S&P 500, Nasdaq gain to kick off huge week for markets

By Investor Empires On Jul 29, 2024

U.S. stocks rose after temporarily turning negative on Monday to start a big week filled with the Federal Reserve’s interest rate decision, a jobs report and big tech earnings.

The Dow Jones Industrial Average (^IXIC) recovered from earlier losses to hover near the equator, after the blue-chip index surged more than 650 points on Friday. The S&P 500 (^GSPC) rose 0.4% while the tech-heavy Nasdaq Composite (^IXIC) gained 0.6%.

Stocks started the week on a high note after Friday’s rally, as investors cheered a promising inflation reading that bolstered bets on interest rate cuts. But after a series of volatile sessions and a massive selloff in the technology sector, investors are on the lookout for surprises that could put the fragile rally to the test.

The Federal Reserve is not expected to take any action at the end of its meeting on Wednesday, despite signs that the U.S. economy and inflation have reached a sweet spot. Many on Wall Street see other reasons for the central bank to wait until September before taking action.

Read more: 32 Charts That Tell the Story of Today’s Markets and Economy

Friday’s July nonfarm payrolls report — which is expected to show cracks in the labor market — will play a role in post-facto calculations about the timing and depth of rate cuts in 2024.

Expected earnings this week from Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META) have also put investors on edge, given the sharp drop in stock prices that followed the first pair of “Magnificent Seven” results.

While investors wait, they will get a deluge of quarterly results from more than 150 S&P 500 companies. McDonald’s (MCD) earnings missed expectations across the board before the bell on Monday, as consumers pulled back on spending.

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Monday, July 29, 2024 at 12:45 PM EST

Investors are betting that the Federal Reserve will use its July meeting to set the stage for a September rate cut.

Yahoo Finance’s Jennifer Schoenberger says in her report:

Most Fed 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 pave the way for a rate cut at their next meeting in September.

Fed officials said they were getting closer to confidence that inflation is falling sustainably to their 2% target. They also said they were paying more attention to rising unemployment, another sign that cuts may be coming.

But most Fed watchers say the central bank still needs a little time to figure that out, while simultaneously preparing markets for the next big move.

“The pressure is on them,” said Esther George, former Kansas City Fed President. “I think they’re going to take September very seriously. It seems to me like we’re getting closer to a time when this decision becomes more important, and that’s why I’m confident.”

Read more here.
Monday, July 29, 2024 at 12:00 PM EST

S&P 500, Nasdaq back in green

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) rose 0.2% while the technology-heavy Nasdaq Composite (^IXIC) rose 0.2% after briefly turning negative.
Monday, July 29, 2024 at 11:30 AM EST

Starbucks is expected to post weak sales as it continues to promote pop-up pearls and value offerings.

Brooke De Palma of Yahoo Finance says in her report:

Starbucks (SBUX) investors are cautious ahead of its earnings report due out Tuesday.

The company’s shares are down about 28% from a year ago, when the coffee giant painted a picture of a resilient consumer with 10% sales growth. Now, a different outlook is at stake.

Third-quarter revenue is expected to grow 0.37% to $9.20 billion, according to Bloomberg estimates. Adjusted earnings per share are expected to be $0.92, compared with $1.00 a year ago.

Read more here.
Monday, July 29, 2024 at 11:27 AM EST

Stocks erase session gains, Nasdaq turns negative

Stocks erased gains from the previous session to hover below the flat line on Monday.

The Dow Jones Industrial Average (^DJI) lost nearly 100 points after initially opening higher. The S&P 500 (^GSPC) fell 0.1%, while the tech-dominated Nasdaq Composite (^IXIC) also fell below the flat line after rising 0.9%.
Monday, July 29, 2024 at 10:45 AM EST

Bitcoin hovers around $69K after Trump’s pro-crypto speech

Bitcoin (BTC-USD) was trading near the $69,000 level per coin 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 the Bitcoin 2024 conference in Nashville, Tennessee, on Saturday. The Republican presidential candidate said he plans to make the United States the “cryptocurrency capital of the world” if elected in November. He also proposed creating a “national bitcoin reserve.”

Read more here.
Monday, July 29, 2024 at 10:00 AM EST

McDonald’s shares rise despite missing Q2 profit as consumers cut back on eating out

McDonald’s (MCD) shares rose Monday morning, recovering from an initial negative reaction at market open following the fast-food chain’s quarterly results.

Brooke De Palma of Yahoo Finance says in her report:

McDonald’s customers are tightening their belts again in the second quarter of the year, as they struggle to pay for their Big Mac meal.

On Monday morning, the company reported second-quarter earnings that missed Wall Street estimates on revenue, profits and same-store sales, proving that even America’s largest fast-food company is not immune to tough macroeconomic conditions.

Read more here.

Shares of the fast-food chain initially fell, but quickly recovered to rise about 3% in early trading.
Monday, July 29, 2024 at 9:30 AM EST

Stocks open higher at start of big week on Wall Street

Stocks rose Monday at the start of a big week filled with a Federal Reserve interest rate decision, a jobs report and tech earnings.

The Dow Jones Industrial Average (^DJI) was up slightly, after recently rising more than 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 is scheduled to hold its two-day meeting this week, and Fed officials are not expected to cut interest rates on Wednesday. Most investors believe that policymakers will wait until September to cut rates.

Major tech companies are scheduled to report earnings this week, including Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META).
Monday, July 29, 2024 at 5:49 AM EST

Morning planner that makes you think

This starts a very busy week for investors.

Investors are starting the week in shock after last week’s sell-off in technology stocks may be just beginning, Yahoo Finance’s Sina Smith reports.

RBC strategist Lori Calvasina puts some context around the tech hiatus below.

The hottest stocks start to slow down in July. (Red blood cells)