CNBC Daily Open: May the good times roll

Dow's 11-day streak
Major U.S. banal indexes ended Monday successful the green, with the Dow Jones Industrial Average notching an 11-day winning streak. The pan-European Stoxx 600 advanced 0.06%, led by a 1.5% emergence successful lipid and state stocks. But concern enactment successful the euro portion and U.K. is slowing down, according to flash estimates.

Ex-Twitter
Twitter rebranded to "X" and dumped its iconic vertebrate logo. The modulation from Twitter to X is portion of proprietor Elon Musk's imaginativeness to crook the level into an "everything app" that is "centered successful audio, video, messaging, payments/banking," according to CEO Linda Yaccarino's tweet — atrocious — "x," successful the brand's caller parlance for abbreviated messages. Analysts aren't convinced by the move.

Busy week for cardinal banks
The U.S. Federal Reserve, the European Central Bank and the Bank of Japan volition each announce involvement complaint decisions this week. Analysts are expecting the Fed to hike rates by 25 ground points; the ECB to rise rates by 25 ground points arsenic well; and the BOJ to support its ultra-loose monetary argumentation intact. However, the cardinal banks could pivot astatine the gathering pursuing this week's.

China's 'tortuous' recovery
China's Politburo, the apical decision-making assemblage of the Chinese Communist Party, met Monday and pledged to "adjust and optimize policies successful a timely manner" for its spot sector. Acknowledging the country's disappointing economical data, the Politburo said "the system is facing caller difficulties" and that the economical betterment volition beryllium "tortuous" — though it didn't denote immoderate large stimulus.                                  

[PRO] No motion of recession
Steve Eisman, the capitalist who called and profited from the 2008 subprime owe crisis, told CNBC helium thinks "there's nary grounds of a recession" truthful far. Thus, the banal marketplace tin proceed climbing — this is however he's playing the market.

The banal marketplace continues to look beardown arsenic each 3 large indexes roseate Monday. The S&P 500 climbed 0.4%, the Nasdaq Composite added 0.19% and the Dow Jones Industrial Average gained 0.52%.

The Dow notched 11 consecutive time of gains, its archetypal successful six years, which gave it its highest adjacent since February 2022. To enactment into position however awesome that feat is, the Dow has achieved an 11-day rally — oregon longer — lone six times since 1945, according to Paul Hickey, co-founder of Bespoke Investment Group. That's little than erstwhile a decade.

Stocks were fired up by the vigor sector, which roseate 1.7% aft lipid and state futures jumped to a three-month high. Goldman Sachs expects adjacent higher prices arsenic "demand reaches an all-time high" successful the 3rd 4th of the year, echoing a warning by the International Energy Agency.

In different denotation markets are buoyant, meme stocks look to beryllium back. The Roundhill Meme ETF has gained astir 60% twelvemonth to date, suggesting investors are feeling assured capable to determination wealth into stocks driven by sentiment and speculation.

Small-cap stocks mightiness beryllium the adjacent to rally, if Canaccord Genuity's prediction proves right. In a enactment to clients, strategist Tony Dwyer said the Russell 2000 Index appears to beryllium hitting a bottommost comparative to the S&P — which means it could commencement rising soon — particularly fixed the costly valuation of the apical stocks successful the broader index. Indeed, the Russell 2000 closed supra its 200-day moving average, typically a motion that there's affirmative momentum down the movement.

With 40% of the Dow and 30% of the S&P reporting net this week, we'll get a clearer consciousness of whether capitalist enthusiasm tin last. Alphabet, Microsoft and Visa footwear disconnected net aboriginal contiguous — but support an oculus connected PacWest Bancorp for immoderate signs of weakness successful determination banks. For the smaller banks that person already reported past week, though, things look unchangeable truthful far. May the bully times roll.