US stocks closed mostly flat on Monday to kick off a big week filled with a Federal Reserve rate decision, the jobs report, and Big Tech earnings.
The Dow Jones Industrial Average (^IXIC) closed down 0.1%, coming off a surge of over 650 points for the blue-chip index on Friday. The S&P 500 (^GSPC) gained nearly 0.1% while the tech-heavy Nasdaq Composite (^IXIC) rose just above the flatline.
Stocks kicked off the week on the front foot after surging on Friday, as investors welcomed a promising inflation reading that cemented bets for interest-rate cuts. But after a volatile run of sessions and a huge tech sell-off, the watch is on for surprises that could put the fragile rally to the test.
No move is expected from the Federal Reserve at the end of its meeting on Wednesday, despite signs the US economy and inflation have hit a sweet spot. Many on Wall Street see other reasons for the central bank to wait until September to act.
The July nonfarm payrolls report that follows on Friday — expected to show cracks in the jobs market — will play into after-the-fact calculations on timing and depth of rate cuts in 2024.
Looming earnings this week from Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta (META) also have investors on alert, given the stock wipeout that followed the first pair of "Magnificent Seven" results.
On Monday shares of EV giant Tesla (TSLA) gained more than 5% after Morgan Stanley's Adam Jonas designated the stock a 'top pick.' McDonald's (MCD) stock rose despite an earnings miss across the board as consumers pulled back on spending at the fast food chain.
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Ines Ferré
Stocks end session mixed ahead of big week for markets
US stocks ended the session mixed on Monday, kicking off a big week on Wall Street amid a Federal Reserve rate decision, the jobs report, and Big Tech earnings.
The Dow Jones Industrial Average (^IXIC) fell 0.1% after soaring over 650 points on Friday. The S&P 500 (^GSPC) gained 0.1% while the tech-heavy Nasdaq Composite (^IXIC) rose almost 0.1%.
Among Monday's big movers, Tesla (TSLA) shares gained more than 5% after a bullish call from Morgan Stanley. McDonald's (MCD) stock rose more than 3% despite an earnings miss across the board as consumers pulled back on spending at the fast food chain.
Investors will hear from a slew of Big Tech heavyweights this week, starting with Microsoft (MSFT) which is set to report on Tuesday after the closing bell. Apple (AAPL), Amazon (AMZN), and Meta (META) will release their quarterly results later this week.
On Wednesday afternoon Federal Reserve officials will announce their interest rate decision after their two-day meeting. Investors widely expect the central banks to set the stage for a September rate cut.
The July jobs report will be released on Friday.
Ines Ferré
Lamborghini bucks softness in luxury market with record first-half results
Italian luxury automaker Lamborghini delivered stellar results in the first half of 2024 despite a subdued selling environment for high-end automobiles and luxury goods in general.
Lamborghini, part of Volkswagen's (VWAGY) Audi Group that includes Audi, Lamborghini, Ducati, and Bentley, reported record revenue of 1.6 billion euros ($1.762 billion) for the first six months of 2024, a 14.1% jump from a year ago. Operating profit hit another record of 458 million euros ($495 million).
Lamborghini delivered 5,558 cars in the first half, another all-time high, powered by sales of the Revuelto hybrid supercar, outgoing Huracán two-seater, and the Urus SUV that now comes in hybrid SE trim.
Tesla jumps more than 5% on bullish call from Morgan Stanley
Tesla (TSLA) stock gained more than 5% on Monday following a bullish call from Morgan Stanley's Adam Jonas.
The analyst designated the electric vehicle maker as a top pick, citing Tesla's potential to generate positive cash flow after implementing cost-cutting and restructuring measures.
Tesla shares rallied for much of June but started to show signs of pullback earlier this month. The stock tanked more than 12% in one session last week after the company posted mixed second quarter results revealing growth this year would be "notably lower" than what it saw in 2023.
Ines Ferré
Apple gives developers first taste of Apple Intelligence with iOS 18.1 developer beta
Apple (AAPL) is giving developers an early look at its upcoming Apple Intelligence AI platform with the release of its latest developer betas for iOS, iPadOS, and MacOS on Monday. The betas, called iOS 18.1, iPadOS 18.1, and macOS Sequoia, are the first to include Apple’s highly anticipated Apple Intelligence software, which the company debuted at its Worldwide Developer Conference (WWDC) in June.
Apple’s developer beta program gives app creators access to upcoming versions of the company’s software to test it and incorporate its features into their own apps. Apple also releases public betas for regular users to try its latest software offerings before making them generally available in the fall.
The cryptocurrency climbed above $69,000 before paring gains on Monday after Republican presidential candidate Donald Trump spoke at a bitcoin conference in Nashville over the weekend.
Trump promised pro-crypto initiatives, including the establishment of a "strategic national bitcoin stockpile."
Ines Ferré
Investors are betting the Fed will use its July meeting to set the stage for a September cut
Most Federal Reserve watchers don’t expect the central bank to ease monetary policy this week in Washington, D.C., but what they do expect is that policymakers will set the stage for an interest rate cut at their next meeting in September.
Fed officials have said they are getting closer to having confidence inflation is sustainably dropping to their 2% goal. They have also said they are paying more attention to rising unemployment, another sign that cuts may be nearing.
But most Fed watchers say the central bank still needs just a bit more time to be sure, while also preparing the markets for the significant action to come.
"The pressure is growing for them," said former Kansas City Fed president Esther George. "I think that they are going to look at September very seriously. It’s looking to me like we are coming to a time where that decision is more important and it's why I'm more confident."
Stocks rose on Monday after briefly turning negative during the session.
The Dow Jones Industrial Average (^DJI) was little changed after falling more than 100 points in morning trading.
The S&P 500 (^GSPC) gained 0.2% while the tech-heavy Nasdaq Composite (^IXIC) climbed back into green territory to rise 0.2% after briefly turning negative.
Ines Ferré
Starbucks expected to report weak sales as it pushes popping pearls and value plays
Yahoo Finance's Brooke DiPalma reports:
Starbucks (SBUX) investors are cautious ahead of its Tuesday earnings report.
Its shares are down nearly 28% compared to a year ago, when the coffee giant painted a picture of a resilient consumer with 10% sales growth. Now, different expectations are on tap.
Q3 revenue is expected to grow 0.37% to $9.20 billion, per Bloomberg consensus estimates. Adjusted earnings per share are expected to be $0.92, compared to $1.00 a year ago.
Stocks erased earlier session gains to hover below the flatline on Monday.
The Dow Jones Industrial Average (^DJI) lost roughly 100 points after initially opening higher. The S&P 500 (^GSPC) fell 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) also fell below the flatline after gaining as much as 0.9%.
Ines Ferré
Bitcoin hovers near $69,000 following Trump pro-crypto speech
Bitcoin (BTC-USD) traded near the $69,000 per token level on Monday after former President Donald Trump pushed a pro-crypto agenda at a bitcoin conference over the weekend.
Trump was the keynote speaker at Bitcoin 2024 on Saturday in Nashville The Republican presidential candidate said he plans to make the US the "cryptocurrency capital of the world" if elected in November. He also proposed the creation of a “national bitcoin stockpile.”
McDonald's stock rises despite Q2 earnings miss as consumers pull back on dining out
McDonald's (MCD) shares rose on Monday morning, recovering from an initial negative reaction at the market open following the fast food chain's quarterly results.
McDonald's customers are tightening their belts again in Q2, as they grapple with paying up for their Big Mac.
On Monday morning, the company reported Q2 earnings that missed Wall Street estimates across revenue, earnings, and same-store sales, proving not even America's most dominant fast food player is immune to the challenging macro conditions.
Shares of the fast food chain initially opened lower, but quickly recovered to gain as much as 3% in early trading.
Ines Ferré
Stocks open higher to kick off big week on Wall Street
Stocks stepped higher on Monday to kick off a big week filled with a Federal Reserve rate decision, the jobs report, and tech earnings.
The Dow Jones Industrial Average (^DJI) moved up slightly, coming off a recent surge of over 650 points. The S&P 500 (^GSPC) added about 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.5%.
The Federal Open Market Committee will hold its scheduled two-day meeting this week, with no rate move expected by Federal Reserve officials on Wednesday. Most investors see policymakers waiting until September to cut interest rates.
Big Tech earnings are due this week, including from Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META).
Brian Sozzi
A morning chart to leave you thinking
And so begins an insanely busy week for investors.
Investors start the week bruised by the surprise tech sell-off last week, which may just be getting going, reports Yahoo Finance's Seana Smith.
RBC strategist Lori Calvasina puts some context around the tech stall-out below.
Moore spoke candidly about her ex-husband at the 2024 Hamptons International Film Festival on Sunday, sharing her perspective on the Die Hard actor's diagnosis. "The disease is what the disease is. And I think you have to be in real deep acceptance of what that is," Moore said at the festival event, as reported by People. She was there to accept a Career Achievement in Acting Award. "But for where he's at, he is stable." Moore, who was married to Willis from 1987 to 2000 and shares three daughters, Rumer, Scout and Tallulah with him, expanded further:
An Italian coastguard vessel collected migrants held in reception centres in Albania on Saturday to transfer them to Italy, after a court ruling dealt a blow to Rome's plans to house migrants picked up at sea outside the EU. The Italian government vowed on Friday to push ahead with Prime Minister Giorgia Meloni's flagship project to divert asylum-seekers abroad, saying it would appeal against the legal decision that migrants in reception centres in Albania should be taken to Italy.
Following the October international break, Lazio resume their Serie A campaign with a trip to Turin to take on the undefeated Juventus.The contest kicks off on Saturday, 20:45 local time at the Allian...
Despite a swirl of negative developments, U.S. equity markets continue to power higher, leaving many wondering why stocks seem impervious to bad news. As per analysts at Sevens Report, this resilience reflects a market that remains firmly anchored by two key beliefs: economic growth will remain stable, and the Federal Reserve will cut interest rates—conditions that continue to support bullish sentiment despite growing risks. The week kicked off on a shaky note, as inflation data revealed an uptick in the Consumer Price Index, marking the first increase this year.
TOKYO (AP) — A man threw several firebombs into the headquarters of Japan’s ruling party in Tokyo Saturday, then crashed his car into the fencing of the prime minister's residence, Tokyo police said. There were no reports of injuries.
The exercises, dubbed "IMEX 2024", are aimed at boosting "collective security in the region, expand multilateral cooperation, and display the goodwill and capabilities to safeguard peace, friendship and maritime security", the English-language Press TV said. Participants would practice tactics to ensure international maritime trade security, protect maritime routes, enhance humanitarian measures and exchange information on rescue and relief operations, it said.
JERUSALEM (AP) — Israel’s government said a drone was launched toward the prime minister’s house Saturday, with no casualties as Iran’s supreme leader vowed that Hamas would continue its fight against Israel following the killing of the mastermind of last year’s deadly Oct. 7 attack.
Ministers are exploring plans to hand ownership of the Post Office to thousands of sub-postmasters across Britain in an historic shake-up at the 364 year-old institution. Sky News has learnt that the Department for Business and Trade (DBT) has asked BCG, the management consultancy, to examine options for mutualising the Post Office. The work is said to be at an early stage, but is expected to result in a report being handed to Jonathan Reynolds, the business secretary, in the coming months, according to a government insider.