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, or 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.
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% in early Monday trading.
Meanwhile, the 10-year Treasury yield (^TNX) climbed 10 basis points to 4.18%, the highest level since July.
Oil prices rose nearly 2% alongside gains for Chinese stocks (000300.SS) as China's stimulus push continued with a cut to key lending rates. Global benchmark Brent futures (BZ=F) closed above $74 a barrel, while West Texas Intermediate (CL=F) crude futures settled north of $70, with Israel's next Iran move also in focus.
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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’ 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:
To strengthen its market position and expand international reach, the Costa Rican Foreign Trade Promotion Agency (PROCOMER) led the country's participation in The Global Produce and Floral Show 2024. The event, held from October 17 to 19 in Atlanta, Georgia, USA, attracted more than 21,000 participants from over 60 countries.
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StoneX Group Inc.: Notice to stockholders regarding UK disclosure requirementsNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. NEW YORK, Oct. 21, 2024 (GLOBE NEWSWIRE) -- StoneX Group Inc. (“StoneX”) wishes to direct the attention of its stockholders to certain disclosure requirements which may be applicable to them in co
The Bravo stars tied the knot in front of 200 guests, including Jesse's brothers Steven, Cole and Brayden, who star alongside McBee on the family's reality show
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Don't look now, but Atlanta Falcons tight end Kyle Pitts has been one of the most productive tight ends in the NFL this season. After much was made about his zero-yard game against the New Orleans Saints, Pitts has exploded in the Fal
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Celebrating 42 years with better-than-ever fajitas On The Border Mesquite Fire Grilled Chicken Fajitas Chicken fajitas fire-grilled over real mesquite wood and served with hand-pressed flour tortillas, fajita veggies, rice, beans, and a grilled jalapeno. On The Border Premium Grilled Mesquite Fire Steak Fajitas Premium outside skirt steak fajitas fire-grilled over real mesquite wood and served with hand-pressed flour tortillas, fajita veggies, rice, beans, and a grilled jalapeno. Dallas, Oct. 21
Wealth management clients can let emotions related to politics wreak havoc with their investments. Here are four tips advisors can use to keep them on track.
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