March 1, 2024, Nasdaq Market in New York City.
Michael M. Santiago | Michael M. SantiagoGetty Images
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.
What you need to know today
Nasdaq hits record high
this Nasdaq Index Closed above 17,000 points The first such move came on an otherwise gloomy day for markets, driven by a surge in Nvidia shares. this S&P 500 Index It rose slightly by 0.02%. this Dow Jones Industrial Average Stocks fell more than 200 points following hawkish comments from Minneapolis Fed President Neel Kashkari. The rate of return is 10-Year Treasury Bond Treasury prices rise after Treasury auctions $70 billion in 5-year bonds weak demand. oil price An increase of 3% compared with the same period last year OPEC+ meeting Scheduled for Sunday.
Fed’s Kashkari seeks more inflation data
The Fed should wait Significant progress on inflation Kashkari told CNBC on Tuesday before cutting interest rates. When asked about the conditions needed for a rate cut this year, Kashkari said, “I think we need to see more months of positive inflation data to convince me that a rate cut is appropriate.” He emphasized that if the rate cut is passed, If the inflation does not subside, the central bank may even consider raising interest rates. “I don’t think we should rule anything out at this point,” he added.
American Airlines slashes outlook
shares American airlines The company fell more than 8% intraday after the bell. Sharply lowers second quarter sales forecast. The airline also said its chief commercial officer Vasu Raja will leave the company next month. Raja has recently been on leave, and a spokesman for the airline said last week he would not be leaving. That changed after internal discussions over the past few days, according to a person familiar with the matter.
GameStop surges
shares game station The video game retailer’s stock price rose more than 20% after the announcement. Raised $933 million from equity issuance. stock sale plan The announcement came amid a resurgence of meme stock craze earlier this month. Previously, “Roaring Kitty” published a post on social media related to the 2021 GameStop short squeeze. The account has been idle for nearly three years.
Asia-Pacific markets mostly lower
Australian S&P/ASX 200 Index The index fell 1.2% on stronger-than-expected April inflation data, showing The central bank may not cut interest rates This year. Japan’s Nikkei 225 IndexKorean Cospi and Hong Kong Hang Seng were lower. Mainland China’s CSI 300 Index rose 0.38% after the International Monetary Fund’s announcement Increased growth forecasts for the country Growth this year rose to 5% from 4.6%, thanks to “strong” first-quarter data and recent policy measures.
(PRO) Riding the Artificial Intelligence Boom
CNBC’s Todd Gordon analyzes Cyber Security Company This could benefit from investor enthusiasm for AI-related stocks. One analyst predicts the company’s market value could increase by $25 billion.
bottom line
Texas Instruments The company has become the latest company to be targeted by activist investor Elliott. Holds $2.5 billion worth of shares among wafer manufacturers. Elliott is pushing for changes in how Texas Instruments manages its free cash flow.
Activism has long been an integral part of Wall Street’s approach to influencing change in corporate decision-making. In one of the earliest examples, Benjamin Graham successfully pressured Northern Pipeline CompanyA subsidiary of Standard Oil that returned cash to shareholders in the 1920s. Another oil company is now facing criticism for its response to activism.
Exxon Mobil is facing charges of “intimidation” and “school bullying” from the $484 billion California Public Employees Retirement System (CalPERS). The confrontation came to a head at today’s ExxonMobil shareholder meeting, where CalPERS said public announcement It intends to vote against all 12 ExxonMobil director nominees and Chief Executive Officer Darren Woods. CalPERS isn’t the only one expressing displeasure with the oil giant.
ExxonMobil’s troubles began when it took legal action against two activist investors, Arjuna Capital and Follow This, who filed a shareholder proposals Calls for tougher emissions targets. although Withdraw proposall After taking legal action, ExxonMobil stood by its case, telling the Financial Times that climate campaigners were “aimingfinancially harmedExxonMobil claimed in a statement to CNBC that Arjuna and Follow This sought to “suppress the voices of up to 90% of voting shareholders who have rejected the proposal twice.”
CalPERS, which holds $1 billion in Exxon shares, argued Exxon could have sought compensation through the U.S. Securities and Exchange Commission, which has approved two-thirds of similar claims. The pension fund further stated that, Litigation can have devastating consequences For shareholder rights.
“If ExxonMobil succeeds in silencing voices and subverting the rules of shareholder democracy, what other topics would any company leader prohibit?” CalPERS CEO Marcie Frost and Board Chair Theresa Taylor said in an open letter. “Worker safety? Executives overpaid?”
CalPERS called the lawsuit reckless and urged directors to stop Woods from pursuing such a “destructive effort.” They also called on other shareholders to join them in “sending the message that our voices will not be silenced”.
— CNBC’s Rohan Goswami, Alex Harring, Pia Singh, Leslie Josephs, Jenni Reid, Spencer Kimball, MacKenzie Sigalos, Todd Haselton, Sean Conlon and Sophie Kinderlin contributed to this report.
About The Author
