- The S&P 500 is in its longest stretch without a 2% selloff since the financial crisis.
- Federal regulators found weaknesses with resolution plans for four of the eight largest banks.
- Target has tapped Shopify to add sellers to its third-party marketplace.
Here are the top five things investors need to know to start day trading:
1. Smooth sailing
The S&P 500 fell 0.16% on Friday, but still posted a 0.6% gain for the week. The broad market index’s recent gains have come with relatively little volatility. The S&P 500 has gone 377 days without a 2.05% selloff, the longest stretch for the benchmark since the Great Financial Crisis, according to FactSet data compiled by CNBC. Meanwhile, the Nasdaq Composite ended the week flat, while the Dow rose 1.45% for its best weekly performance since May. Looking ahead this week, investors will watch for data from the Fed’s preferred inflation gauge to be released on Friday. Follow live market updates.
2. Living wills
Banking regulators said Friday they found weaknesses in the resolution plans, or “living wills,” of four of the eight largest U.S. lenders. Living wills are plans that large financial institutions lay out detailing how they would reliably unwind in the event of distress or failure. Mandated regulatory exercises emerged after the global financial crisis of 2008. Plans from Citigroup, JPMorgan Chase, Goldman Sachs and Bank of America presented in 2023 were insufficient, the Federal Reserve and the Federal Deposit Insurance Corporation. said. They specifically found flaws in the way companies planned to unlock their massive derivatives portfolios. Derivatives are Wall Street contracts linked to stocks, bonds, currencies or interest rates. Of the four, the FDIC said Citigroup had the most serious “deficiency,” meaning its plan would not allow for an orderly resolution under the U.S. bankruptcy code, although the Fed disagreed.
3. Target plus Shopify
The aim is to buy new brands. The retailer said Monday that brands that work with e-commerce company Shopify can apply to join Target Plus, its third-party marketplace. Target said the partnership will help it find hot items — including from smaller or up-and-coming names — and make them available quickly to online shoppers. The team comes as Target has struggled with growth in recent quarters, including in its e-commerce business, although it said its market has gained momentum. Target has a smaller third-party operation than competitors like Walmart and Amazon, but such marketplaces tend to be profitable businesses since retailers get a cut of the sellers’ profits and can sell advertising.
4. Nvidia who?
It’s a name investors have heard over and over. But off the shelf? Not that much. Nvidia has a valuation of more than $3 trillion and narrowly passed Microsoft last week to become the world’s largest company by market capitalization. But despite its historic rise in valuation, the company doesn’t have much name recognition. In fact, it doesn’t even make the 100 most iconic names on Interbrand’s latest list of most popular brands. Meanwhile, tech giants Apple, Microsoft, Amazon and Google were the top four global brands at the end of 2023. In particular, Nvidia’s rapid ascent in markets has been fueled by demand for artificial intelligence chips, mainly from a handful of very big buyers.
5. Drink this
The classic vodka soda has become the drink of choice and a cultural symbol for some gay men. Now, others are catching on. Its status in the modern LGBTQ+ zeitgeist has attracted the entrepreneurial attention of local bar owners and canned cocktail makers, among others. “It’s something you see everywhere,” said Lucas Hilderbrand, a professor of film and media studies at the University of California, Irvine. Big names like Boston Beer’s Truly brand and Kylie Jenner’s Sprinter line are jumping on the canned vodka soda trend, as is World of Wonder, the manufacturing company behind the reality competition show “RuPaul’s Drag Race,” which launched a “citrus vodka soda” canned cocktail earlier this year. Smaller startups like Gay Water, which was founded in July, also hope to stake their claim in the aisles and represent LGBTQ+ customers in stores.
– CNBC’s Samantha Subin, Brian Evans, Hugh Son, Melissa Repko, Kif Leswing and Alex Harring contributed to this report.
– Follow the broader market action like a pro CNBC Pro.
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