Dow drops 300 points, Nvidia, Apple close at fresh records

By Investor Empires On Oct 21, 2024

Stocks closed mixed on Monday as 10-year Treasury yields rose and investors braced for a busy week of top-tier earnings that could push or pull a record high.

The S&P 500 (^GSPC) fell nearly 0.2%, pulling away from a new all-time closing high and its sixth straight weekly win. The Dow Jones Industrial Average (^DJI) fell more than 300 points, closing down about 0.8%, while the Nasdaq Composite (^IXIC) closed up 0.2%.

Shares of AI chip heavyweight Nvidia (NVDA) rose more than 4% to close at an all-time high, while iPhone maker Apple (AAPL) also had a record close.

Meanwhile, the 10-year Treasury yield (^TNX) rose 10 basis points to 4.18%, the highest level since July.

Whether the records will continue to roll in travel will largely depend on the companies’ results in the coming days. Earnings season is heating up this week, as more than 100 S&P 500 companies prepare to report earnings. So far, 80% of Q3 updates have exceeded those in the benchmark.

Investors are on edge over Tesla’s (TSLA) report on Wednesday, after the unveiling of its robot fell short of expectations. The electric car maker is the highlight of the week amid questions about the performance of big tech companies, even after Netflix’s strong start to its Megacap season.

General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among many other major companies on the earnings chart this week.

Boeing ( BA ) faces a double whammy on Wednesday, as it is expected to report 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 aircraft maker rose more than 3%.

Live coverage has ended14 updates

Monday, October 21, 2024 at 4:01 PM EST

Stocks finished the session mixed with Nvidia and Apple closing to a new record

Stocks fell on Monday as the 10-year Treasury yield rose to its highest level since July, and investors braced for a busy week of top-tier earnings that could push or pull a record high.

The S&P 500 (^GSPC) fell about 0.2%, pulling away from its all-time closing high on Friday. The Dow Jones Industrial Average (^DJI) lost more than 300 points, snapping a three-day winning streak, while the Nasdaq Composite (^IXIC) closed up about 0.2%.

Interest rate sensitive stocks such as real estate fell during the session as the 10-year Treasury note rose 10 basis points to 4.18%.

Meanwhile, shares of AI chip heavyweight Nvidia (NVDA) rose more than 4% to a new record high, while iPhone maker Apple (AAPL) achieved a record close.

Streaming giant Netflix (NFLX) also rose to a record high during Monday’s session.
Monday, October 21, 2024 at 3:36 PM EST

Elon Musk’s million-dollar promises and Kamala Harris’ record mark spark the end of the 2024 financial race

Ben Warschkul from Yahoo Finance reports:

A tumultuous weekend on the campaign trail highlighted two major trends in the 2024 campaign cash race: Kamala Harris’ outsized fundraising prowess and Donald Trump’s reliance on a group of friendly billionaires.

Vice President Harris’ campaign beat Trump by more than 3-to-1 in September, concluding a race lasting less than three months as the nominee that saw her raise an unprecedented $1 billion.

Trump’s formal process has been delayed. But the former president and his allies tried to make up the difference with an influx of billionaire donations directed to outside groups supporting his candidacy.

Read more here.
Monday, October 21, 2024 at 3:12 PM EST

Qualcomm unveils an AI smartphone chip as the industry moves towards AI phones

Dan Hawley reports:

The smartphone industry is relying on artificial intelligence to accelerate device sales after years of slow growth. But to do so, it must give consumers a reason to buy new phones more often.

Qualcomm (QCOM) is aiming for its latest smartphone chips to do just that, adding a number of new AI capabilities on board that it says will allow you to do things like actually adjust the lighting in your video calls in real time and let the device recognize On objects in the real world without having to access the web.

On Monday, Qualcomm shares fell nearly 2%.

Read more here.
Monday, October 21, 2024 at 2:39 PM EST

Profits beats are rewarded more than usual

An early trend is emerging through the first part of quarterly earnings reports.

For the first time since 2020, companies that beat Wall Street expectations on revenue and earnings are seeing bigger stock moves than companies that miss both metrics.

Across earnings for 71 companies in the S&P 500, companies that beat expectations on both measures see an average stock gain of 3.15% over the next day, higher than the 1.49% average seen since 2000, according to research by Bank of America. Meanwhile, companies missing revenue and earnings estimates see their shares drop 2.61% the next day, below the average since 2000 of 2.44%.

“With big tech earnings looming, the likelihood of continued large earnings reactions strengthens the case for owning Tech vol through the end of October,” the Bank of America Securities strategist team wrote in a note Monday morning.

Mike Wilson, chief U.S. equity strategist at Morgan Stanley, saw this theme in a note to clients Sunday evening as well.

“The bottom line is that dispersion between stocks and even within sectors is likely to remain high, as the market appears to clearly demarcate earnings beats from misses,” Wilson wrote.
Monday, October 21, 2024 at 1:43 PM EST

GM Q3 earnings preview: What to watch

Pras Subramanian reports:

Investors are expecting more upbeat results from General Motors (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 good US sales. However, the focus will be on questions related to GM’s electric vehicle business and inventory management.

For the third quarter, GM is expected to report revenue of $44.69 billion according to the Bloomberg consensus, sequentially lower than the roughly $48 billion last quarter, but that’s expected given its historically strong second-quarter sales. GM’s third-quarter revenue is expected to be higher than a year ago.

Read more here.
Monday, October 21, 2024 at 12:59 PM EST

Netflix hits new daily high

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.
Monday, October 21, 2024 at 11:56 AM EST

Gold hits record high, silver jumps to 52-week high as precious metals outperform broader markets

Gold and silver’s gains show no sign of slowing as investors continue to flock to the precious metals.

Gold futures (CG=F) rose 0.8% on Monday to touch an intraday high above $2,750 an ounce. Silver futures (SI=F) rose more than 3% to briefly exceed $34 an ounce, a 12-year high.

Both metals outperformed the broader markets. Gold bullion is up about 26% and silver is up about 35% since the start of 2024, compared to the S&P 500 (^GSPC)’s gain of 19%.

Central banks are buying the yellow metal, and investors are increasingly entering physically backed gold ETFs amid expectations of lower interest rates.
Monday, October 21, 2024 at 11:13 AM EST

Disney board to announce Bob Iger’s successor in early 2026: ‘critical priority’

Alexandra Channel reports from Yahoo Finance:

Disney (DIS) plans to announce its next CEO in early 2026, the first timeline the company has publicly offered for appointing a successor to current CEO Bob Iger.

The media giant made the announcement on Monday while simultaneously revealing that current board member and former CEO of Morgan Stanley (MS) James Gorman will serve as the new Chairman of the Board effective January 2, 2025. He will leave his position as CEO of Morgan Stanley on December 31.

“Our critical priority is the appointment of a new CEO, which we now expect to announce in early 2026,” Gorman said in a press release. “This timing reflects the progress being made by the Succession Planning Committee and Board of Directors, and will allow ample time for a successful transition before Bob Iger’s contract expires in December 2026.”

Read more here.
Monday, October 21, 2024 at 10:55 AM EST

Apple is on track to close at a new record high

Apple (AAPL) stock was on track to hit a new high on Monday after closing at a record high on Friday.

Shares of the iPhone maker rose slightly to hover near $235.80 per share.

The stock closed Friday at a record high of $235. Year to date, Apple shares are up more than 22%.
Monday, October 21, 2024 at 10:24 AM EST

Fed’s Logan doubles down on ‘gradual’ rate cut strategy

Jennifer Schoenberger of Yahoo Finance reports:

Dallas Fed President Lori Logan confirmed on Monday that she sees policymakers cutting interest rates “gradually.” She pointed to the increasing risk of a deterioration in the labor market and the risk of inflation continuing to rise again.

“If the economy develops as I currently expect, a strategy of gradually lowering the interest rate towards a more normal or neutral level could help manage risks and achieve our goals,” Logan said in a speech at the annual meeting of the Securities Industry and Financial Markets Association. Meeting in New York.

Logan said the economy was “strong and stable” but that “significant uncertainties” remained over the outlook.

Read more here.
Monday, October 21, 2024 at 9:48 AM EST

Nvidia stock rose 1% to a record high on the day

Nvidia (NVDA) stock rose more than 1.5% early Monday, helping cushion a larger decline in the Nasdaq Composite Index (^IXIC).

Shares of the heavyweight AI chip rose above $140 each, briefly touching an intraday high of $141.

The Nasdaq was trading near the flat line as Nvidia stock rose.
Monday, October 21, 2024 at 9:30 AM EST

Shares fell as investors awaited a new set of earnings

The major averages opened slightly lower on Monday as investors awaited a new batch of earnings this week.

The S&P 500 (^GSPC) fell nearly 0.2%, pulling away from a new all-time closing high, while the Dow Jones Industrial Average (^DJI) fell 0.1%. The Nasdaq Composite (^IXIC) fell 0.2%.

A new set of quarterly results will be released this week, including those from Tesla (TSLA) on Wednesday. General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among many other big names on the earnings chart this week.
Monday, October 21, 2024 at 9:25 AM EST

Boeing shares rise after initial labor agreement

Boeing ( BA ) stock jumped as much as 4.5% in the premarket on Monday after news that the plane manufacturer had reached a tentative labor agreement with workers who have been on strike for more than a month.

The contract would raise wages by 35% over four years and increase Boeing’s 401(k) contributions, but Retirement plans will not be reinstated – A major union demand. Analysts estimate that the contract could result in an additional $1 billion in wage-related expenses for the company.

Union will Vote on the contract on Wednesdayon the same day that Boeing announces its quarterly earnings. Analysts expect the planemaker to report a loss per share of $1.50, according to Bloomberg estimates.

Boeing has been suffering since part of the plane separated from one of its 737 MAX 9 aircraft during a flight last January. Shares are down more than 40% this year.

Among Wall Street analysts tracked by Bloomberg, 19 recommend buying the stock, while 11 have a Hold rating, and three recommend selling. On average, analysts see Boeing shares rising to about $192 per share over the next 12 months, implying an upside of more than 20%.
Monday, October 21, 2024 at 8:02 AM EST

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