Stock markets in the United States fluctuated and eventually ended the trading session higher today.
Last week, the S&P 500 reached a record high at 1,949.44 points after gaining 1.3% after being propelled by the European Central Bank (ECB)’s decision to reduce interest rates and data showing that the U.S. economy created more jobs compared with the estimates of economists. Today the S&P 500 climbed 0.09% to 1,951.25 points.
The Federal Reserve is monitoring the U.S. labor market as policy makers move closer to completing the monthly bond-buying program by the end of this year. Then they will start considering a schedule for implementing the first interest rate increase since 2006.
Commenting on the market trends, Aaron Izenstark, co-founder and chief investment officer at Iron Financial LLC, told Bloomberg, “People are concerned that the market hasn’t really had a pull back and has kind of gotten ahead of itself. There’s a continued overhang of nervousness, there are a lot of investors waiting for a pull back and the market continues to climb that wall of worry. People don’t know if they want to get involved.”
Michael Arone, chief investment strategist at State Street Global Advisors’ U.S. Intermediary Business, shared a similar opinion. According to him, “There’s a fair amount of skepticism over if we are at peak valuations.” He added, “My view is the Goldilocks economy is back — not too cold, not too hot, but just right. What we’re starting to see is companies starting to do capital expenditures and M&A to invest in their businesses.”
U.S. Markets
- Dow Jones Industrial Average (DJIA)- 16,942.91 (+0.11%)
- S&P 500- 1,951.25 (+0.09 %)
- NASDAQ- 4,336.24 (+0.34%)
- Russell 2000- 1,174.63 (+0.81%)
European Markets
- EURO STOXX 50 Price EUR- 3,305.26 (+0.33%)
- FTSE 100 Index- 6,875.00 (+0.24%)
- Deutsche Borse AG German Stock Index DAX- 10,008.63 (+0.21%)
Asia-Pacific Markets
- Nikkei 225- 15,124.00 (+0.31%)
- Hong Kong Hang Seng Index- 23,117.47 (+0.73%)
- Shanghai Shenzhen CSI 300 Index- 2,134.28 (-0.02%)
Stocks in Focus
The stock price of Apple Inc. (NASDAQ:AAPL) climbed nearly 2% following the implementation of its seven-for-one stock split as it aims to attract more investments from individual investors. The tech giant’s shares closed at $93.70 at per share today. On Friday, shareholders of record as of the closing of business on June 2 received an additional six shares for every share of Apple stock they owned.
Shares of Analog Devices, Inc. (NASDAQ:ADI) climbed almost 5% to $55.31 per share after the semiconductor manufacturer agreed to purchase Hittite Microwave Corp (NASDAQ:HITT) for approximately $2 billion or $78 per share. Shares of Hittite surged more than 28% to $77.90 per share.
Family Dollar Stores, Inc. (NYSE:FDO) gained nearly 14% to $68.62 per share after activist investor Carl Icahn disclosed that he acquired 10.7 million shares and options of around $265.8 million, based on his regulatory filing with the Securities and Exchange Commission (SEC). Icahn indicated that he might push for operating changes, seek potential board seats, and urge the retail chain’s management to explore strategic alternatives.
The stock value of Tyson Foods, Inc. (NYSE:TSN) dropped more than 6% to $37.50 per share after Hillshire Brands Co (NYSE:HSH) confirmed its unilaterally binding acquisition proposal of $63 per share. Hillshire Brands said its board of directors has not yet approved the deal and that it will not yet make any recommendation on Tyson’s offer. “There can be no assurance that any transaction will result from the Tyson Foods offer,” according to its press statement. Shares of Hillshire Brands Co (NYSE:HSH) rose over 5% to $62.06 per share.
