Stocks opened lower Monday but climbed into positive territory by the close. Investors' attention this week is trained on Wednesday's release of the May Consumer Price Index (CPI) report and the conclusion of the Fed meeting.
Today, though, the economic calendar was bare, so market participants turned to a raft of single-stock headlines hitting the wires.
Most notable was news that cybersecurity stock CrowdStrike (CRWD, +7.3), private equity firm KKR (KKR, +11.2%) and web domain firm GoDaddy (GDDY, +1.9%) will be joining the S&P 500 later this month. The trio will replace staffing company Robert Half (RHI, +1.5%), regional bank Comerica (CMA, -1.7%) and genetic sequencing firm Illumina (ILMN, -3.4%).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Stocks tend to get a lift from inclusion in the S&P 500 because many trillions of passive dollars are held in products that track the index," wrote Dan Burrows, senior investing writer at Kiplinger, in his coverage of the three stocks' inclusion in the S&P 500. "The bottom line is that loads and loads of passive funds and ETFs now have to pick up shares in CRWD, KKR and GDDY."
Noble to buy Diamond Offshore Drilling for $1.6 billion
Noble (NE) stock rose 6.1% after the oil drilling company agreed to buy Diamond Offshore Drilling (DO) for $1.6 billion in cash and stock, or $15.52 per DO share. DO, meanwhile, jumped 10.9%.
Noble's bid for Diamond continues a busy stretch of merger-and-acquisition (M&A) news in the oil patch that started last fall when Exxon Mobil (XOM, +0.3%) unveiled its $60 billion bid for Pioneer Natural Resources.
More recently, ConocoPhillips (COP, +1.2%) said it will buy Marathon Oil (MRO, +1.5%) for $17.1 billion.
Elliott takes a massive stake in Southwest Airlines
Southwest Airlines (LUV) stock was another big mover Monday, rallying 7.0% on news activist investor Elliott Investment Management accumulated a nearly $2 billion stake. According to The Wall Street Journal, Elliott plans to push for changes to reverse recent underperformance by the airline, including replacing current CEO Bob Jordan and overhauling the board of directors.
"The approach of an activist investor in Southwest Airlines is interesting at this juncture given that the company is investing capital to improve operations and lower costs," says Peter McNally, global sector lead for industrials, materials and energy at Third Bridge. "At least for the time being, it is hard to see what new strategy Southwest could pursue given that future growth is dependent on Boeing (BA, -0.06%) delivering more planes."
Apple tumbles on the first day of WWDC 2024
Apple (AAPL) stock slumped 1.9% – making it the worst Dow Jones stock today – as investors took in the first day of announcements from the company's annual Worldwide Developers Conference (WWDC).
Particularly noteworthy were the onslaught of artificial intelligence (AI) initiatives Apple unveiled. In addition to Apple Intelligence, its suite of AI offerings for its devices, the company also said it is teaming up with OpenAI to offer a ChatGPT function for its personal assistant Siri.
This year's WWDC is a key event for Apple "as the pressure to bring a generative AI stack of technology for developers and consumers is front and center with Cook & Co. set to make history for Cupertino," says Wedbush analyst Daniel Ives (Outperform, the equivalent of a Buy). "We believe AI technology being introduced into the Apple ecosystem will bring ample monetization opportunities on both the services as well as iPhone and hardware front."
Despite AAPL's down day, the Dow Jones Industrial Average rose 0.2% to 38,868 on strength in retailers Home Depot (HD, +1.7%) and Walmart (WMT, +1.6%). The S&P 500 added 0.3% to 5,360, while the Nasdaq Composite gained 0.4% to 17,192.
Related content
- Earnings Calendar and Analysis for This Week
- Want To Beat Stagflation? Invest Like It's the 1970s
- Is Investing In Gold Worth It? How Gold Prices Have Changed
-
Will Your State End Tax on Tips This Year?State Tax While President Trump spearheads federal talk on tips, several key states are considering ending taxes on tip income.
-
From wire fraud to fake listings, real estate scams are becoming more sophisticated. Discover how to protect yourself from common scams in 2025.Learn how to recognize and prevent the latest real estate scams.
-
Alternative Investments Under Trump: What You Need to KnowAs access to alternative markets opens up, retail investors looking to enhance their long-term financial outcomes have more opportunities to carefully consider.
-
Beware of TV/Billboard Personal Injury Law Firms: Here's WhyIf you or someone you know is tempted to hire a so-called settlement mill to handle a personal injury case, here are some reasons to reconsider.
-
How Small Businesses Can Clear the Economic Hurdles AheadShifting rules on taxes, trade and regulation are creating uncertainty for SMBs. Owners can overcome that by focusing on efficiency, flexibility and investment.
-
Stock Market Today: Dow Adds 353 Points Despite Soft Retail SalesInvestors and traders shake off another set of shaky economic numbers and send 10 of 11 sectors higher on Monday.
-
CoreWeave IPO: Should You Buy CRWV Stock?The CoreWeave IPO will mark the biggest public offering of the year, with the AI cloud company expected to start trading on the Nasdaq in late March.
-
Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% ReturnNvidia shareholders have had to stomach intense volatility over the years, but they have come out on top thanks to the AI chipmaker's bellwether status.
-
10 Tax Topics Every Retiree Should Know AboutA little knowledge can go a long way toward saving on your tax bill. Print this out and take it to your tax planner so you can have a productive chat.
-
It's No Surprise That Berkshire Hathaway's in the 100,000% Return ClubWarren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
