Stocks closed mixed on Monday as the 10-year Treasury yield rose and investors braced for a packed week of top-tier earnings that could drive or drag on a record-setting rally.
The S&P 500 (^GSPC) dropped almost 0.2%, coming off a fresh all-time closing high and a sixth weekly win in a row. The Dow Jones Industrial Average (^DJI) dropped more than 300 points, closing about 0.8% lower, while the tech-heavy Nasdaq Composite (^IXIC) closed up 0.2%.
AI chip heavyweight Nvidia (NVDA) gained more than 4% to close at a fresh all-time high, while iPhone maker Apple (AAPL) also eked out a closing record.
Meanwhile, the 10-year Treasury yield (^TNX) climbed 10 basis points to 4.18%, the highest level since July.
Whether records keep rolling in rides in large part on corporate results in the coming days. Earnings season ramps up this week, as over 100 S&P 500 companies are lined up to report. So far, 80% of third quarter updates from those on the benchmark have topped the mark.
General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big hitters on the earnings docket this week.
Boeing (BA) faces a double-whammy on Wednesday, when it's expected to release earnings at the same time workers vote on whether to accept a tentative deal agreed with the union to end a five-week strike. Shares of the plane maker rose over 3%.
Live14 updates
Ines Ferré
Stocks end session mixed as Nvidia, Apple notch fresh record closes
Stocks slipped on Monday as the 10-year Treasury yield rose to its highest level since July and investors braced for a packed week of top-tier earnings that could drive or drag on a record-setting rally.
The S&P 500 (^GSPC) dropped almost 0.2%, coming off its closing all-time high on Friday. The Dow Jones Industrial Average (^DJI) lost more than 300 points, snapping a three-day winning streak, while the tech-heavy Nasdaq Composite (^IXIC) closed about 0.2% higher.
Interest rate sensitive stocks like Real Estate dropped during during the session as the 10-year Treasury moved up 10 basis points to 4.18%.
Meanwhile AI chip heavyweight Nvidia (NVDA) rose more than 4% to a new record, while iPhone maker Apple (AAPL) eked out a record close.
Streaming giant Netflix (NFLX) also rose to a record high during Monday's session.
Ines Ferré
Elon Musk's million-dollar promises and Kamala Harris’s record haul heat up end of 2024 money race
A wild weekend on the campaign trail underlined two key trends of the 2024 campaign cash race: Kamala's Harris's outsized fundraising prowess and Donald Trump's reliance on an array of friendly billionaires.
Vice President Harris's campaign out-raised Trump by over 3 to 1 in September to cap off a less than three-month sprint as a candidate that saw her raise an unprecedented $1 billion.
Trump's own formal operation has lagged behind. But the former president and his allies have tried to make up the difference with their own flood of billionaire donations directed to outside groups supporting his candidacy.
The smartphone industry is banking on AI to reaccelerate device sales after years of slowing growth. But to do that, it’ll have to give consumers a reason to pony up for new phones more often.
Qualcomm (QCOM) is aiming for its latest smartphone chips to do just that, adding a number of new on-board AI capabilities it says will allow you to do things like virtually adjust the lighting in your video calls in real-time and allow your device to recognize real-world objects without having to access the web.
Earnings beats are being rewarded more than normal
An early trend is emerging through the first part of quarterly earnings reports.
For the first time since 2020, companies that beat Wall Street's expectations on both revenue and earnings are seeing larger stock moves than companies that miss on both metrics.
Through earnings from 71 companies in the S&P 500, companies that beat expectations on both metrics are seeing an average stock gain of 3.15% over the next day, above the 1.49% average seen since 2000, per research from Bank of America. Meanwhile, companies that miss on revenue and earnings estimates are seeing a 2.61% decline in their stock the next day, below the average since 2000 of 2.44%.
"As large-cap Tech earnings near, the potential for large earnings reactions to continue strengthens the case for owning Tech vol through the end of October," Bank of America Securities team of strategists wrote in a note on Monday morning.
Morgan Stanley chief US equity strategist Mike Wilson opined on the topic in a note to clients on Sunday night as well.
"Bottom line, dispersion between stocks and even within sectors is likely to remain high as the market appears to be delineating clearly between earnings beats and misses," Wilson wrote.
Ines Ferré
GM Q3 earnings preview: What to watch
Pras Subramanian reports:
Investors are expecting more upbeat results from GM (GM) when the automaker reports earnings on Tuesday after the company raised its guidance for a second time earlier this year on the back of decent US sales. Questions around GM’s EV business and inventory management, however, will be in focus.
For the third quarter, GM is expected to report revenue of $44.69 billion per Bloomberg consensus, sequentially lower than last quarter’s nearly $48 billion, but to be expected given the second quarter’s historically strong sales. GM’s Q3 revenue is expected to be higher than a year ago.
Netflix (NFLX) shares hit all-time highs on Monday, extending gains from last week when the streaming giant posted a better-than-expected quarterly print.
The stock briefly touched a new high of $773 during the session before paring gains.
Ines Ferré
Gold hits record, silver jumps to 52-week high as precious metals outperform broader markets
Gold and silver gains show no sign of slowing down as investors continue to pour into precious metals.
Gold futures (CG=F) rose 0.8% on Monday to touch an intraday high above $2,750 per ounce. Silver futures (SI=F) gained more than 3% to briefly top $34 per ounce, a 12-year high.
Both metals have outperformed the broader markets. Gold bullion is up roughly 26% and silver has risen nearly 35% since the start of 2024, compared with the S&P 500's (^GSPC) gain of 19%.
Central banks have been buying up the yellow metal, and investors have been increasingly entering physically backed gold ETFs amid expectations of lower interest rates.
Ines Ferré
Disney board to announce Bob Iger successor in early 2026: 'A critical priority'
Yahoo Finance's Alexandra Canal reports:
Disney (DIS) plans to announce its next CEO in early 2026, the first timeline the company has publicly given for appointing a successor to current chief Bob Iger.
The media giant made the announcement on Monday while simultaneously revealing that current board member and former Morgan Stanley (MS) CEO James Gorman will serve as the board's new chairman, effective Jan. 2, 2025. He will exit his role as executive chairman at Morgan Stanley on Dec. 31.
“A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026," Gorman said in a press release. "This timing reflects the progress the Succession Planning Committee and the Board are making, and will allow ample time for a successful transition before the conclusion of Bob Iger’s contract in December 2026."
Dallas Fed president Lorie Logan reiterated on Monday that she sees policymakers lowering interest rates "gradually". She cited an increased risk that the job market could worsen and a danger that inflation could still heat up again.
"If the economy evolves as I currently expect, a strategy of gradually lowering the policy rate toward a more normal or neutral level can help manage the risks and achieve our goals," Logan said in a speech at the Securities Industry and Financial Markets Association's annual meeting in New York.
Logan said the economy is "strong and stable" but that "meaningful uncertainties" remain in the outlook.
Nvidia (NVDA) stock climbed more than 1.5% early on Monday, helping mitigate a bigger decline in the Nasdaq Composite (^IXIC).
Shares of the AI chip heavyweight rose to hover above $140 each, briefly touching an intraday high of $141.
The Nasdaq was trading near the flat line as Nvidia rose.
Ines Ferré
Stocks dip as investors await fresh batch of earnings
The major averages opened slightly lower on Monday as investors awaited a fresh batch of earnings this week.
The S&P 500 (^GSPC) dropped roughly 0.2%, coming off a fresh all-time closing high, while the Dow Jones Industrial Average (^DJI) edged 0.1% lower. The tech-heavy Nasdaq Composite (^IXIC) shed 0.2%.
A fresh batch of quarterly results will roll in this week, including from Tesla (TSLA) on Wednesday. General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big names on the earnings docket this week.
Laura Bratton
Boeing stock rallies on tentative labor deal
Boeing (BA) stock jumped as much as 4.5% in Monday's premarket on news that the aircraft manufacturer has reached a tentative labor deal with workers who have been on strike for more than one month.
The union will vote on the contract on Wednesday, the same day Boeing reports its quarterly earnings. Analysts expect the plane maker to report a loss per share of $1.50, according to Bloomberg consensus estimates.
Boeing has struggled since an airplane part ripped off one of its 737 Max 9 planes during a flight in January. Shares are down over 40% this year.
Of the Wall Street analysts covering the stock tracked by Bloomberg, some 19 recommend buying shares, while 11 have a Hold rating, and three say to sell. On average, analysts see Boeing shares rising to about $192 each over the next 12 months, implying a more than 20% gain.
Jenny McCall
Good morning. Here's what's happening today.
Economic data: Leading Economic Index, (September)
Earnings: SAP SE (SAP), Nucor Corporation (NUE), HBT Financial (HBT), Zions Bancorporation (ZION), Nucor Corporation
Here are some of the biggest stories you may have missed over the weekend and early this morning:
Exploring Investments in Biodiversity and Nature-based Solutions to Climate Change and Environmental DegradationSANTA BARBARA, Calif., Oct. 21, 2024 (GLOBE NEWSWIRE) -- Cerulean Ventures, a climate tech venture capital firm operating in the trillion dollar annual climate finance sector, will hold a roundtable at Bloom 24 on Friday, October 25th titled: “Investing in Technology for a Nature Positive Economy.” Cerulean Ventures is a leading investor in market-based solutions to value nature, defin
HOUSTON, October 21, 2024--Mesa Royalty Trust (the "Trust") (NYSE: MTR) announced today the Trust income distribution for the month of October 2024. Unitholders of record on October 31, 2024 will receive distributions amounting to $0.005692813 per unit, payable on January 31, 2025. The Trust received $26,349 which came from the Colorado portion of the Trust’s San Juan Basin properties operated by SIMCOE LLC, an affiliate of IKAV Energy Inc. No income was received in October 2024 from any other w
MINNEAPOLIS, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Jamf (NASDAQ: JAMF), the standard in managing and securing Apple at work, announced today it will report third quarter 2024 financial results for the period ended September 30, 2024, following the close of the market on Thursday, November 7, 2024. On that day, management will host a conference call and webcast at 3:30 p.m. CT (4:30 p.m. ET) to discuss the company’s business and financial results. Jamf Third Quarter 2024 Earnings Conference Call When
The stock market rally sits on a six-week win streak, with the Dow Jones and S&P 500 ending last week at fresh highs. Market leadership is broad, both in terms of sectors and temperament. Amid that strength, investors are crowding into stocks with subpar fundamentals, driving many of the more speculative names sharply higher this month.
AppLovin (APP) has received bullish sentiment from BofA Securities, with the financial institution nearly doubling its price target for the mobile technology company. BofA has raised its target from $120 to $210 per share, citing that current market valuations for AppLovin are undervaluing the company's potential. Furthermore, BofA suggests that Wall Street has not fully appreciated the extent of AppLovin's growth and transformation. Market Domination Co-Hosts Jared Blikre and Josh Lipton dive into the details. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Angel Smith
WASHINGTON, Oct. 21, 2024 (GLOBE NEWSWIRE) -- American Citizens Abroad (ACA) has joined parties opposing actions which would narrow the ability of U.S. citizens living overseas to vote. In Pennsylvania, steps have been taken by state officials to make it easier for voters overseas to vote. Plaintiffs in the lawsuit would narrow voter registration rules as they apply to U.S. citizens living overseas. ACA favors rules and actions that make it easier for U.S. citizens living overseas to exercise th
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, British Columbia, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Rio2 Limited (“Rio2” or the “Company”) (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) today announces that it has arranged a mine construction financing package expected to total approximately US$150 million for construction and general working capital of the Company’s 100%-owned Fenix Gold Project in Chile (“Fenix Gold” or the “Project”). This fu
Moldova has voted to enshrine its EU membership aspirations in the nation’s constitution by a razor-thin margin after a campaign awash with accusations of Russian interference and political repression. It’s an awkward moment for President Maia Sandu, who organised the vote to coincide with her own bid for re-election – and failed to win the absolute majority needed to triumph in the first round. It wasn’t until the final votes trickled in from Moldova’s far-flung diaspora that the final decision
Peter DeBoer was worried. The experienced coach now in his fifth NHL job was concerned his Dallas Stars would get off to a slow start after back-to-back trips to the Western Conference Final.
NEW YORK, October 21, 2024--American International Group, Inc. (NYSE: AIG) today announced that it will redeem all of its outstanding Zero Coupon Callable Notes Due 2047 (Common Code 168419864 / ISIN XS1684198648) (the "Notes") on November 22, 2024 (the "Redemption Date"). On the Redemption Date, AIG will pay to the registered holders of the Notes a redemption price equal to 135.631% of the face amount of the Notes outstanding on such Redemption Date. As of October 21, 2024, $400,000,000 face am