American stock markets should fall again after a favorable second part of the session yesterday. Investors are waiting for tomorrow’s inflation figures in May, but above all the Fed’s decision and comments from its president, Jerome Powell. In the meantime, long rates are falling slightly. On the value side, GM announced a new $6 billion share buyback program. A few minutes before the first exchanges, futures on the S&P 500 and the Nasdaq Composite lost 0.30%. On the other hand, the ounce of gold is gaining ground.
Yesterday on Wall Street
The American indices closed slightly higher, contrary to Europe in the red following the results of the European elections. The Fed will deliver its next monetary policy decision this Wednesday in what will be one of the highlights of this week. On the stock side, Southwest Airlines stock jumped as activist investor Elliott Investment Management accumulated nearly $2 billion in shares of the airline. The Dow Jones gained 0.18% to 38868.05 points and the Nasdaq Composite rose 0.35% to 17192.53 points.
Macroeconomic figures
No significant statistics are expected.
Values to follow
Apple
At its WWDC conference, Apple made announcements about its strategy for using generative artificial intelligence in its products and services. For HSBC, the announcements ultimately fell in line with its and the market’s expectations: new operating systems, improved Siri and ChatGPT integration, to name just a few.
Eli Lilly
Eli Lilly is expected to rise in pre-market trading on Wall Street after its Alzheimer’s disease drug, donanemab, received unanimous support from a panel of experts at the US drug agency, the FDA, according to Reuters. “The agency is not obligated to follow the recommendations of its external advisors, but it generally does so,” the agency emphasizes. The FDA’s final decision was initially expected early this year before it decided to consult its independent panel of experts.
General Motors
American automaker General Motors announced that its board of directors has approved a new share repurchase authorization to repurchase up to $6 billion in shares. In November 2023, GM announced an accelerated stock repurchase of $10 billion, while continuing to have approximately $1.4 billion of remaining capacity under its prior stock repurchase authorization .
Rocket Lab
Rocket Lab (global launch services and space systems company) has signed a preliminary non-binding memorandum of understanding with the US Department of Commerce, which would allow it to receive up to $23.9 million in direct funding, in the framework of the Chips law and the science law. The proposed investment would allow Rocket Lab to increase its production of compound semiconductors for spacecraft and satellites, as part of an expansion and modernization of the company’s facilities in Albuquerque, New Mexico .
Source: AOF
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