U.S. stocks rose toward new record highs on Monday as Nvidia shares rose and investors braced for more gains from big banks to test the rally and the possibility of a “soft landing” for the economy.
The S&P 500 (^GSPC) rose 0.7% toward a new record after closing above 5,800 for the first time on Friday. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose 0.7%. The Dow Jones Industrial Average (^DJI) rose more than 100 points (0.4%).
Tech stocks led the gains, with semiconductor giant (NVDA) surging toward new highs and rising more than 2% during trading. Other semiconductor stocks also rose, including semiconductor equipment makers ASML (ASML), Arm Holdings (ARM), and Applied Materials (AMAT).
Earnings are in the spotlight as the first week of third-quarter earnings begins. The bull market is now in its second year, and how this season develops is seen as the key to rising stock prices.
The Dow and S&P 500 ended a winning week with new records after JPMorgan Chase & Co. (JPM) and Wells Fargo (WFC) profits largely passed Wall Street’s test. Reports from Goldman Sachs (GS), Citi (C), and Bank of America (BAC) are scheduled to be submitted on Tuesday, and a report from Morgan Stanley (MS) is scheduled to be submitted on Wednesday. Household attention remains focused on major banks.
At the same time, there remains uncertainty as to whether the US Federal Reserve will cut interest rates again. Some analysts argue that a positive employment report and data showing “sticky” consumer and wholesale inflation are building the case for no rate cut in November. Retail sales figures released later this week will factor into the debate over whether the economy has held up in the face of Fed policy (the desired soft landing).
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
On the corporate front, Boeing (BA) shares fell amid questions about the future of the crisis-hit aircraft maker. The company faced a record $5 billion loss in the third quarter, and a month-long strike hit its manufacturing industry, cutting 17,000 jobs.
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Monday, October 14, 2024, 9:15 a.m. (Pacific Daylight Time)
Fed’s Kashkari says “modest” rate cuts are “likely” in coming quarters
Yahoo Finance’s Jennifer Schonberger reports:
Minneapolis Fed President Neel Kashkari said Monday that the central bank is “likely” to make “modest” rate cuts “in the coming quarters.”
During a speech in Argentina, he said monetary policy remained “overall restrictive” but it was unclear to him how restrictive.
He added that the job market remained strong and recent data suggested a rapid weakening in the market was not “imminent”.
Therefore, Kashkari said, “To achieve both aspects of our mandate, it is likely appropriate to further reduce policy rates modestly in the coming quarters.”
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Monday, October 14, 2024, 8:36 a.m. (Pacific Daylight Time)
Dow and S&P 500 remain at near-record levels as tech and utility stocks lead gains
Technology and utilities stocks rose on Monday, pushing 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 new all-time highs.
The Nasdaq Composite Index (^IXIC), which has a large proportion of high-tech stocks, rose 0.7%, the highest rate of increase among the major average stock prices.
Utilities and technology gained on Monday
Monday, October 14, 2024 08:33 PDT
SoFi stock soars on $2 billion Fortress deal to expand lending platform
SoFi Technologies (SOFI) stock rose as much as 9% after the online lender announced a $2 billion agreement with Fortress Investment Group to expand its loan platform business. This division introduces pre-qualified borrowers to loan origination partners and connects lenders and borrowers.
The move reflects SoFi’s strategy to diversify from its roots in student loan refinancing.
“SoFi’s loan platform business expands our commitment to meet the financial needs of more members and diversify our less capital-intensive, fee-based revenue streams,” SoFi CEO Anthony Noto said in a statement. “This is an important part of our strategy.”
Of the Wall Street analysts tracking the stock tracked by Bloomberg, only six have recommended it as a buy, 10 have rated it a hold, and three have rated it a sell. There is. The stock is up nearly 20% since last year, but it’s nowhere near the intraday high of around $27 during its 2021 IPO.
Analysts expect the stock to fall to $8.91 over the next 12 months, according to Bloomberg data.
Monday, October 14, 2024 7:36 PDT
Dow rises into green territory, maintains near record
The Dow Jones Industrial Average (^DJI) entered green territory by 10:30 a.m. ET and hit a new intraday high. Following Friday’s record close, the blue-chip index fell by as much as 0.3% in the early hours of the market.
Meanwhile, the S&P 500 (^GSPC) rose 0.6% on Monday, on pace for a new record close.
Monday, October 14, 2024 7:13 PDT
TSMC stock reaches record high, joining the $1 trillion club
Nvidia (NVDA) supplier TSMC (TSM) saw its U.S.-listed stock rise more than 1% in early trading, hitting a new intraday price record of $193.96 per share. It has joined the trillion-dollar club.
TSMC stock previously hit a record high of more than $193 per share in July after the Taiwanese contract semiconductor maker announced second-quarter results. The surge briefly pushed the company’s market capitalization above $1 trillion before the stock price offset gains. The stock fell again as investors factored in its high valuation multiple, geopolitical risks and concerns about AI demand.
TSMC said last week that its third-quarter sales were NT$759.7 billion ($23.6 billion). That beat the NT$748.3 billion ($23.3 billion) expected, according to Bloomberg data, and also beat the company’s prior guidance of $22.4 billion to $23.2 billion.
Roughly 23 Wall Street analysts covering the stock tracked by Bloomberg recommend buying TSMC stock, but only one has a hold rating. Analysts expect the stock to rise to $216.59 each over the next 12 months, according to Bloomberg data.
Monday, October 14, 2024 7:00 AM PDT
Aircraft maker plans to cut 10% of workforce, strike enters fifth week, Boeing falls more than 2%;
Boeing (BA) shares fell more than 2% as investors questioned the crisis-hit aircraft maker’s future amid layoffs and a strike in its fifth week.
The company announced Friday that it would cut 17,000 jobs, or about 10% of its workforce.
In a message to employees posted on Boeing’s website, CEO Kelly Ortberg said, “More than navigating the current environment, we need to make tough decisions to rebuild our company.” “We need to make structural changes to remain competitive and serve our customers in the long term.” Friday website.
The ongoing strike by Boeing’s largest labor union, the International Association of Machinists and Aerospace Workers (IAM), has proven costly for the company on a number of fronts.
S&P Global estimates the cost of the strike, which began Sept. 1, at about $1 billion per month. Last week, negotiations between Boeing and IAM broke down, and the company withdrew its contract offer.
Monday, October 14, 2024 06:46 PDT
Nvidia up 2%, near record level
Nvidia (NVDA) stock rose more than 2% on Monday, surpassing June’s all-time high closing price of $135.58.
The stock price just passed $140.76, just a few dollars away from its intraday high.
Monday, October 14, 2024, 6:30 a.m. (Pacific Daylight Time)
S&P 500 hits record high, Dow falls as focus shifts to earnings
Major stock averages opened mixed on Monday as investors focused on upcoming earnings from big banks and other quarterly results from big companies.
The S&P 500 (^GSPC) rose about 0.3% and headed for a new all-time high. On Friday, the composite index closed above 5,800 for the first time.
The tech-heavy Nasdaq Composite Index (^IXIC) rose 0.5% immediately after the bell on Monday, while the Dow Jones Industrial Average (^DJI) fell 0.2% from Friday’s record close.
Earnings season is in full swing this week, with companies such as Citi (C), United Airlines (UAL), AI chip equipment maker ASML (ASML), Netflix (NFLX), and American Express (AXP) scheduled to report. There is.
Oil futures fell more than 2% after the Organization of the Petroleum Exporting Countries (OPEC) revised down its demand forecast for 2024 and 2025. Traders also reacted to China’s finance minister’s failure to provide details on a massive new stimulus package over the weekend.
Monday, October 14, 2024 06:16 PDT
Nvidia stock hits record high and aims to overtake Apple for top spot as most valuable company
Nvidia (NVDA) stock rose 1% to $136.22 in pre-market trading, pushing the semiconductor manufacturing giant above its all-time high of $135.58 set in June.
The AI chip maker’s shares have seen a big jump in October following a massive $6.6 billion funding round for ChatGPT maker OpenAI, much of which will go back to Nvidia. AI leaders, including Nvidia CEO Jensen Huang, cite intense demand for the company’s latest Blackwell chips. The company’s stock has risen 8% over the past week.
Nvidia’s gains put it on track to reassert its rank among the world’s most valuable companies in terms of market capitalization. It currently holds the No. 2 spot behind Apple (AAPL). The chipmaker’s market cap was $3.3 trillion on Monday, compared to Apple’s market cap of $3.46 trillion. Apple, Microsoft (MSFT), and Nvidia have swapped positions in the top three over the past year.
Nvidia is scheduled to release earnings on November 19th. Wall Street analysts expect the company’s revenue to rise 82% from a year ago to $33 billion, according to Bloomberg consensus estimates. Roughly 90% of people who cover the stock and are tracked by Bloomberg recommend buying Nvidia stock.
