Nasdaq leads stocks higher as GameStop soars

Live7 updates

• Mon June 3, 2024 at 10:07 a.m. EDT

  ISM report shows further contraction in manufacturing activity

  New data released on Monday showed a mixed reading on manufacturing sector activity in May.

  The Institute for Supply Management’s manufacturing PMI indicated that the manufacturing sector contracted further in May, while a measure from S&P Global showed that manufacturing activity grew more than initially expected in May.

  The ISM manufacturing PMI recorded a reading of 48.7 in May, down from a reading of 49.2 and lower than the 49.5 expected by economists, according to Bloomberg data.

  “U.S. manufacturing activity continued to contract after expanding in March, the first expansion in the sector since September 2022,” Timothy Fiore, chair of the ISM Manufacturing Survey Committee, said in the release. of the company. “Demand was again weak, production was stable and inputs remained accommodative.”

  Fiore added: “Demand remains elusive as companies demonstrate a reluctance to invest due to current monetary policy and other conditions.”

  The manufacturing PMI released Monday by S&P Global showed that US manufacturing activity rose to 51.3, up from 50.9 previously, while new orders in the sector returned to growth.

• Mon June 3, 2024 at 9:32 a.m. EDT

  Nasdaq and S&P 500 rise at open

  Markets opened higher on Monday to kick off the first trading day of June.

  The tech-heavy Nasdaq Composite (^IXIC) and the benchmark S&P 500 (^GSPC) rose about 0.8% and 0.4%, respectively, while the Dow Jones Industrial Average ( ^DJI) oscillated around the flat line.

  A surge in GameStop (GME) shares has drawn attention, reigniting speculation of a return to a 2021 meme-style rally. GME shares were halted due to volatility after soaring around 64 % shortly after the opening bell.

• Mon June 3, 2024 at 7:52 a.m. EDT

  Ford CEO to Yahoo Finance on Electric Vehicle Profits

  Ford (F) CEO Jim Farley told me in a new episode of Yahoo Finance’s “Opening Bid” podcast that he has a date in mind when Ford will make money from electric vehicles.

  But he didn’t want to share it with me during a session in Detroit! Ford is expected to lose around $5 billion in its EV division this year.

  I did, however, appreciate Farley’s focus on running a profitable EV business, which means streamlining costs and reducing aggressive timelines for building EV factories.

  You can watch the full episode below or listen to it on all major podcast platforms like Spotify, Apple, Amazon, Pandora, and iHeartmedia.

• Mon June 3, 2024 at 5:42 a.m. EDT

  Nvidia continues to roll in terms of sentiment

  Nvidia (NVDA) shares are enjoying a 3% premarket boost after another well-received presentation from founder Jensen Huang, this time at Computex in Taipei.

  The biggest was that Nvidia unveiled its next generation of AI chips called Rubin. This is impressive, since Nvidia just announced new AI chips in March.

  “Net-net, we view these four announcements as an excellent representation of Nvidia’s efforts to build on its current dominance of AI accelerators to establish a strong presence in what is for the company a total addressable market “Largely untapped $1 trillion in combined accelerated computing, with more AI networking in the largely CPU-centric server market,” Citi analyst Atik Malik said in a client note .

  Unsurprisingly, Malik maintained a buy rating on Nvidia shares.

  Meet Nvidia via Yahoo Finance’s recent exclusive interview with Huang.

• Mon June 3, 2024 at 5:33 a.m. EDT

  The mood around software stocks after the Salesforce shock

  Salesforce’s (CRM) results last week really left a bad taste in the mouths of tech bulls.

  So much so that they voiced their concerns at a closely watched Jefferies technology conference in Newport Beach late last week.

  Here are some key takeaways from Jefferies Technical Analyst Brent Thill:

  • “Macro headwinds persist. Investor sentiment in the software sector remains negative as companies report a challenging macro environment. Weakness was widespread across the front office, back office, large and small businesses. Workday (WDAY) and Salesforce both highlighted weak growth in EMEA.

  • “AI is crowding out. Despite long-term industry tailwinds around AI, investor concerns were about short-term budget shifts away from software, with companies focusing on semiconductors and material.”

• Mon June 3, 2024 at 5:25 a.m. EDT

  Reminder in June for stocks

  June is the second worst-performing month of the year for the S&P 500 over the past 15 years.

  Useful chart from BTIG this morning.

• Mon June 3, 2024 at 5:21 a.m. EDT

  GameStop explodes

  And so the week begins….

  Shares of GameStop (GME) rose 85% premarket (up 103%) as meme overlord Keith Gill appeared to disclose a $116 million position in the video game retailer on Reddit. It was his first position in three years.

  Note that the post could not be verified, like the one posted from his X account a few weeks ago.

  All I can say is be careful with this one!

  Rather, the real game is researching Reddit (RDDT) given the increased activity on the platform. Start your fact-finding mission here.