Market Monitor News June 10 (Qualcomm, Tesla UP - Apple, Warner Bros. Discovery DOWN)

Wall Street Edges Up Amid US-China Trade Talks and Corporate Shakeups

A Quiet but Watchful Day on Wall Street

U.S. stock markets closed Monday's session with modest gains as investors kept a close eye on trade negotiations between the United States and China, which resumed in London.

The Dow Jones remained flat, while the Nasdaq added 0.3%. The S&P 500 posted a slight gain of 0.1%, inching closer to its all-time high reached in February.

Optimism surrounding potential progress in the trade talks helped support sentiment. The discussions focus on mutual concessions: the U.S. is reportedly considering easing tech export restrictions, while China may lift its controls on rare earth metal exports, essential for sectors like electric vehicles and semiconductors.

Kevin Hassett, Director of the U.S. National Economic Council, said he expects a "short meeting with a firm handshake" and hinted that a resolution on rare earth exports and semiconductor access may come soon.

Apple Falls on AI Disappointment

Tech giant Apple (AAPL | -1.21%) faced investor disappointment during its annual WWDC developer conference. The event lacked major announcements regarding artificial intelligence, an area where Apple is perceived to lag behind rivals.

The highlight was a new “Liquid Glass” interface for iOS that adapts visually based on the phone’s environment, but this wasn’t enough to excite the market.

Qualcomm Bets on AI with Alphawave Deal

Chipmaker Qualcomm (QCOM | +4.13%) surged after announcing a $2.4 billion acquisition of London-based Alphawave. The move is aimed at bolstering its presence in AI and data centers, two rapidly expanding markets in the semiconductor industry.

While some analysts questioned the necessity of a full acquisition, suggesting licensing could have sufficed, others applauded the strategic ambition.

Warner Bros. Discovery’s Split Falls Flat

Media giant Warner Bros. Discovery (WBD | -2.95%) opened sharply higher after announcing plans to split into two separate entities. One will house traditional TV networks like CNN and TNT under the name Global Networks, while the other will manage streaming services and studios as Streaming & Studios.

Despite initial enthusiasm, shares reversed course and closed lower as doubts emerged over whether the breakup would truly unlock shareholder value.

Mixed Fortunes for Other Movers

Tesla (TSLA | +4.55%) rebounded despite lower May sales in China. Last week, the stock dipped amid tensions between CEO Elon Musk and president Trump, but sentiment appeared to stabilize over the weekend.

Robinhood Markets (HOOD | -1.98%) and AppLovin (APP | -8.21%) were hit (hard) after both companies missed inclusion in the latest S&P 500 quarterly reshuffle, marking the first time since March 2022 that no new additions were made to the index.

Meanwhile, EchoStar (SATS | -8.52%) plunged following reports that the satellite firm may be preparing a bankruptcy filing to protect its spectrum licenses from potential federal revocation.

Shares from the aerospace sector rose as investors began to speculate that the feud between Trump and Musk could lead to more opportunities for other aerospace companies.

• Spacemobile (ASTS | +11.64%) surged 12%.
• Rocket Lab (RKLB | +2.49%) closed +2.5%.

Macro Data and Commodities

Wholesale inventories in the U.S. rose by 0.2% in April, slightly above expectations, pointing to resilient supply chains. Attention now turns to inflation data due later in the week, including the Consumer Price Index (CPI) on Wednesday and Producer Price Index (PPI) on Friday.

Additionally, a new reading of consumer sentiment from the University of Michigan is expected Friday.

• In commodities, WTI crude oil gained 0.4% to $64.84 per barrel.

• Gold held steady near $3,350 per troy ounce, but silver stood out, climbing to $36.70, its highest level since 2012. Market watchers cited a weaker dollar, debt concerns, and trade uncertainty as driving safe-haven demand.

• U.S. 10-year Treasury yields dipped 3 basis points to 4.48%, while the dollar edged up to 1.1425 against the euro.

Outlook

With the earnings season nearly over and key inflation figures on deck, markets are in a wait-and-see mode.

Upcoming results from Gitlab (GTLB | -0.27%) - june 10, Oracle (ORCL | +1.8%), june 11, Adobe (ADBE | -0.16%) - june 12 will likely add more color to the state of corporate America in the coming days.

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Next to read: ChartMill Market Monitor Trends & Breadth Analysis, June 10