Apple Throws Their Developer Party

Key Takeaways

• Markets Making New Highs
• Apple Hosts WWDC Today
• Oil Trading Higher

Last week, stocks added to what has been a strong start to the summer. The S&P 500 and Nasdaq Composite both gained nearly 2%. Apple
AAPL
, Amazon
AMZN
, Facebook and Netflix
NFLX
all posted solid gains, helping to push both indices to a new yearly high.

Shares of Apple are closing in on new all-time highs. Its prior closing high was $182.01 and in premarket, shares are indicated just under $183. Apple will host their World Wide Developers Conference today where the company is expected to unveil new operating software for both Mac and iOS. But the more anticipated announcement surrounds the company’s entry into virtual reality and a new headset expected to cost $3,000.

Other stocks making news this morning include Dish Network and Palo Alto Networks
PANW
. At the end of this month, the S&P 500 will rebalance and Palo Alto Networks will be replacing Dish. In premarket trading, shares of Dish are down about 3% while Palo Alto shares are indicated higher by nearly 5%. The replacement of Dish comes following a story that Amazon is currently exploring offering Prime members low cost or potentially free mobile phone service. Amazon is reportedly in talks with Verizon Communications
VZ
, T-Mobile and Dish.

Elsewhere, oil is trading higher by over 2.5%. Over the weekend, Saudi Arabia said they would cut oil production by 1 million barrels a day. Those cuts will be in addition to previously announced cuts which are scheduled to end in 2024.

We’re just a little over a week away from the next Federal Reserve Open Market Committee meeting. Last Friday’s employment report was the last big report until next week’s CPI, which likely comes too late to impact any decision on rates. As of now, there is a 76% chance rates will stay the same and 24% chance of a quarter point hike.

As we get deeper into June and the summer, markets can slow down a bit and volume may subside as well. Most schools get out this week or next (go ahead teachers, run through the empty halls celebrating, you earned it) kicking off summer vacation season. However, it’s when things get quiet that little surprises tend to have outsized impact. Therefore, as always, I would stick with your investment plan and long term objectives.

tastytrade, Inc. commentary for educational purposes only. This content is not, nor is intended to be, trading or investment advice or a recommendation that any investment product or strategy is suitable for any person.