S&P 500 trades at record highs, Nasdaq rises with earnings on the floor

U.S. stocks rose to record highs on Monday as investors braced for the rally and the next batch of big bank earnings to test the prospects of an economic “soft landing.”

The S&P 500 (^GSPC) advanced 0.7% to a fresh record after closing above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite ( ^IXIC ) rose about 1% as shares of Nvidia ( NVDA ) surged about 3.5% to new highs. The Dow Jones Industrial Average (^DJI) was above the flatline.

Earnings dominated the first full week of third-quarter results. As the bull market turns 2, how the season plays out is considered key to the stock’s upswing.

The Dow and S&P 500 hit new record highs for the week after JPMorgan Chase ( JPM ) and Wells Fargo ( WFC ) earnings largely passed Wall Street’s test. Investors’ focus is on big banks, with reports from Goldman Sachs ( GS ), Citi ( C ), and Bank of America ( PAC ) on Tuesday’s docket, and Morgan Stanley ( MS ) due on Wednesday.

At the same time, there is still uncertainty about whether the Federal Reserve will cut interest rates again. Some analysts argue that a benign jobs report and data showing “sticky” consumer and headline inflation mean no rate cut in November. Retail sales data later in the week will feed into the debate over whether the economy is holding up in the face of Fed policy – the preferred soft landing.

Read More: What Fed Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

On the corporate front, shares of Boeing ( BA ) fell nearly 3% amid questions about the crisis-hit planemaker’s future. The company, which faced a third-quarter loss of $5 billion, cut 17,000 jobs as a month-long strike affected production.

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Monday, October 14, 2024 10:36 AM EDT

The Dow climbs into green territory, close to record highs

The Dow Jones Industrial Average (^DJI) entered the green at 10:30 am ET and moved to a new intraday record high. The blue-chip index fell as much as 0.3% shortly after the market opened following a record result on Friday.

Meanwhile the S&P 500 (^GSPC) rose 0.6% on Monday, on pace for another record close.
Monday, October 14, 2024 10:13 AM EDT

TSMC stock hit a record high, rejoining the $1 trillion club

Shares of Nvidia ( NVDA ) supplier DSMC ( DSM ) rose more than 1% in early trading, hitting a new record high at $193.96 a share intraday and rejoining the $1 trillion club.

TSMC shares previously hit an all-time high above $193 in July after the Taiwanese contract chipmaker reported second-quarter earnings. That surge briefly put its market cap above $1 trillion. As investors weighed its high valuation multiples, geopolitical risks and concerns about AI demand, the stock came crashing back down to earth.

TSMC last week disclosed third-quarter revenue of 759.7 billion New Taiwan dollars ($23.6 billion). That was $23.2 billion, up from NT$748.3 ($23.3 billion) expected and the company’s prior guidance of $22.4 billion, according to Bloomberg data.

About 23 Wall Street analysts covering stocks tracked by Bloomberg recommend buying TSMC stock, while only one analyst has a hold rating. Analysts see the shares rising to $216.59 each over the next 12 months, according to Bloomberg data.
Monday, October 14, 2024 at 10:00 am EDT

Boeing fell more than 2% as the strike entered its 5th week, cutting 10% of its workforce.

Shares of Boeing ( BA ) fell more than 2% as investors questioned the future of the crisis-hit planemaker. The job cuts and strike are now in their fifth week.

On Friday, the company said it would cut 17,000 jobs, or 10% of its workforce.

“Beyond navigating our current environment, restoring our company requires tough decisions and structural changes to ensure we can remain competitive and deliver for our customers for the long term,” Boeing CEO Kelly Ortberg said in a message to employees. Friday website.

The strike, led by Boeing’s largest union, the International Association of Machinists and Aerospace Workers (IAM), has been costly for the company on several fronts.

S&P Global estimated the cost of the strike, which began on September 1, at about $1 billion per month. Last week, talks between Boeing and IAM broke down, with the company withdrawing its contract proposal.
Monday, October 14, 2024 at 9:46 am EDT

Nvidia rose 2%, close to a record

Nvidia ( NVDA ) stock rose more than 2% at the open on Monday, surpassing its June record high of $135.58.

The stock was two dollars away from its all-time intraday high of $140.76.
Monday, October 14, 2024 at 9:30 a.m. EDT

S&P 500 eyes new record, Dow slips as focus shifts to earnings

Major averages started mixed on Monday as investors focused on upcoming big bank earnings and other quarterly results from major companies.

The S&P 500 (^GSPC) advanced roughly 0.3% to hit a new record high. On Friday, the broad index closed above 5,800 for the first time.

The tech-heavy Nasdaq Composite ( ^IXIC ) rose 0.5% after the bell on Monday, while the Dow Jones Industrial Average ( ^DJI ) fell 0.2% from its Friday record close.

Citi ( C ), United Airlines ( UAL ), AI chip equipment maker ASML ( ASML ), Netflix ( NFLX ) and American Express ( AXP ) continue to be in full swing this week.

Oil futures fell more than 2% as OPEC cut its demand forecast for 2024 and 2025. Traders also reacted to the lack of details from China’s finance minister over the weekend on large-scale new stimulus spending.
Monday, October 14, 2024 at 9:16 am EDT

Nvidia stock ranks higher and ranks first as the most valuable company ahead of Apple

Nvidia ( NVDA ) shares rose 1% to $136.22 in pre-market trading, putting the chipmaking company on track to surpass its previous record closing price of $135.58 posted in June.

Shares of the AI chipmaker made significant gains in October following a $6.6 billion funding round for ChatGPT maker OpenAI, most of which will be paid back to Nvidia. AI leaders, including Nvidia CEO Jensen Huang, have cited frenzied demand for the company’s latest Blackwell chips. Its stock has gained 8% in the past week.

Nvidia’s gains put it on track to once again rank among the world’s most valuable companies by market capitalization. It is currently ranked No. 2 behind Apple ( AAPL ). The chipmaker’s market capitalization was $3.3 trillion on Monday, while Apple’s was $3.46 trillion. Apple, Microsoft ( MSFT ) and Nvidia have traded as the top three companies since last year.

Nvidia is expected to report earnings on Nov. 19, according to Bloomberg consensus estimates. Wall Street analysts expected to report revenue of $33 billion, up 82% from a year earlier. 90% of those covering Bloomberg stocks recommend buying Nvidia stock.