Key Takeaways
- U.S. equities closed down on Friday, June 16, 2023, but gained for the week on optimism about inflation and the Fed ending its interest rate hike cycle.
- Ball Corporation shares jumped on a report the firm was considering selling its aerospace unit.
- After doubling on their first trading day, shares of CAVA Group tumbled.
U.S. equities ended the day lower but posted a winning week following reports showing that inflation is slowing, and on indications that the Fed may be close to ending its interest rate hike cycle. The markets also were impacted by today’s quadruple witching, and the long weekend ahead because of Monday’s Juneteenth holiday.
Ball Corporation (BALL) was the best-performing stock in the S&P 500 on a report the company was looking to sell its aerospace unit for more than $5 billion. Domino’s Pizza (DPZ) and Corning (GLW) shares gained for a second consecutive day after getting analyst upgrades. Adobe’s (ADBE) shares gained as the maker of Photoshop and other creative software became the latest firm to say its sales are being lifted by excitement over artificial intelligence (AI).
Tesla (TSLA) shares resumed their climb and closed higher than when their record-setting winning streak ended earlier this week. Shares of iRobot Corporation (IRBT) skyrocketed when regulators in the U.K. cleared Amazon’s (AMZN) $1.7 billion purchase of the Roomba maker. Shares of Virgin Galactic (SPCE) took off as the space tourism firm founded by billionaire Richard Branson announced it plans to launch its first commercial flight this month.
Humana (HUM) shares dipped as the health insurance provider joined UnitedHealth Group (UNH) in warning about rising costs for coverage of surgeries. Shares of Steel Dynamics (STLD) sank after the steel products manufacturer gave a second quarter outlook that missed estimates. Walt Disney (DIS) shares tumbled as CFO Christine McCarthy suddenly left the entertainment giant amid reports that she had conflicts with CEO Bob Iger. CAVA Group (CAVA) shares reversed course, plunging 12% after doubling on their first day of trading yesterday.
Oil futures rose. Gold prices were down. The yield on the 10-year Treasury note advanced. The U.S. dollar was up versus the euro and yen, but lost ground to the pound. Most major cryptocurrencies traded solidly in the green.