US Stocks Rise To Kick Off Third Quarter

GameStop Stock Slides

25 minutes ago

Shares of GameStop (GME) fell more than 4% in intraday trading Monday as investors reacted to news about Keith Gill, the investor known as “Roaring Kitty” who was one of the key drivers of the meme-stock craze of late 2020 and early 2021.

Gill is facing a potential class-action lawsuit, filed late last week, over alleged manipulation of GameStop’s share price. Investors may also think Gill has moved on from the video-game retailer after news of his 6.6% stake in online pet store Chewy (CHWY).

Trump Media Rises as Stock Joins Pair or Russell Indexes

1 hr 55 min ago

Trump Media & Technology Group (DJT) shares rose in intraday trading Monday after the owner of the Truth Social platform has been added to the Russell 3000 and Russell 1000 indexes as part of their annual adjustments.

The media company of the former president will be a part of the indexes until the next annual rebalancing that takes place in June. This year’s adjustments were finalized after markets closed Friday and were effective Monday morning, with dozens of other companies also joining the indexes along with Trump Media.

The Russell 3000 tracks the largest companies that trade on U.S. stock exchanges by market capitalization, and is the basis for the smaller Russell 2000 and Russell 1000 indexes, which track the bottom two-thirds and top third of the larger index, respectively.

Trump media shares have experienced significant volatility since the company merged with Digital World Acquisition Corp. and became a public company in March.

EV Makers Get Boost From Nio’s Record Deliveries

3 hr 25 min ago

Nio’s (NIO) shares jumped Monday after the Chinese electric vehicle maker reported a second-straight month of record deliveries. The news lifted shares of rival EV manufacturers.

Nio said it delivered 21,209 vehicles in June, a near-doubling from last June’s number and a record high.

Nio’s U.S.-listed American Depositary shares were recently up more than 5%. Those of Li Auto (LI) and XPeng (XPEV) also advanced as those EV firms also announced deliveries.

Shares of Tesla (TSLA) and Rivian Automotive (RIVN) were also higher. Rivian secured a multibillion-dollar investment from Volkswagen last week.

–Bill McColl

Key S&P 500 Levels to Watch

4 hr 35 min ago

The large-cap S&P 500 added 3.9% in the second quarter, driven by artificial intelligence (AI)-themed stocks, from chipmakers developing sophisticated processors that power the technology to utilities companies providing electricity for energy-hungry data centers that house AI infrastructure.

These are the key chart levels worth watching out for in the quarter ahead.

The index broke out to a new record high in mid-May and traded in a narrow channel for several weeks before continuing to trend higher throughout most of June. 

More recently. several technical indicators point to slowing upward momentum. Firstly, a bearish engulfing pattern appeared on the chart Friday. This price formation indicates a shift in psychology among market participants and cautions of a potential reversal. Also, as the S&P 500 made a higher high last week, the relative strength index (RSI) made a lower high to create a technical divergence between the price and indicator, also suggesting a weakening of longer-term buying pressure.

The first level to monitor sits at 5,340, an area on the chart that may find support from a horizontal line that connects a series of price action between May and June. A move below this level could see the index revisit the key 5,250 region, where it would likely encounter buying interest near the 50-day moving average, which closely aligns with a horizontal trendline that has flipped from providing resistance to offering support. Finally, a more significant retracement could see a test of the prominent mid-April swing low at 4,954.

–Timothy Smith

Premarket Trading Movers

6 hr 17 min ago

Gains:

• Chewy (CHWY): The online pet retailer is soaring 12% after Keith Gill, also known as “Roaring Kitty,” disclosed an ownership stake of about 6.5% of Chewy shares in an SEC filing. Gill’s posts on X, formerly Twitter, led followers to believe he had invested in Chewy or another pet-related company like Petco (WOOF).
• Spirit AeroSystems (SPR): Shares of the aerospace parts manufacturer are up 4.5% after Boeing (BA) announced a deal has been finalized to reacquire the company.
• Li Auto (LI): The Chinese electric vehicle maker rose 3% as it was one of a number of EV makers to report delivery and production numbers for June Monday morning.

Losses:

• GameStop (GME): Shares of the video game retailer sank more than 7% as markets reacted to Gill’s disclosure of his Chewy shares. Other meme stocks like AMC Entertainment (AMC) and Tupperware (TUP) also traded lower.
• Micron Technology (MU): Micron is down 0.8%, continuing a downward trend that has been ongoing since its disappointing earnings report last week affected its stock along with others in the tech world like Nvidia (NVDA).

Stocks Futures Higher to Kick Off Third Quarter

6 hr 36 min ago

Futures contracts connected to the Dow Jones Industrial Average were up 0.2%.

S&P 500 futures were up 0.3%.

Nasdaq 100 futures also gained 0.3%.