Dow, S&P 500 advance as Nvidia continues to slide

Apple and Meta in focus after reportedly discussing Generative AI Partnership

53 minutes ago

iPhone maker Apple ( AAPL ) has held discussions with its big tech rival Meta Platforms ( META ) to integrate parent Facebook’s generative artificial intelligence (AI) model into its own custom AI system, Apple Intelligence. recently announced. The Wall Street Journal reported on Sunday.

Such a deal would allow Meta to tap into Apple’s wide reach of users through its iPhones, similar to how software companies gain exposure to millions of potential customers through the tech giant’s App Store .

Apple, which recently partnered with ChatGPT owner OpenAI and said it wants to integrate with Google’s Gemini, has also discussed adding generative AI technology developed by startups Anthropic and Perplexity to Apple Intelligence, the people said. familiar with the discussion. diary, adding that the talks with Meta have not been finalized and may fail.

While the 50-day moving average crossed above the 200-day MA to form a bullish golden cross pattern around the same time that Apple shares broke out to a new record earlier this month, the price has rebounded recently, increasing the likelihood of further weakness. this week.

Looking ahead, investors should monitor the key level of $197, an area where the price finds support from a horizontal line connecting several prominent peaks over the past eleven months.

Since falling more than 10% following the release of weak earnings guidance in late April, Meta shares have continued to trend largely higher, closing the gap and climbing above the 50-day MA.

If the stock moves lower, investors should keep an eye on the $446 level, an area where price could find buying interest around a multi-month horizontal line. Conversely, a bullish move could encounter selling pressure near the stock’s all-time high (ATH) set in early April at $531.49.

Apple shares rose almost 2% and are up about 10% this year; Meta shares are 1% higher, taking its year-to-date gain to more than 40%.

–Tim Smith

RXO grows after buying logistics unit Coyote from UPS for more than $1 billion

1 hour and 24 minutes ago

Shares of RXO ( RXO ) rose in intraday trading on Monday, a day after the package delivery firm bought Coyote Logistics, the third-party light freight brokerage unit of United Parcel Service (UPS), for 1.025 billion dollars in cash.

RXO said the addition of Coyote will create the third largest brokered transportation provider in North America. The company noted that the deal will be “immediately and significantly accretive to RXO’s diluted adjusted earnings per share and adjusted free cash flow.”

Chief Executive Officer (CEO) Drew Wilkerson explained that the acquisition “will increase the number of customers doing more than $1 million in business with us by approximately 80%. He added that RXO would have “immediate and long-term growth opportunities income and profits”.

The transaction is expected to be completed by the end of the year.

The news sent RXO shares up more than 18%, though they are only up 3% in 2024. UPS shares rose 1%.

–Bill McCall

Nvidia stock in spotlight after falling from record high

2 hours and 10 minutes ago

Artificial intelligence (AI) chip maker Nvidia ( NVDA ) remains in the spotlight as shares fell from their record high on Thursday.

Despite little company-specific announcements late last week, investors may have used a rare moment of broad market weakness to take profits after the stock’s meteoric rise this year amid the AI ​​boom.

Since finding support around its 50-day moving average in April of last year, Nvidia shares have been trailing sharply higher, with investors seeing any dip as a buying opportunity. However, Thursday’s intraday reversal from their all-time high (ATH) created a sliding pattern, a candlestick formation that warns of a potential bearish reversal, especially after a significant price advance.

If Nvidia’s price continues to rally this week amid a shift in sentiment, investors may keep an eye on chart levels around $119 and $110, both areas where the stock could find support from small pullbacks over the past three weeks. A failure to hold these key regions could see shares revisit a horizontal line near $97 that connects several previous record highs.

Shares of Nvidia fell almost 4% in early trading on Monday, but remain up more than 145% so far this year.

–Tim Smith

Stock futures mixed in premarket trading

2 hours and 49 minutes ago

Futures tied to the Dow Jones Industrial Average rose 0.2% in premarket trading on Monday.

S&P 500 futures were little changed.

Nasdaq 100 futures fell 0.2%.