US close: Stocks in the green ahead of key data points

Wall Street managed a positive close on Monday, aligning with the upward momentum seen in European markets, as investors positioned themselves ahead of a raft of significant economic data set to be unveiled later this week.

The Dow Jones Industrial Average advanced by 0.25%, settling at 34,663.72 points, while the S&P 500 climbed 0.67% to close at 4,487.46 points.

Looking even more bullish was the tech-heavy Nasdaq Composite, which outperformed its counterparts as it jumped 1.14% to finish at 13,917.89 points.

On the currency front, dollar was unchanged against sterling, hovering at 79.94p, while it gained 0.01% against the common currency to trade at 93.03 euro cents.

The greenback saw a slight decline of 0.02% against the yen, meanwhile, changing hands at JPY 145.56.

“Gains in futures this morning had come mainly from more optimistic talk of a soft landing in the US, and by Morgan Stanley’s bullish Tesla upgrade, but this has proven a shaky foundation for a sustainable rally,” said IG chief market analyst Chris Beauchamp.

“Today’s generally quiet session means that attention is focusing squarely on the US CPI data and ECB decision due this week, and with the risk that both could deliver nasty surprises, risk appetite has been limited.”

European Commission revises economic forecasts amid slowing growth momentum

In economic news, the European Commission released its updated summer 2023 outlook, reflecting a more cautious stance on the growth prospects of the eurozone and the broader 27-member European Union.

While affirming that the EU continued on its growth path, the vigour behind the economic upswing appears to be waning.

Its anticipated growth for 2023 was adjusted from the initial 1% to a more modest 0.8%, while 2024's growth outlook has been revised downwards from 1.7% to 1.4%.

A similar trend was seen for the eurozone, with growth predictions now standing at 0.8% for 2023, down from 1.1%, and 1.3% for 2024, reduced from the prior estimate of 1.6%.

Germany, Europe's largest economy, was facing particular challenges.

Contrary to prior positive expectations, the European Commission highlighted concerns of a looming prolonged recession for the country, with rising inflation coupled with increasing interest rates cited as contributing factors.

The German economy was now predicted to contract by 0.4% in the current year, a significant deviation from the earlier forecast of 0.2% growth.

Apple and Tesla turn in solid performance

In equities, shares of Apple rose 0.66% in anticipation of the company's forthcoming 'Wonderlust' event scheduled for Tuesday.

The time of year usually proves the most robust quarter for the US tech behemoth.

While Apple's stock had seen a decline of 6% last week - stemming from reports of China prohibiting its government officials and state agency personnel from using iPhones in their professional capacity - the anticipation surrounding potential product launches was now buoying sentiment.

Michael Hewson at CMC Markets speculated the event might showcase innovations such as the iPhone 15 and the Apple Watch series 9.

Additionally, expectations included the unveiling of a standard iPad equipped with advanced chipsets, a new USB-C charging mechanism, and potentially an update about the VisionPro headset.

Meanwhile, Tesla's shares surged 10.09% by the close, on the back of a shift in Morgan Stanley's perspective on the electric vehicle company's stock, elevating its position to 'overweight'.

The bank spotlighted Tesla's proprietary supercomputing product, Dojo, which had been under development for half a decade.

Morgan Stanley said it believed Dojo held the potential to bolster Tesla's enterprise valuation by as much as $500bn, and elevated its target stock price from $250 to an ambitious $400.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

3M Co. (MMM) $107.89 1.55%
Intel Corp. (INTC) $38.59 1.53%
Verizon Communications Inc. (VZ) $33.94 1.46%
Johnson & Johnson (JNJ) $162.66 1.31%
Procter & Gamble Co. (PG) $154.75 1.19%
Walt Disney Co. (DIS) $82.51 1.15%
Microsoft Corp. (MSFT) $337.94 1.10%
Coca-Cola Co. (KO) $58.88 0.94%
Amgen Inc. (AMGN) $261.72 0.88%
Travelers Company Inc. (TRV) $161.18 0.78%

Dow Jones - Fallers

Walgreens Boots Alliance, Inc. (WBA) $21.43 -2.55%
Chevron Corp. (CVX) $163.76 -2.06%
Nike Inc. (NKE) $96.78 -0.90%
Merck & Co. Inc. (MRK) $108.60 -0.41%
Unitedhealth Group Inc. (UNH) $479.38 -0.29%
Goldman Sachs Group Inc. (GS) $324.54 -0.27%
Boeing Co. (BA) $211.00 -0.12%
Home Depot Inc. (HD) $328.30 -0.10%
Caterpillar Inc. (CAT) $282.06 -0.08%
Dow Chemical Co. (DOW) $53.67 -0.07%

S&P 500 - Risers

Nektar Therapeutics (NKTR) $0.65 11.61%
CVS Health Corp (CVS) $68.75 4.42%
QUALCOMM Inc. (QCOM) $110.28 3.90%
M&T Bank Corp. (MTB) $126.15 3.60%
Amazon.Com Inc. (AMZN) $143.10 3.52%
Stryker Corp. (SYK) $299.73 3.52%
Meta Platforms Inc. (META) $307.56 3.25%
Charter Communications Inc. (CHTR) $435.84 3.18%
Coty Inc. Class A (COTY) $11.62 2.83%
Teleflex Inc. (TFX) $211.79 2.41%

S&P 500 - Fallers

RTX Corporation (RTX) $76.90 -7.88%
J. M. Smucker Co. (SJM) $131.69 -7.01%
VF Corp. (VFC) $17.67 -6.01%
Marathon Oil Corp. (MRO) $26.16 -4.21%
Lincoln National Corp. (LNC) $24.60 -4.17%
Devon Energy Corp. (DVN) $50.78 -3.57%
CenturyLink Inc. (LUMN) $1.37 -3.52%
Gen Digital Inc. (GEN) $19.31 -3.40%
Nordstrom Inc. (JWN) $14.16 -3.28%
Kroger Co. (KR) $45.43 -3.22%

Nasdaq 100 - Risers

Tesla Inc (TSLA) $273.58 10.09%
QUALCOMM Inc. (QCOM) $110.28 3.90%
Amazon.Com Inc. (AMZN) $143.10 3.52%
Vodafone Group Plc ADS (VOD) $9.51 3.26%
Meta Platforms Inc. (META) $307.56 3.25%
Charter Communications Inc. (CHTR) $435.84 3.18%
NetEase Inc. Ads (NTES) $101.41 3.06%
Mondelez International Inc. (MDLZ) $71.37 2.22%
Cadence Design Systems Inc. (CDNS) $243.24 2.21%
Kraft Heinz Co. (KHC) $33.63 2.03%

Nasdaq 100 - Fallers

Gen Digital Inc. (GEN) $19.31 -3.40%
Walgreens Boots Alliance, Inc. (WBA) $21.43 -2.55%
Dish Network Corp. (DISH) $6.14 -2.54%
Illumina Inc. (ILMN) $154.75 -2.28%
O'Reilly Automotive Inc. (ORLY) $942.50 -1.65%
Seagate Technology Plc (STX) $64.31 -1.62%
JD.com, Inc. (JD) $31.92 -1.48%
Western Digital Corp. (WDC) $42.90 -1.31%
Expedia Group Inc. (EXPE) $108.49 -1.19%
Skyworks Solutions Inc. (SWKS) $98.23 -1.16%