CNBC Daily Open: Are markets too optimistic? | Wilnesh News

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Market hits record high
this S&P 500 Index and Nasdaq Index The session ended at a record high as investors awaited inflation data to assess the path of U.S. monetary policy. apple Continuing winning streak, breaking record for fifth time in a row Nvidia I also saw the gains. But, that Dow Jones Industrial Average A slight decrease. 10-Year Treasury Bond Yield Ministry of Finance Not much has changed, but US oil prices fall down When Tropical Storm Beryl made landfall.

Elliott proxy fight threatens
Activist investor Elliott Management Threatening proxy fight and Southwest Airlines Unless the board agrees to negotiate leadership changes. Elliott is seeking to oust Chief Executive Bob Jordan and Executive Chairman Gary Kelly, citing poor performance and cultural issues. Investors allege recent actions taken by the board of directors, including taking poison pill and Expand the board of directors, is a “trench exercise.” While open to collaboration, Elliott plans to give shareholders a say in leadership changes if the board remains unresponsive.

Corning’s AI epidemic
CorningThe company’s shares soared 12% on Monday, their biggest gain since March 2020, after Raise second-quarter forecast. Corning attributed the growth to increased demand for its optical connectivity products that support generative artificial intelligence networks. Corning CEO Wendell Weeks said on CNBC: “We have invented new optical fibers, new cables, new connectors and new customized integrated optical solutions that can significantly reduce installation costs and overall time. and space and carbon footprint.scream box“.

German Bitcoin selloff
The German government has Hundreds of millions of dollars worth of Bitcoin dumped, leading to the cryptocurrency’s recent price decline. Police in Saxony, eastern Germany, seized nearly 50,000 Bitcoins in mid-January, worth approximately $2.2 billion at the time of the seizure. Despite selling $379 million worth of Bitcoin in recent weeks, Germany’s Federal Criminal Police Office still holds approximately 32,488 Bitcoins Bitcoin — worth about $1.9 billion at today’s prices.

Boeing plea agreement
boeing company have Agree to plead guilty to criminal fraud Related to fatal 737 Max crashes. The plea deal, which is awaiting court approval, would label Boeing a felon but allow it to avoid a trial. The company will likely pay a $243.6 million fine and have its operations monitored by an independent compliance monitor for three years. The conviction could affect Boeing’s ability to sell products to the U.S. government, although it may seek exemptions.

(PRO) Beryl’s Risk
Tropical Storm Beryl makes landfall in Texas, heightening concerns about the upcoming hurricane season and prompting Wall Street analysts to pay close attention Insurance stocks with the most potential Future storm damage.

as S&P 500 Index John Stolzfus, chief investment strategist at Oppenheimer, continues to surge, hitting its 35th all-time high this year. Raise S&P 500 target to 5,900 –Second highest on Wall Street. However, a sense of caution is brewing. Goldman Sachs trader Scott Rubner attended market correction alert. He thinks the market, including himself, is too optimistic.

Rubner is not alone in his concerns. Investors are increasingly questioning large investments in artificial intelligence. Roger McNamee, managing director of Elevation Partners, warned that investors may want to find “safe landing site“Because the end use of artificial intelligence may not justify the investment.

“I think Microsoft is investing about $10 billion a month in data centers and the industry as a whole is investing about $15 billion. We would need something closer to $600 million in revenue to justify the amount of money invested,” Mike said. Nami said.

“We’re making assumptions about what this technology can do, but we haven’t proven it yet, and we’re applying it in places where it might not work. If that’s true, the frenzy will be over, and the biggest stock S&P 500 index stocks will be severely affected.

Ed Yardeni, president of Yardeni Research, describes the market as “slow motion melting” investors Yardeni said he seemed confident that the Fed would quickly lower interest rates if the economy slowed significantly or entered a recession.

The direction of the market may become clearer this week, with Federal Reserve Chairman Jerome Powell testifying before Congress on Tuesday and Wednesday and important inflation data on Thursday, which could affect interest rate expectations.

Former Dallas Fed President Robert Kaplan expects the Fed to Rate cut in September.

“If I were in my previous seat, I would be ready to lower rates in September,” Kaplan said Monday on CNBC’s “Squawk Box.” “I’m not making any promises between now and then. , but I think they will cut rates in September and then they will take one meeting at a time.”

—CNBC’s Jeff Cox, Brian Evans, Pia Singh, Scott Schnipper, Leslie Josephs, Katie Bartlett, Ryan Browne, Fred Imbert, Spencer Kimball and Rohan Goswami contributed to this report.