Stock market today: Nvidia inches higher than S&P 500, Nasdaq holds near records

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US stocks were little changed on Thursday after a winning session fueled by Big Tech, with more jobs data on deck to test investors’ rising hopes for a rate cut.

The S&P 500 (^GSPC) wobbled along the flat line at the end of a record close. The Dow Jones Industrial Average (^DJI) was little changed while the Nasdaq Composite (^IXIC) rose 0.1%.

Stocks are regrouping after the roaring rally that also lifted the Nasdaq to an all-time high on Wednesday. Tech stocks helped drive gains, with Nvidia ( NVDA ) overtaking Apple ( AAPL ) as the second-largest U.S. company after both hit $3 trillion in market capitalization.

Shares of AI chip maker Nvidia continued to rise on Thursday, up about 1%. But other tech megacaps faltered, with Apple, Meta ( META ) and Microsoft ( MSFT ) losing some ground.

Meanwhile, Treasury yields rebounded from the declines that drove stocks higher. The benchmark 10-year yield ( ^TNX ) rose to almost 4.30%, down from its lowest level since March that hit on Wednesday.

The market has hailed recent soft economic readings as a reason to put a Federal Reserve policy pivot back on the table, with private ADP payrolls missing only the latest signs of a cooling labor market. . Traders now see a 69% chance of a September rate cut, up from about 50% a week ago, according to the CME FedWatch tool.

Meanwhile across the pond, the European Central Bank cut interest rates by 25 basis points on Thursday for the first time since 2019, in a long-awaited move.

Read more: How does the labor market affect inflation?

Last week’s US jobless claims released on Thursday morning came in at 229,000 versus the 220,000 expected by economists. The data gives investors another clue as to whether the Fed will achieve its desired easing of the economy. But the countdown is on to the May monthly jobs report on Friday, seen as key for stocks.

In individual moves, shares of Lululemon ( LULU ) rose 9% in premarket trading after the sportswear maker raised its earnings outlook and share buyback program.

LIvINg5 updates

  • Stocks hold steady as Nvidia inches higher

    U.S. stocks were little changed Thursday morning after a tech-fueled rally led the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) to records.

    Nvidia ( NVDA ) opened slightly higher after surpassing $3 trillion in market value in the previous session.

    On Thursday, the S&P 500 (^GSPC) hovered around the flat line while the Dow Jones Industrial Average (^DJI) edged slightly lower. The Nasdaq rose about 0.1%.

    Investors have their eyes on the highly anticipated jobs report due out on Friday morning.

  • The commercial PC market is recovering

    Two are a trend in my books.

    Results from major PC manufacturers have recently suggested a comeback in the commercial PC market, finally.

    Loop Capital’s John Donovan issued a note this morning offering more insight into the emerging trend:

    “The more we dig into this sector, frankly the news and updates are getting more and more exciting. All the ingredients are present for a prolonged and extended refresh cycle. Among the inputs are the finalization of return-to-work doctrines, an i prolonged and prolonged lack of improvements since the pandemic (this is also in play on the consumer side to some extent), the return of Windows 10-11 – and this is leading to increased optimism ASPs, especially on the commercial side of the book, and the optimism seems to be realistic.Keep in mind that corporate improvement simply cannot go the “free route” as AI innovations would make “good enough solutions” obsolete “overbought” level in the near future. More good news for PC OEMs.”

    Here’s what HP Inc. (HPQ) CEO Enrique Lores told me about this comeback.

  • A new face on Walmart’s board

    A meaningful new side hustle for one of the most popular CEOs in the fast food industry.

    Chipotle ( CMG ) CEO Brian Niccol has officially been elected as a Walmart ( WMT ) board director. He is now Walmart’s fifth new, independent director to come on board since 2017, CEO Doug McMillon said Wednesday morning before the shareholder vote.

    Niccol replaces longtime board member Rob Walton (son of Walmart founder Sam Walton) who retired as of Wednesday.

    This isn’t Niccol’s first rodeo as a board member outside Chipotle’s borders. He previously served on the boards of KB Home (KBH) and Harley-Davidson (HOG).

    Adding Nicol makes a lot of sense.

    Both Chipotle and Walmart have seen success in recent years as value-conscious consumers look for items they believe allow them to stretch their dollars. Niccol has also led the charge on digital ordering at Chipotle, while McMillon has led a digital renaissance at Walmart.

    While other grocery chains struggled to keep traffic up last quarter, Chipotle saw its same-store sales rise 7%, thanks in part to Niccol’s efforts.

    A similar vibe at Walmart: its US same-store sales rose 3.9% year over year.

    Shares of the burrito chain are up nearly 38% year-to-date, while Walmart shares are up more than 26%. It’s also worth noting that Walmart recently conducted a 3-for-1 stock split, while Chipotle is awaiting shareholder approval for its 50-for-1 split.

  • Hey, before you get excited about this Lululemon neighborhood

    Bears raided Lululemon ( LULU ) stock ahead of its earnings report last night, so I’m taking 9% pre-trade on results that weren’t so brutal.

    But this was not a typical Lululemon quarter (strong double-digit growth in every division) by any means, and the positive reaction may be overblown.

    Worryingly, comparable sales in the Americas division were unchanged from last year. The company called shortages with colored customers, usually not a good sign of future demand. (I’ve covered the stock as an analyst—trust me, that’s not a good indicator.)

    “We advise investors to be short on any strength, the Lululemon brand and its fundamentals have peaked, in our view, and we anticipate relentless competition ahead,” Jefferies analyst Randal Konik said in a client note this morning.

    Konik reiterated a weak rating on the stock.

    It makes a lot of sense.

  • Good for learning AI terminology

    If you’re going to invest in AI, it’s good practice to understand the jargon.

    And that includes yours truly, who isn’t investing in AI, but is writing a lot more about it than I thought I would a decade ago.

    Helpful insight into the topic of “liquid cooling” below in my conversation with HPE ( HPE ) CEO Antonio Neri on Yahoo Finance Live. I think you’ll be hearing more about this, given the power the new AI chips are generating.

    I also found what Neri said about Nvidia (NVDA) interesting.

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Image Source : finance.yahoo.com

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