analysts raised the AAPL price target to 210 from 190.

Apple stock rose more than 1% to above 183 on Monday morning, surpassing its January 2022 all-time high of 182.94. Last week, AAPL stock rose 3.15% to 180.9. The company also locks in a $3 trillion market cap, ending Friday’s session at $2.85 trillion.

Other Megacap Technologies

MSFT is up by a fraction. Shares rose 0.75% last week to 335.40, hitting a 17-month high, not far from their November 2021 high.

Google stock rose slightly early Monday. Last week, shares rose 6 cents to 124.67. Google stock has been trading tightly over the past few weeks at a 52-week high. It almost contained a file Tight three weeks Model, it only lost it because one of the weekly gains was 1.51%, exceeding the 1.5% limit. But investors could use the move above the May 22nd high of 126.43 as a place to add a bit to their position.

META shares have tilted lower, with Oppenheimer raising its target for META price to 350 from 285. Facebook stock jumped 4% last week to 276.21, its highest in 52 weeks.

Nvidia stock is down. Shares rose 1% last week to 393.27, but are off Tuesday’s all-time high of 419.38. NVDA stock is up 169% in 2023 and 96% above 200 days, and it could use an extended break.

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Tesla stock

Tesla stock advanced more than 2%. Shares rose 10.8% to 213.97 last week. On Friday, TSLA stock crossed the 207.89 buy point of what is either cup or Double bottom base. The EV giant has surged in volume above average for five straight sessions, after just a few such days in the previous three months.

Tesla sold 77,695 Chinese-made vehicles in May, including exports, according to data released Monday by the China Passenger Car Association. This represents an increase of 2.4% from April. A breakdown of domestic sales versus exports will come in a few days.

Tesla now says its base Model 3 gets a full $7,500 tax credit in the US, along with all other Model 3 and Model Y cars.

Palo Alto Stock

PANW stock rose 3% early Monday, off its early highs. Stocks last week liquidated the long-term consolidation.

Palo Alto Networks will join the S&P 500 ahead of the June 20 open, replacing dish network (Dish).

This is part of a number of changes to the S&P indexes. proximity (the documents), Berry Global (Berry), bwx techniques (bwxt), Planet Fitness (PLNT) And Crown Holding (CCK) are among those joining the S&P MidCap 400.

Artisan Partners Asset Management (father mother) And CarGurus (Payload) is among the new additions to the S&P SmallCap 600.

Please follow Ed Carson on Twitter at @employee For stock market updates and more.

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