US S&P 500, Nasdaq climbs to fresh records

US stock market finished choppy session slightly higher after bouncing back and forth across the unchanged line on Monday, 10 June 2024, ahead of several key events later this week, including the Labor Department report on consumer price inflation for May and the Federal Reserve's monetary policy meeting.

Treasury yields continued to climb after surging Friday following a stronger-than-expected jobs report that raised doubts about the timing of Fed interest rate cuts. Yields edged higher with the 10-year treasury rising about 4 basis points to trade near 4.47%.

At closing bell, the Dow Jones Industrial Average index advanced 69.05 points, or 0.18%, to 38,868.04. The S&P500 index added 13.80 points, or 0.26%, to 5,360.79, new record closing highs. The tech-heavy Nasdaq Composite index increased by 59.40 points, or 0.35%, to 17,192.53, new record closing highs.

Total 8 of 11 S&P500 sectors ended higher along with gain in the S&P500 Index. Utilities sector was top performers, rising 1.27%. Financial sector was bottom performer, falling 0.39%.

Shares of General Motors gained 4% after the United Auto Workers union reached a tentative contract agreement with GMs electric vehicle battery venture Ultium Cells.

Apples shares fell nearly 2% after it unveiled Apple Intelligence, its custom artificial intelligence system built into the newest iPhone, iPad, and Mac operating systems. Apple is positioning Apple Intelligence as a unique offering that can understand you and your data, rather than a broad-based AI system like ChatGPT or Google's AI Overview.

Huntington Bancshares shares declined 6.1% after it lowered its full-year net interest income forecast as deposit costs are likely to remain elevated and lending activity sluggish.

Illumina shares fell 3.4% after S&P Dow Jones Indices on Friday announced it would be replaced in the S&P 500 by private equity firm KKR (KKR)

ECONOMIC NEWS: NY Fed Survey Shows US Consumers' 1-year Inflation Expectations Ease In May- A survey by the New York Fed showed on Monday that Americans' short-term inflation expectations eased slightly, while their view on price pressures in the longer term increased, and their expectations for the stock market hit a three-year high. The Federal Reserve Bank of New York's May Survey of Consumer Expectations showed that one-year-ahead inflation expectations fell to 3.2% from 3.3% in April. Expectations for inflation in three years was unchanged at 2.8%, while the projection for the five-year horizon rose to 3.0% from 2.8%. Households' expectations for the financial situation in 12 months were the strongest since June 2021, with 78.1% of survey respondents expecting to be financially the same or better off in a year's time. The mean perceived probability that U.S. stock prices will be higher in the year ahead increased to 40.5%, the highest reading since May 2021, the survey showed. The median expected increase in home prices in 12 months was steady at 3.3% in May. Food price growth expectation for the same time period was also unchanged at 5.3% and that for gas prices was steady at 4.8%. Th expected growth in healthcare costs in one year rose to 9.1% from 8.7%, while that for college education eased to 8.4% from 9.0%. The expected increase in rents was unchanged at 9.1%. The median one-year-ahead expected earnings growth was unchanged at 2.7%, while the mean probability that the U.S. unemployment rate will be higher one year from now increased to 38.6% from 37.2%.

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