Stocks fell on Monday as investors braced for a week packed with top-tier gains that could fuel or drag record gains.
The S&P 500 (^GSPC) fell about 0.3%, closing at a new all-time high and snapping a six-week winning streak. The Dow Jones Industrial Average (^DJI) fell nearly 0.5%, and the tech-heavy Nasdaq Composite Index (^IXIC) fell 0.2%.
AI chip giant Nvidia (NVDA) briefly broke an intraday record during the session, while iPhone maker Apple (AAPL) was on track to hit a new high at the close if its modest gains continued.
Whether records continue to be updated will have a major impact on company performance in the coming days. Earnings season is in full swing this week, with more than 100 S&P 500 companies lining up to report. So far, 80% of the Q3 updates included in the benchmark have exceeded the baseline.
Investors are nervous about Tesla’s (TSLA) Wednesday report after its robotaxi announcement fell short of expectations. Even after Netflix (NFLX) got off to a strong start to the large-cap season, the EV maker has been a highlight of the week as questions are being raised about Big Tech’s performance.
General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among the other big names appearing on earnings sheets this week.
Boeing (BA) faces a double whammy as it plans to release earnings on Wednesday at the same time workers vote on whether to accept a tentative deal reached with the union to end a five-week strike. There is. The company’s stock rose more than 3% in early trading Monday.
Meanwhile, the 10-year Treasury yield (^TNX) rose more than 6 basis points to 4.136%, its highest level since late July.
Oil prices rose as much as 2% along with a rise in Chinese stocks (000300.SS) as China continued to stimulate its economy by cutting key lending rates. Brent crude oil futures (BZ=F), the world benchmark, are trading around $74 per barrel, while West Texas Intermediate (CL=F) crude oil futures are above $70, indicating Israel’s next move on Iran. is also attracting attention.
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Monday, October 21, 2024 08:13 PDT
Disney board to announce Bob Iger replacement in early 2026: ‘key priority’
Yahoo Finance’s Alexandra Canal reports:
Disney (DIS) plans to announce its next CEO in early 2026, marking the first time the company has publicly announced a timeline for naming a successor to current CEO Bob Iger.
The media giant made the announcement on Monday, at the same time that current director and former Morgan Stanley (MS) CEO James Gorman will become the new chairman of the board, effective January 2, 2025. revealed that. He will step down as Morgan’s executive chairman. Stanley on December 31st.
“A key priority before us is the appointment of a new CEO, which we expect to announce in early 2026,” Gorman said in a press release. “The timing reflects the progress of the succession planning committee and board of directors, which will allow us to do so going forward.” There is plenty of time to succeed. ”
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Monday, October 21, 2024, 7:55 a.m. (Pacific Daylight Time)
Apple on track to close at record high price
After closing at a record high on Friday, Apple (AAPL) stock was on track to hit a new high on Monday.
The iPhone maker’s stock rose slightly, hovering around $235.80 per share.
On Friday, the stock closed at a record $235. Apple is up more than 22% since the beginning of the year.
Monday, October 21, 2024 07:24 PDT
Fed’s Logan strengthens rate-cutting strategy ‘gradually’
Yahoo Finance’s Jennifer Schonberger reports:
Dallas Fed President Laurie Logan reiterated Monday that policymakers will lower interest rates “gradually.” He cited a growing risk of a deterioration in the job market and a continued risk of inflation heating up again.
“If the economy develops as currently expected, a strategy of gradually lowering policy rates toward more normal or neutral levels will help manage risk,” Logan said in the Securities Industry and Financial Markets Association’s annual address. We will achieve our goals.” Meeting in New York.
Mr Logan said that while the economy was “strong and stable”, “significant uncertainties” remained in the outlook.
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Monday, October 21, 2024 06:48 PDT
Nvidia rises 1% to new intraday high
Nvidia (NVDA) stock rose more than 1.5% early Monday, helping to cushion a sharp decline in the Nasdaq Composite Index (^IXIC).
Shares of leading AI chip companies rose above $140 each, hitting an intraday high of $141.
The Nasdaq was trading near a flat line while Nvidia rose.
Monday, October 21, 2024, 6:30 a.m. (Pacific Daylight Time)
Stocks fall as investors await new financial results
Major averages opened slightly lower on Monday as investors awaited new earnings results this week.
The S&P 500 (^GSPC) was down about 0.2%, hitting a new closing high, and the Dow Jones Industrial Average (^DJI) was down 0.1%. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell 0.2%.
New quarterly earnings are expected to be announced this week, including one from Tesla (TSLA) on Wednesday. This week’s earnings reports include a number of well-known companies, including General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS).
Monday, October 21, 2024 06:25 PDT
Boeing shares rise on interim labor agreement
Boeing Co. (BA) shares rose as much as 4.5% in premarket Monday on news that the aircraft maker had reached a tentative labor agreement with workers who have been on strike for more than a month.
The deal increases wages by 35% over four years and increases Boeing’s 401(k) contributions, but does not include reinstatement of the pension plan, a key demand from unions. Analysts estimate the deal could add an additional $1 billion to the company’s wage-related costs.
The union is scheduled to vote on the contract on Wednesday, the same day Boeing releases its quarterly results. Analysts expect the aircraft maker to report a loss of $1.50 per share, according to Bloomberg consensus estimates.
Boeing has been struggling since aircraft parts tore apart one of its 737 Max 9 planes during a flight in January. The stock price has fallen more than 40% this year.
Of the Wall Street analysts who cover the stock tracked by Bloomberg, about 19 recommend the stock to buy, 11 have a hold rating and three have recommended a sell. Analysts, on average, expect Boeing stock to rise to about $192 a share over the next 12 months, implying an increase of more than 20%.
Monday, October 21, 2024 5:02 AM PDT
