US stocks rose on Monday to head for fresh record highs as Nvidia shares climbed and investors prepared for more big bank earnings to test that rally and the chances of an economic "soft landing."
The S&P 500 (^GSPC) moved up 0.7% to head for a fresh record after ending above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite (^IXIC) jumped 0.7%. The Dow Jones Industrial Average (^DJI) rose more than 100 points, or 0.4%.
Tech stocks led the gains, with chip giant (NVDA) rising toward new highs, up more than 2% during the session. Other semiconductor stocks also surged including chip equipment maker ASML (ASML), Arm Holdings (ARM) and Applied Materials (AMAT).
The Dow and S&P 500 closed a winning week at new records after JPMorgan Chase (JPM) and Wells Fargo (WFC) earnings largely passed Wall Street's test. Investor focus is staying on big banks with reports from Goldman Sachs (GS), Citi (C), and Bank of America (BAC) on Tuesday's docket, and Morgan Stanley (MS) due Wednesday.
At the same time, there's still uncertainty about whether the Federal Reserve will cut interest rates again. A benign jobs report and data showing "sticky" consumer and wholesale inflation are building a case for no rate cut in November, some analysts argue. Retail sales data later in the week will feed into the debate as to whether the economy has held up in the face of Fed policy — the preferred soft landing.
On the corporate front, Boeing (BA) shares slipped amid questions about the crisis-hit plane maker's future. The company, which faces a record $5 billion in third quarter losses, has slashed 17,000 jobs as a month-long strike hits manufacturing.
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Ines Ferré
Fed’s Kashkari said 'modest' rate cuts are 'likely' in the coming quarters
Yahoo Finance's Jennifer Schonberger reports:
Minneapolis Fed president Neel Kashkari said Monday that it’s "likely" the central bank will make "modest" interest rate reductions in the "coming quarters."
Monetary policy, he said while speaking in Argentina, remains "overall restrictive" though how restrictive is unclear to him.
The job market remains strong, he added, noting that recent data showed that a rapid weakening in that market doesn’t appear to be "imminent."
Thus "it appears likely that further modest reductions in our policy rate will be appropriate in the coming quarters to achieve both sides of our mandate," Kashkari said.
Dow, S&P 500 hold near record as tech, utilities leads rally
Technology and Utility stocks rose on Monday, helping lift the Dow Jones Industrial Average (^DJI) up 0.3% and the S&P 500 (^GSPC) up 0.6%. Both major averages were on pace to close at a fresh record high.
The tech-heavy Nasdaq Composite (^IXIC) rose the most among the major averages, up 0.7%.
Laura Bratton
SoFi stock soars on $2 billion Fortress deal to expand loan platform
SoFi Technologies (SOFI) stock jumped as much as 9% after the online lender announced a $2 billion agreement with Fortress Investment Group to expand its loan platform business. The segment refers pre-qualified borrowers to loan origination partners and connects lenders with borrowers.
The move reflects SoFi's strategy of diversifying from its roots in student loan refinancing.
"SoFi’s loan platform business is an important part of our strategy to serve the financial needs of more members and diversify toward less capital-intensive and more fee-based sources of revenue," said Anthony Noto, CEO of SoFi, in a statement.
Of the Wall Street analysts covering the stock tracked by Bloomberg, only six recommend buying the stock, while 10 have Hold ratings and three have Sell ratings. The stock is up nearly 20% from last year but far from its record intraday high near $27 upon its IPO in 2021.
Analysts see shares falling to $8.91 over the next 12 months, according to Bloomberg data.
Ines Ferré
Dow climbs into green territory, holds near record
The Dow Jones Industrial Average (^DJI) clawed its way into green territory by 10:30 a.m ET to hover at new intraday record highs. The blue-chip index had slipped as much as 0.3% shortly after the market open following a record close on Friday.
Meanwhile the S&P 500 (^GSPC) gained 0.6% Monday, on pace for another record close.
Laura Bratton
TSMC stock hits record high, rejoins $1 trillion club
Nvidia (NVDA) supplier TSMC (TSM) saw shares of its US-listed equity rise more than 1% in early trading, with the stock notching a new record intraday price of $193.96 per share and rejoining the $1 trillion club.
TSMC shares previously hit an all-time high above $193 each in July after the Taiwanese contract chipmaker reported second-quarter earnings. That surge briefly put its market capitalization above $1 trillion before shares pared gains. The stock fell back to earth as investors weighed its high valuation multiples, geopolitical risks, and concerns over AI demand.
TSMC last week revealed third-quarter revenue of 759.7 billion New Taiwan dollars ($23.6 billion). That beat the NT$748.3 ($23.3 billion) expected according to Bloomberg data, as well as the company's prior guidance of $22.4 billion to $23.2 billion.
Some 23 Wall Street analysts covering the stock tracked by Bloomberg recommend buying TSMC shares, while only one analyst has a Hold rating. Analysts see shares rising to $216.59 each over the next 12 months, according to Bloomberg data.
Ines Ferré
Boeing slips more than 2% as plane maker plans cuts 10% of workforce, strike enters 5th week,
On Friday, the company said it will cut 17,000 jobs, or about 10% of its workforce.
"Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term," CEO Kelly Ortberg said in a message to employees posted on Boeing's website on Friday.
An ongoing strike by Boeing's biggest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly on several fronts for the company.
S&P Global put the cost estimate of the strike that started on Sept. 1 at roughly $1 billion per month. Last week, talks between Boeing and IAM broke down, with the company withdrawing its contract proposal.
Ines Ferré
Nvidia climbs 2%, hovers near record
Nvidia (NVDA) stock jumped more than 2% at the open on Monday, surpassing its June record high close of $135.58.
The stock was a couple of dollars away from its all-time intraday high just past $140.76.
Ines Ferré
S&P 500 eyes fresh record, Dow slips as focus shifts to earnings
The major averages opened mixed on Monday as investors turned their focus to upcoming big bank earnings and other quarterly results from major companies.
The tech-heavy Nasdaq Composite (^IXIC) was up 0.5% soon after the bell on Monday, while the Dow Jones Industrial Average (^DJI) slipped 0.2% from its Friday record close.
Earnings season continues in full swing this week, with Citi (C), United Airlines (UAL), AI chip equipment maker ASML (ASML), Netflix (NFLX), and American Express (AXP) among those expected to report.
Oil futures dropped more than 2% as OPEC cut its demand forecast for 2024 and 2025. Traders also reacted to a lack of detail from China's Finance Minister over the weekend on any large new stimulus spending.
Laura Bratton
Nvidia stock eyes record high and top spot as most valuable company ahead of Apple
The AI chipmaker's shares have made substantial gains in October following a massive, $6.6 billion funding round for ChatGPT-maker OpenAI, much of which will be funneled back to Nvidia. AI leaders, including Nvidia CEO Jensen Huang, have cited furious demand for the company's latest Blackwell chips. Its stock is up 8% over the past week.
Nvidia's gains put it on track to once again claim the rank of No. 1 most valuable company in the world, in terms of market capitalization. It currently holds the No. 2 position, behind Apple (AAPL). The chipmaker's market cap stood at $3.3 trillion Monday, while Apple's was $3.46 trillion. Apple, Microsoft (MSFT), and Nvidia have traded places as the top three companies over the past year.
Nvidia is set to report earnings on Nov. 19. Wall Street analysts expect it to report revenue of $33 billion, up 82% from the prior year, according to Bloomberg consensus estimates. Some 90% of those covering the stock and tracked by Bloomberg recommend buying Nvidia shares.
SARAJEVO, Bosnia-Herzegovina (AP) — The death toll from this month's devastating floods and landslides in Bosnia has reached 26 people while rescue teams are searching for at least one more person still missing some 10 days after a rainstorm caused havoc in the Balkan country, authorities said on Monday.
Summary: Deepak Kumar, an accomplished IT Architect, has been awarded a 2024 Global Recognition Award for his leadership in SAP architecture. With over 18 years of experience, Kumar has led critical projects at Agilent Technologies, driving innovation in SAP cloud solutions and delivering impactful technological advancements.New York, New York--(Newsfile Corp. - October 14, 2024) - Deepak Kumar, an accomplished IT Architect, has been honored with a 2024 Global Recognition Award for his leadershi
Bath & Body Works is apologizing for selling a candle with packaging that some people said looked like Ku Klux Klan hoods. It was quickly pulled off of the website once the issue was brought to Bath & Body Works attention. The image on the packaging was supposed to convey a snowflake cut out of paper.
Broadcom and Uber Technologies rank among this week's top five stocks to watch near buy points. JPMorgan Chase, Delta Air Lines and Ryan Specialty also make the cut. Delta stock broke out on Monday. Among these, Ryan Stock belongs to the IBD 50 list of top growth stocks.
Charles Schwab will report earnings for the third quarter early Tuesday. Interactive Brokers follows late Tuesday. Shares of the online broker stocks rose on Monday. Last week, BlackRock crushed Q3 estimates as assets under management crossed $11.
A football-loving couple tied the knot in the parking lot at Lincoln Financial Field in Philadelphia, Pennsylvania, on Sunday, October 13, while tailgating before the Philadelphia Eagles 20-16 win over Cleveland Browns.Video from Matthew Talbot, a professional wedding photographer who happened upon the scene, shows the happy groom leading an Eagles chant in Lot P. “This is technically the second wedding I’ve filmed in the past 24 hours,” Talbot wrote on X. Credit: Matthew Talbot via Storyful
The leader of Austria's far-right Freedom Party criticised President Alexander Van der Bellen's handling of coalition talks on Monday for the first time since the FPO won last month's parliamentary election but fell far short of a majority. Van der Bellen, who oversees the formation of governments, said last week he could not follow the convention of asking the election winner to form a coalition because no party wants to govern with the FPO. "The president could simply have provided clarity by tasking the Freedom Party with forming a government as the party with the most votes," FPO leader Herbert Kickl, 55, said in a statement to the media.
Dublin, Oct. 14, 2024 (GLOBE NEWSWIRE) -- The "Patent Protection for Software-Related Inventions in Europe and the USA Training Course" conference has been added to ResearchAndMarkets.com's offering. Technology and software have influences across most business sectors in relation to leveraging growth, and this has important implications for IP and patent laws. This intensive one-day event will help you to understand the development strategies impacting software patents and update you on the majo
The French Rugby Federation expresses its "firm opposition" to the proposed 20-minute red card, saying it is an "unacceptable step backwards" by World Rugby.
Italy's biggest bank Intesa Sanpaolo is under investigation by prosecutors in the southern city of Bari following a security breach caused by a former employee, Italian news agency ANSA reported on Monday. On Sunday, the bank apologised after a former employee had spied on the bank accounts of thousands of customers, including Prime Minister Giorgia Meloni.