May 30, 2024

U.S. stocks started the week on a quiet but positive note as a slew of companies prepare to release quarterly earnings. The list of companies reporting earnings this week includes Apple, Amazon, Advanced Micro Devices, Super Micro Computer, MicroStrategy, Coinbase, Novo Nordisk, McDonald’s, and Coca-Cola.

Meanwhile, the Federal Open Market Committee will make its next decision on interest rates on Wednesday, followed by the release of the monthly jobs report on Friday.

The Dow Jones Industrial Average edged up 77 points, or 0.2%, to 38,318 shortly before markets closed. The S&P 500 and the Nasdaq were both up slightly.

Tesla stock soars as Elon Musk gets a needed win in China

After Elon Musk made a surprise visit to China on Sunday, Tesla has reportedly overcome a major hurdle in its goal to introduce its driver assistance technology in the world’s largest auto market.

Chinese authorities on Sunday tentatively approved Austin, Texas-based Tesla’s plan to launch its Full Self-Driving (FSD) technology in the country, according to multiple media reports. The rollout hinges on a newly-signed agreement with Chinese technology giant Baidu and Tesla’s efforts to meet requirements for how it handles data security and privacy issues.

Tesla stock jumped more than 14% Monday, helping Musk overtake Amazon’s Jeff Bezos again in the rankings of richest people on Earth.

Apple stock jumps on Bernstein upgrade

Bernstein upgraded Apple stock from Market Perform to Outperform on Monday morning, help sending its stock higher. Bernstein maintained its $195 price target on the shares, which is 15% higher than the current pirce.

Apple is due to release its quarterly earnings on Thursday. Apple stock was up about 3% in the late afternoon.

Paramount stock jumps as its CEO might be heading for the door

Paramount Global stock rose following news that the company might oust Bob Bakish as CEO before its quarterly earnings report Monday after the markets close. Bakish’s potential departure comes as Paramount Global and Skydance Media are close to a merger agreement. Shari Redstone, who owns 77% of Paramount’s voting rights, is now open to a “majority of the minority” vote on a Skydance merger deal, allowing common shareholders to vote on the company’s future, CNBC reports. 

Paramount stock was up about 2.5% shortly before markets closed.

Philips stock jumps over 26%

Philips stock soared almost 26% in the late afternoon after the Dutch medical device maker announced it has agreed to pay $1.1 billion to resolve personal injury litigation and a medical monitoring class action lawsuit related to its ongoing recall of sleep apnea machines.

“The approved consent decree and economic loss settlement, and now the resolution of the personal injury and medical monitoring litigation in the U.S., are significant milestones and provide further clarity on the way forward for Philips,” the company said in its first quarter earnings report. As part of the deal, Philips did not “admit any fault or liability.”

SoFi stock falls on weak guidance

SoFi Technologies reported better-than-expected first-quarter revenue and income but provided disappointing second-quarter guidance. The fintech company exceeded Wall Street’s earnings expectations by reporting earnings of 2 cents per share, instead of the expected 1 cent. Adjusted net revenue for the quarter surpassed analysts’ consensus call, reaching $580.65 million, compared to the expected to $555 million.

In its earnings report, SoFi predicted adjusted revenue of $555 million to $565 million for the second quarter. Analysts predicted $581 million in revenue for the same period.

SoFI stock was down about 10% in the late afternoon.

Other tech and AI stocks edge down

Some Big Tech and AI stocks went in reverse to start the day. Google parent Alphabet, Meta, and Nvidia all suffered declines of 3.3%, 3%, and 0.75%, respectively.

But Super Micro Computer, which is set to release its earnings report Tuesday, was up 3.3% in the late afternoon.

Bitcoin falls below $63,000

Bitcoin prices dropped below $63,000 in the late afternoon as investors come to terms with the likelihood that the Federal Reserve won’t cut interest rates anytime soon and stagflation fears rise.

The top cryptocurrency was down 2% to $62,000, followed by Ether, which dropped 4.5% and hovered around $3,100. Dogecoin and Solana were also down, with more than 6.7% and 5.7% drops, respectively, according to CoinMarketCap.

-William Gavin and Bruce Gill contributed to this article

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