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Key things

  • Markets on Monday June 12, 2023 gained on expectations that the Fed may hold off on raising interest rates at its meeting this week.
  • Cruise Lines acquired through analyst upgrades with Carnival Corporation (CCL) shares rise sharply. Bank of America also raised its price target on Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Group (RCL), and these stocks rose.
  • Tesla won a 12th straight session as several electric vehicle (EV) charging station companies said they would offer Tesla-compatible devices.

U.S. stocks rallied on growing optimism that the Federal Reserve will announce at its meeting this week that policymakers will pause their aggressive streak of interest rate hikes starting in March 2022. The S&P 500 rose to a 13-month high.

It was a big day for cruise stocks with Carnival Corporation (CCL) shares soared as both Bank of America and JPMorgan upgraded the stock and raised their price targets. Bank of America also raised its price target on Norwegian Cruise Line Holdings (NCLH) and Royal Caribbean Group (RCL), and these stocks rose. Oracle (ORCL) shares jumped after an upgrade from Wolfe Research. Shares of semiconductor companies, including Intel (INTC) and Broadcom (AVGO), Advanced.

Tesla (TSLA) shares gained for a 12th straight session as several electric vehicle (EV) charging station companies said they would offer Tesla-compatible devices. Chinook Therapeutics (KDNY) shares skyrocketed as Novartis (NVS) said it would pay up to $3.5 billion for the biopharmaceutical. After a long delay Catalent (CTLT) released its fiscal third-quarter results, and shares soared as the contract drugmaker’s sales beat estimates.

Regional banks dominated the list of best-performing stocks in the S&P 500, led by KeyCorp (KEY), whose shares fell by almost 5%. However, the index performed the worst Nasdaq (NDAQ), which announced the purchase of risk management and regulatory software maker Adenza for $10.5 billion. The report also dragged down shares of the International Exchange (ICE), CME Group (CME), Cboe Global Markets (CBOE) and Marketaxess Holdings (MKTX).

The prospect of a Fed rate freeze sent oil futures tumbling, dragging down shares of Chevron (CVX) and other oil producers. Kellogg (TO) shares lost ground on concerns that the cereal maker’s participation in the Tony Awards could spark a consumer boycott. Action target (TGT) was dropped for the 15th time in the last 17 due to a marketing controversy.

Gold prices fell. The yield on the 10-year Treasury note was little changed. The US dollar strengthened against the pound and the yen, but fell against the yen. Most major cryptocurrencies were trading lower.

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