The Dow Jones Industrial Average reached a notable milestone, closing above 44,000 for the first time on Monday. Similarly, the S&P 500 also marked its own milestone, topping 6,000, as investors anxiously awaited critical inflation data and corporate earnings set to be released this week. The Dow surged by 0.7%, finishing at 44,293.1, while the S&P 500 edged up by 0.1% to close at 6,001.4.
The Nasdaq Composite also saw a slight increase of 0.1%, closing at 19,298.8. These three indexes have continued their record-setting rallies following Donald Trump's recent victory in the 2024 US presidential election. In sector performance, consumer discretionary stocks led the gains, while the technology sector faced the largest declines.
Investors are keenly watching for official data that are expected to be released on Wednesday, revealing that US consumer inflation for October has increased by 0.2% month-over-month and 2.4% year-over-year, as suggested by a consensus compiled by Bloomberg. Morgan Stanley stated that core inflation, which excludes the volatile food and energy segments, is projected to accelerate by 0.3%.
"However, we believe the strength is largely temporary noise, stemming from a short-term acceleration in automobile prices due to the recent hurricanes, as well as a brief payback in shelter costs after the disappointing figures from September," the report noted. Furthermore, the official producer price index data for the previous month is expected to be published on Thursday. Several prominent companies are poised to release their quarterly financial results later in the week, including Home Depot, Cisco, Walt Disney, and AstraZeneca. In Monday’s company updates, Tesla shares soared by 9%, marking the highest gain on the Nasdaq and a significant increase among the S&P stocks.
According to Wedbush Securities, the electric vehicle manufacturer’s prospects in artificial intelligence are likely to gain momentum under the Trump administration. Cigna Group shares rose by 7.3%, placing it among the top S&P 500 gainers, particularly after the health insurance provider announced it is not pursuing a merger with Humana and is on track to achieve its full-year earnings target.
Conversely, Humana shares dipped by 2% following this news. Salesforce saw its shares advance by 6.2%, leading gains on the Dow as Jefferies raised its price target for the stock from $350 to $400 while maintaining a buy rating. On a less favorable note, AbbVie disclosed that its two Phase 2 trials assessing emraclidine in adult patients with schizophrenia and acute exacerbation of psychotic symptoms failed to achieve their primary endpoints.
Consequently, the company’s shares plummeted by 13%, ranking as the second-largest faller on the S&P. Celanese shares also struggled, dropping 7.3%, amidst negative rating adjustments from UBS and BMO Capital. In the energy sector, West Texas Intermediate crude oil prices fell by 3.1%, settling at $68.22 per barrel.
This decline occurred as the potential for a supply disruption due to storm Rafael in the Gulf of Mexico diminished, and disappointment arose over China's recent stimulus measures, according to Reuters. Bond markets in the US were closed on Monday in observance of Veterans Day. In commodities, gold prices decreased by 2.4% to $2,629.80 per troy ounce, while silver prices saw a drop of 2.1% to $30.8 per ounce..