Stocks Rise to Begin Important Week of Earnings and Economic Data; Dow Ends 5-Day Losing Run, Markets News, October 28, 2024
U.S. Stocks Climb as Big Tech Earnings : Major U.S. market indexes increased Monday as investors braced for a barrage of big company earnings reports and the release of several crucial economic indicators in the days ahead. Technology large-cap companies saw mixed results on Monday.
Microsoft (MSFT) and Nvidia (NVDA), two AI investor favorites, fell as Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), and Broadcom (AVGO) all gained ground. Following an EV manufacturer’s better-than-expected earnings report, Telsa (TSLA) shares dropped 2.5 percent after rising 25 percent over the previous two sessions.
Crude prices dropped more than 5% on Monday, while shares of oil and oilfield services businesses lost momentum as Israel’s most recent strike on Iran missed vital infrastructure. The stock prices of Halliburton (HAL), ConocoPhillips (COP), Diamondback Energy (FANG), and ExxonMobil all closed down. Amidst the possibility of reduced gasoline prices, American Airlines (AAL), Delta (DAL), and United (UAL) all saw increases of over 2%, while Carnival (CCL) had a 4.8% increase in its shares.
As market investors reassess their expectations regarding the likelihood of the Federal Reserve reducing its benchmark lending rate, the yield has been increasing in recent weeks. Bitcoin increased to almost $69,500, its highest price of the day, while gold futures hardly moved, closing at about $2,755 late Monday.
By other measures, earnings have been mediocre.
So far this season, corporate earnings are falling short of a significant historical norm. With roughly 25% of the S&P 500, including five of the wildly successful Magnificent Seven businesses, scheduled to release earnings this week, that may change. by FactSet Research data. Overall, profits have fallen more than two percentage points short of projections and exceeded expectations by about 6%.
According to John Butters, senior earnings analyst at FactSet, the S&P 500 as a whole increased earnings by 3.6% in the most recent quarter. Although it would be the weakest growth rate of any of those quarters, it would be the fifth straight quarter that the benchmark index has grown.
Today’s Wall Street: US stocks rise before Big Tech’s earnings
Monday saw a surge in Wall Street stocks ahead of Big Tech earnings and the last round of the US presidential election on November 5. By 10 am Eastern time, the S&P 500 had increased 27.49 points, or 0.47 percent, to 5,835.61, the Nasdaq Composite had increased 107.00 points, or 0.58 percent, to 18,625.61, the Dow Jones Industrial Average had increased 298.63 points, or 0.71 percent, to 42,413.03. In anticipation of its findings later in the week, Alphabet’s stock increased 1%, Meta Platforms’ climbed 0.8%, and Microsoft’s increased 0.3%.
This week, Amazon.com and Apple will also release their earnings Morgan increased their price target to 3M, causing the stock to climb 3.5%.
The Bullion
Monday saw a decline in gold prices due to increased Treasury yields and a stronger US currency.
By 12:30 GMT, spot gold had dropped 0.5% to $2,732.98 an ounce. US gold futures fell to $2,745.10, down 0.3%.
Crude petroleum
After Israel’s retaliatory assault against Iran over the weekend avoided oil and nuclear facilities, oil prices fell by over $5 a barrel on Monday.
By 1302 GMT, US West Texas Intermediate had dropped $4.78, or 6.7%, to $67.00, while Brent had dropped $4.80, or 6.31 percent, to $71.25 a barrel.
Here are the effects of the US presidential election on the stock market and economy.
Financial markets are eagerly awaiting the US presidential election, which is less than a week away and is tense.
There are plenty of reasons to feel anxious. With significant ramifications for the rest of the world, both sides have presented starkly divergent ideas about America’s economic future.
All of this takes place against the backdrop of a continuing Middle East crisis and growing tensions with China. The price of gold, which is frequently used by investors as a hedge against uncertainty, has surged to all-time highs.
What could be the cause of this effect?
It is far more difficult to determine if this performance is the result of smart policies or good luck. It would suggest that voters have been consistently failing to reward good governance if the effect was the result of better policy choices.
This notion is supported by the last three Republican to Democratic presidential transitions. Joe Biden was elected during the pandemic, Barack Obama at the height of the global financial crisis, and Bill Clinton soon after the recession of 1990–91.
Stock prices frequently rise as the economy bounces back from a crisis. According to Pastor and Veronesi’s argument, voters’ increased risk aversion at the right moment determines whether Democratic presidents are elected and function well.