Here are five key points investors should be aware of as the trading day begins:
1. Boom Times
The S&P 500 hit its 34th record close of the year on Friday, bringing its 2024 rally to 16.7%. The Nasdaq Composite also reached a new high, driven by gains in Tesla and Nvidia, with a year-to-date increase of 22.3%. The Dow Jones Industrial Average added 0.17%, or 67.87 points. Friday’s rally was fueled by a jobs report that sparked hopes for potential rate cuts from the Federal Reserve. This week, investors will focus on upcoming inflation data: the June consumer price index on Thursday and the producer price index on Friday. Follow live market updates.
2. Boeing Pleads Guilty
Boeing has agreed to plead guilty to a criminal fraud charge related to two 737 Max crashes that resulted in 346 deaths, the Department of Justice announced on Sunday. U.S. prosecutors stated that Boeing violated a 2021 settlement that had protected it from prosecution. Under the new plea deal, Boeing will pay a $243.6 million fine and have an independent monitor oversee compliance for three years. The agreement, pending judge approval, also requires Boeing to invest at least $455 million in compliance and safety programs and for its board to meet with victims’ families. The deal spares Boeing from a trial.
3. Back in Business
David Ellison’s Skydance Media and Paramount Global announced late Sunday their agreement to merge after months of negotiations. Shari Redstone, Paramount’s controlling shareholder, will sell her family’s stake in a complex transaction leading to the merger. This comes weeks after an earlier deal fell through due to concerns from Redstone. The new agreement sweetens the deal for the Redstone family, increasing their payout to $1.75 billion and enhancing legal protections against potential shareholder lawsuits. Paramount has 45 days to seek a better offer, so further developments may follow.
4. Biden’s Big Week
President Joe Biden faces a critical week as the House and Senate return from a holiday recess amid mounting pressure for him to withdraw from the race. Several House Democrats have called for Biden to step down after a poor debate performance against former President Donald Trump. In an ABC News interview on Friday, Biden defended his mental health and vowed to continue his campaign. Sen. Chris Murphy, a close ally, noted that Biden’s interview did not fully address concerns. NBC reported that Biden’s leadership was questioned during a call led by House Democratic Leader Hakeem Jeffries with lawmakers on Sunday.
5. Bouncing Back
Tesla stock surged on Friday, erasing its losses for 2024. After a rocky start to the year, falling as low as $138.80 in April, Tesla shares climbed 27% last week, closing at $251.55. The increase was driven by a better-than-expected second-quarter deliveries report released on Tuesday. While deliveries fell 4.8% from the previous year, they exceeded Wall Street estimates and showed less decline than the first quarter. Tesla has been offering significant discounts and incentives to attract customers to its electric vehicle lineup.
Stay updated with these key points as the market opens for the week.
