U.S. Stocks Post Solid Gains
The technology and consumer discretionary sectors led a rally on Monday as U.S. stocks posted solid gains to start the week. Traders seemed unmindful of the escalating global trade tensions and instead focused on a favorable economic backdrop.
For the first time since March 12, the Nasdaq Composite Index closed at a record, climbing 52.13 points (+0.69%) to 7,606.46. The index hit an all-time intraday high of 7,637.27 on March 13. The Dow Jones Industrial Average and the S&P 500 Index advanced 178.48 points (+0.72%) and 12.25 points (+0.45%) respectively.
Investors are still euphoric over last week’s solid U.S. jobs data report which showed that the U.S. economy is healthier than expected.
Netflix & Twitter to Replace Monsanto in S&P 500
Before trading opens on June 7, Thursday, Netflix Inc. (NFLX) and Twitter Inc. (TWTR) will officially join the S&P 100 and the S&P 500 respectively. The S&P Dow Jones Indices will make the changes following Bayer AG’s acquisition of Monsanto Co. (MON).
NFLX will replace MON in the S&P100 while TWTR is the seed maker’s replacement in the S&P 500. NFLX will be added to the consumer discretionary sector while TWTR will be part of the information technology sector.
Apple’s Market Cap Nears $1 Trillion
The shares of Apple Inc. (AAPL) closed at a record-high of $191.83 on Monday. Many were surprised at the stock’s rally because it coincided with the start of 11th Worldwide Developer Conference (WWDC).
Historically, AAPL has never closed higher on the actual first day of any WWDC event. The stock posted a record intraday high by as much as 1.7% to surprise Wall Street. After yesterday’s rally, the tech giant’s market capitalization stands at $942.9 billion.
For Apple Inc. to become the first $1 trillion company, a further 6.1% gain from the current levels is needed. That would be history in the making.
U.S. Senate Panel to Question Facebook on Data Sharing Report
Senate Commerce Chairman John Thune said his committee sent Facebook Inc. (FB) a letter to seek additional information on data sharing. The request stemmed from a report that the social media giant allowed device makers to get access to the data of users’ friends without explicit consent of the friends.
According to the report, the data was shared with a dozen of device makers that include Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Microsoft Corp. (MSFT), Blackberry, HTC, and Samsung. Facebook earlier said no information will be shared with third parties.
Schultz to Relinquish Chairmanship Post at Starbucks
Effective June 26, Starbucks Corp.’s (SBUX) Howard Schultz is stepping down as Executive Chairman of the global coffee chain. Schultz will take the honorary title of chairman emeritus while Myron Ullman, former chairman and chief executive at J.C. Penney Co. (JCP), will assume the chairmanship post.
Schultz is mainly responsible for the expansion of Starbucks Corp. from its humble beginnings in Seattle to one of the world’s most powerful global brands. Some investors believe he was making a move into politics. He might seek a 2020 Democratic presidential nomination. However, Schultz denied having any political ambitions.