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Nasdaq is rising, S&P 500 is trading at record highs and earnings are high

Posted on by Kennedy
Nasdaq is rising, S&P 500 is trading at record highs and earnings are high

U.S. stocks traded mixed on Monday but held near record highs as investors braced for the next set of earnings from major banks to test this rally and the chances of an economic “soft landing.”

The S&P 500 (^GSPC) rose about 0.6% and headed for a new record after closing above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite (^IXIC) rose around 1%, while shares of Nvidia (NVDA) hit new highs with a gain of 2.2%. The Dow Jones Industrial Average (^DJI) slipped 0.2%.

Results take center stage as the first full week begins with third quarter results. The course of the season is considered crucial for the stock rally as the bull market turns two years old.

The Dow and S&P 500 capped a successful week with new records after earnings from JPMorgan Chase (JPM) and Wells Fargo (WFC) largely passed Wall Street's test. Investors continue to focus on large banks. The reports from Goldman Sachs (GS), Citi (C) and Bank of America (BAC) are due on Tuesday, Morgan Stanley (MS) will be published on Wednesday.

At the same time, there remains uncertainty about whether the Federal Reserve will cut interest rates again. Some analysts argue that a favorable jobs report and data showing “sticky” consumer and wholesale inflation are an argument for not forgoing a rate cut in November. Retail sales data later in the week will feed into the debate over whether the economy has held up in the face of Fed policy – the preferred soft landing.

Read more: What the Fed's interest rate cut means for bank accounts, CDs, loans and credit cards

On the corporate front, Boeing (BA) shares fell nearly 3% amid questions about the troubled aircraft maker's future. The company, which posted record losses of $5 billion in the third quarter, has cut 17,000 jobs as a month-long strike ravages production.

Elsewhere, Chinese stocks initially wobbled as investors seized on Beijing's latest stimulus promise, but they managed to rise and revive their recent historic rally.

Live5 updates

  • TSMC stock hits record high, rejoins $1 trillion club

    Nvidia (NVDA) supplier TSMC (TSM) saw shares of its U.S.-listed shares rise more than 1% in early trading, with the stock hitting a new intraday record price of $193.96 per share and rejoined the $1 trillion club.

    TSMC shares hit an all-time high of over $193 back in July after the company reported second-quarter earnings, briefly pushing its market capitalization above $1 trillion before earnings retreated again. The stock fell back to earth as investors weighed its lofty valuation multiples, geopolitical risks and concerns about AI demand.

    TSMC last week reported third-quarter revenue of NT$759.7 billion ($23.6 billion), beating Bloomberg consensus estimates of NT$748.3 ($23.3 billion). ), as well as the company's previous forecast of $22.4 billion to $23.2 billion.

    About 23 Wall Street analysts covering the stock tracked by Bloomberg recommend buying TSMC shares, while only one analyst has a hold rating. Analysts expect the stock to rise to $216.59 in the next 12 months, according to Bloomberg data.

  • Boeing loses more than 2% as plane maker plans to cut 10% of workforce, strike enters 5th week,

    Shares of Boeing (BA) fell more than 2% as investors question the future of the troubled aircraft maker amid job cuts and a strike that is now in its fifth week.

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

    “Beyond addressing our current environment, recovering our business requires difficult decisions and we must make structural changes to ensure we remain competitive and able to deliver to our customers over the long term,” CEO Kelly Ortberg said in a message to employees posted on Boeing website on Friday.

    An ongoing strike by Boeing's largest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly for the company on several fronts.

    S&P Global put the cost of the strike, which began Sept. 1, at about $1 billion a month. Last week, talks between Boeing and IAM collapsed and the company withdrew its contract proposal.

  • Nvidia rises 2% and is close to the record

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

    The stock was a few dollars away from its all-time intraday high just above $140.76.

  • The S&P 500 heads for a new record, the Dow slips as focus shifts to earnings

    Major averages opened mixed on Monday as investors focused on upcoming earnings from major banks and other quarterly results from major companies.

    The S&P 500 (^GSPC) rose about 0.3% and was aiming for a new record high. On Friday, the broader index closed above 5,800 for the first time.

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

    Earnings season is in full swing this week, with Citi (C), United Airlines (UAL), AI chip equipment maker ASML (ASML), Netflix (NFLX) and American Express (AXP), among others, expected to report publish.

    Oil futures fell more than 2% as OPEC cut its demand forecast for 2024 and 2025. Traders also reacted to a lack of details from China's finance minister over the weekend on any major new stimulus spending.

  • Nvidia shares are aiming for a record high and top spot as the most valuable company ahead of Apple

    Nvidia (NVDA) shares rose 1% to $136.22 in premarket trading. This puts the chipmaker on track to surpass its previous record closing price of $135.58 in June.

    The AI ​​chip maker's shares rose sharply in October following a massive $6.6 billion funding round for ChatGPT maker OpenAI, much of which will flow back to Nvidia. AI executives, including Nvidia CEO Jensen Huang, report huge demand for the company's latest Blackwell chips. The stock is up 8% in the past week.

    Nvidia's gains put the company on track to once again claim the rank of the world's No. 1 most valuable company by market capitalization. It is currently ranked #2 behind Apple (AAPL). The chipmaker's market cap was $3.3 trillion as of Monday, while Apple's was $3.46 trillion. Apple, Microsoft (MSFT) and Nvidia swapped places among the top three companies last year.

    Nvidia is scheduled to report earnings on November 19th. Wall Street analysts expect the company to report revenue of $33 billion, up 82% from a year ago, according to Bloomberg consensus estimates. About 90% of those who cover the stock and are tracked by Bloomberg recommend buying Nvidia shares.

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