Stocks fell on Monday as 10-year Treasury yields rose and investors braced for a week of top-tier earnings that could push or pull a record high.
The S&P 500 (^GSPC) fell nearly 0.3%, pulling away from a new all-time closing high and its sixth straight weekly win. The Dow Jones Industrial Average (^DJI) is down nearly 0.7%, while the Nasdaq Composite (^IXIC) is hovering near the flat line.
AI chip heavyweight Nvidia (NVDA) touched an intraday record briefly during the session while iPhone maker Apple (AAPL) was on track to hit a closing high if its modest gains continue.
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% in early trading on Monday.
Meanwhile, the 10-year Treasury yield (^TNX) rose more than 6 basis points to 4.136%, the highest level since the end of July.
Oil prices rose as much as 2% alongside gains in Chinese stocks (000300.SS) as China’s stimulus campaign continues with a cut in key lending rates. Global benchmark Brent crude futures (BZ=F) traded near $74 per barrel, while West Texas Intermediate crude futures (CL=F) topped $70, also with eyes on Israel’s next move on Iran.
He lives10 updates
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.
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.
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.
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.
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%.
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.
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.
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.
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%.
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