Dow Jones slips as S&P 500, Nasdaq edge back from records

What’s driving markets

There’s a busy slate of events on tap for this week as investors look to see whether anything can derail the rally. Powell will be on Capitol Hill this week for two days of congressional testimony, while the nonfarm payrolls report gets released on Friday.

See: Stock rally, rate-cut forecasts face test from Powell testimony and jobs report

“If the S&P 500 is going to make this the eighth-straight week it hits an all-time high, it will likely need to hear encouraging words from Fed Chair Jerome Powell about rate cuts in his two days of congressional testimony, and avoid any major surprises from this week’s jobs data,” said Chris Larkin, managing director for trading and investing at E-Trade from Morgan Stanley, in an email.

”The Fed has said it doesn’t need to see a significantly weaker labor market to cut rates, but if the numbers come in too hot, it could renew concerns about delays, at least temporarily,” he said.

Bank of America became the latest Wall Street firm to lift its price target, now seeing a year-end level of 5,400 for the S&P 500. The increase nonetheless was accompanied by a warning that the likelihood of a near-term pullback is high.

It’s more than just U.S. stocks rallying: Bitcoin
BTCUSD,
+5.74%
surged past $65,000 and the Nikkei 225
JP:NIK
zoomed past 40,000, while gold
GC00,
+1.45%
drifted lower after ending Friday at a record high.

Companies in focus

• JetBlue Airways Corp.
  JBLU,
  +1.92%
  and Spirit Airlines Inc.
  SAVE,
  -15.01%
  said Monday they have reached an agreement to terminate their July 2022 merger agreement, weeks after a federal judge said the $3.8 billion deal would reduce competition and hurt passengers. Spirit shares slumped 12.2%, while JetBlue shares rose 1.5%.

• Macy’s Inc.
  M,
  +15.49%
  shares were up more than 14% at $20.64 after investment firm Arkhouse Management and asset manager Brigade Capital Management boosted their bid for the department-store chain by nearly $1 billion to $6.6 billion. They raised their buyout proposal to $24 a share from $21, representing a 33% premium to Friday’s closing price at $18.01.

• Shares of New York Community Bancorp
  NYCB,
  -11.69%
  fell more than 11%. Moody’s Inc. delivered its second debt downgrade in a month, citing the bank’s exposure to stressed loans for rent-controlled multifamily apartments and office space.

• The European Union fined Apple Inc.
  AAPL,
  -3.10%
  nearly $2 billion for breaking the bloc’s competition laws by unfairly favoring its own music streaming service over rivals. Apple shares fell 2.9%.

• Shares of data-server provider Super Micro Computer Inc.
  SMCI,
  +26.14%
  and footwear maker Deckers Outdoor Corp.
  DECK,
  +2.51%
  jumped higher, after S&P Dow Jones Indices late Friday said the companies would replace Whirlpool Corp.
  WHR,
  -0.22%
  and Zions Bancorp
  ZION,
  +1.65%
  in the S&P 500 beginning March 18.