CNBC Daily Open: Are markets overly optimistic?
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here .
Market record highs
The S&P 500 and the Nasdaq Composite ended the session at all-time highs as investors waited for inflation data to assess the U.S. monetary policy path. Apple continued its winning streak with a fifth consecutive record close and Nvidia also saw gains. However, the Dow Jones Industrial Average dipped slightly. The yield on the 10-year Treasury was little changed, while U.S. oil prices fell as Tropical storm Beryl made landfall.
Elliott proxy fight threat
Activist investor Elliott Management has threatened a proxy fight with Southwest Airlines unless its board agreed to negotiate leadership changes.Elliott seeks to oust CEO Bob Jordan and Executive Chairman Gary Kelly, citing underperformance and cultural issues. The investor claims the board's recent actions, including adopting a poison pill and expanding the board, are "entrenchment maneuvers." While open to collaboration, Elliott plans to give shareholders a say in leadership changes if the board remains unresponsive.
Corning's AI pop
Corning's stock surged 12% on Monday, its biggest jump since March 2020, after the company raised its second-quarter forecast. Corning attributed the growth to increased demand for its optical connectivity products, which support generative AI networks. "We've invented new fibers, new cables, new connectors and new custom integrated optical solutions to dramatically reduce installation costs, overall time and space and carbon footprint," Corning CEO Wendell Weeks said on CNBC's "Squawk Box."
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