Today’s article features DJ Khaled on the cover because as far as records go, we’ve just broken “Another one!”

In case you’re wondering, nope, the highlight of the day had nothing to do with Roaring Kitty or Gamestop.

But we still have lots to go over.

Today we’ve got the Nasdaq hitting a new record…

The behind-the-scenes drama brewing between Southwest Airlines and an investment firm seeking to oust their CEO.

Of course, our Top Stock Spikers of the day…

And everything you need to know about Apple’s brand new AI Platform reveal…

In Super Mario fashion, “Here we go!” 

 

But first take a look at where today’s heatmap landed…

Wall Street Hits New Records Ahead of Fed Meeting

Wall Street started the week with a bang, as the S&P 500 and Nasdaq hit new records on Monday. Investors are gearing up for a busy week, with a slew of top-tier inflation reports and the Federal Reserve’s latest meeting on interest rates on the horizon.

The S&P 500 rose 0.3% to 5,360.79, surpassing last week’s all-time high. The Nasdaq also set a record, climbing 0.3% to 17,192.53, while the Dow Jones inched up 0.2% to 38,868.04.

Southwest Airlines had a standout day, soaring 7% after Elliott Investment Management announced a $1.9 billion stake in the company and plans to overhaul its software, strategy, and operations. Diamond Offshore Drilling saw an even bigger jump, up nearly 11%, following a buyout deal by Noble valued at $1.6 billion, which also boosted Noble's stock by 6.1%.

On the flip side, Huntington Bancshares dropped 6.1% after cutting its profit forecast. Apple also slid 1.9% despite showcasing new AI features at its conference, a move that didn't quite meet Wall Street's high expectations amid the AI frenzy.

Economic data has been a mixed bag lately. Traders are hoping for a slowdown that cools inflation without tipping into a recession. Last Friday’s stronger-than-expected jobs report was followed by weaker manufacturing data, highlighting the economy’s uneven performance. Consumer spending shows a split between struggling lower-income households and more resilient higher-income ones.

Morgan Stanley’s strategists, led by Michael Wilson, summed it up: “The data remains mixed, leaving all major macro outcomes still on the table for this year.”

AI-driven companies continue to thrive despite the economic uncertainty. Nvidia, for example, saw its stock rise 0.7% on Monday, its first day of trading since a 10-for-one stock split.

Treasury yields were mixed ahead of key reports on inflation. The 10-year Treasury yield edged up to 4.46%, while the two-year yield, closely tied to Fed expectations, slipped slightly to 4.88%.

Globally, France’s CAC 40 index fell 1.3% after President Macron dissolved the National Assembly following unexpected gains by far-right parties in the European Parliament elections. The euro’s value also dropped. In Asia, markets were mixed, with Tokyo’s Nikkei rising and South Korea’s Kospi falling.

Stay tuned this week as the Federal Reserve announces its latest interest rate decision on Wednesday, along with updated forecasts for the economy and interest rates. Wall Street is betting on one or two rate cuts in 2024, down from the three cuts projected earlier this year so stay tuned.

Stocks.News Spikers of the Day

Kwesst Micro Systems Inc.: [KWE] [+120.46%]

Mobiquity Technologies, Inc.: [MOBQ] [+63.35%]

Forget “AI”, Apple Intelligence Is Here

Earlier today, Apple rolled out its long-awaited generative AI platform, Apple Intelligence, at the WWDC conference in Cupertino, California. This new tech will be deeply embedded across Apple's ecosystem, from iPhones and Macs to Mail, Messages, and Photos.

Unlike broad-based AI systems like ChatGPT or Google’s Bard, Apple Intelligence is designed to get you and your data. It’s set to debut this fall on iPhone 15 Pro, iPads, and Macs with M1 chips and newer.

One of the biggest updates is coming to Siri. The voice assistant that’s been around since flip phones were cool is finally getting a makeover. Siri will now sport a fresh look, sound more natural, and respond faster. You can even text your requests if you’re not in a chatty mood. Plus, Siri will be able to use ChatGPT if you prefer, rather than sticking to Apple’s models.

The new Siri will also be more aware of what's happening on your device. Got a friend's address in Messages? Siri can save it for you. Need to find a specific photo? Just ask Siri for "photos of Stacy in New York wearing a pink coat," and it’ll dig it up from your Photos app.

Apple is also enhancing notifications to prioritize what’s important and downplay the trivial. Writing tools will help you craft or summarize content across Notes, Mail, and other apps. And yes, you’ll be able to create AI images of people, places, and animals in various styles.

Most of Apple’s AI magic will run directly on your device, but for those tasks that need a little cloud muscle, Apple has introduced Private Cloud Compute. This service ensures your data stays private, using Apple Silicon to keep things secure.

Wall Street has been eager for Apple to join the AI race, especially after Microsoft and Google launched their own AI products last year. However, these rollouts haven’t been smooth. Google’s Bard and Gemini had some embarrassing blunders, and Microsoft's Copilot+PC standard faced security concerns.

Meta also faced backlash for not letting users turn off its Meta AI chatbot. Despite these hiccups, Apple aims to maintain its reputation for security and seamless software. Any major missteps could damage its brand and the broader perception of generative AI.

Apple Intelligence will be available this September, giving Apple some time to iron out any wrinkles.

However, not everything was sunny in Cupertino. On the same day as the big reveal, Apple's stock closed down 1.9%, marking its worst performance on a WWDC keynote day in over a decade. This drop surpassed the 1.5% decline during the 2016 WWDC kickoff. For 2024, Apple’s stock is now barely in the green, up just 0.3% so far. It seems the market is still digesting all the new updates, and only time will tell how this bold step into AI will ultimately play out for Apple.

Stocks.News does own positions in Apple. Please see our disclosure page for more information.