Dow slips as S&P 500, Nasdaq wobble with flood of earnings ahead

Stocks wobbled on Monday as investors braced for a packed week of top-tier earnings that could drive or drag on a record-setting rally.

The S&P 500 (^GSPC) dropped almost 0.1%, coming off a fresh all-time closing high and a sixth weekly win in a row. The Dow Jones Industrial Average (^DJI) edged almost 0.2% lower, while the tech-heavy Nasdaq Composite (IXIC) hovered near the flatline.

Whether records keep rolling in rides in large part on corporate results in the coming days. Earnings season ramps up this week, as over 100 S&P 500 companies are lined up to report. So far, 80% of third quarter updates from those on the benchmark have topped the mark.

Investors are on edge for Tesla’s (TSLA) report on Wednesday, after its robotaxi unveiling fell short of expectations. The EV maker is the highlight of the week amid questions about Big Tech performance, even after Netflix’s (NFLX) strong kickoff to the megacap season.

General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big hitters on the earnings docket this week.

Boeing (BA) faces a double-whammy on Wednesday, when it’s expected to release 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 plane maker rose over 3% in early Monday trading.

Meanwhile, the 10-year Treasury yield (^TNX) climbed over 6 basis points to 4.136%, the highest level since the end of July.

Oil prices rose as much as 2% alongside gains for Chinese stocks (000300.SS) as China’s stimulus push continued with a cut to key lending rates. Global benchmark Brent futures (BZ=F) traded near $74 a barrel, while West Texas Intermediate (CL=F) crude futures topped $70, with Israel’s next Iran move also in focus.

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Mon, October 21, 2024 at 3:48 PM GMT+2

Nvidia climbs 1% to touch intraday record high

Nvidia (NVDA) climbed more than 1.5% on Monday, helping mitigate a bigger decline in the Nasdaq Composite (IXIC).

Shares of the AI chip heavy weight rose to hover above $140 each, briefly touching an intraday high of $141.

The Nasdaq was trading near the flatline as Nvidia rose.
Mon, October 21, 2024 at 3:30 PM GMT+2

Stocks dip as investors await fresh batch of earnings

The major averages opened slightly lower on Monday as investors await a fresh batch of earnings this weeek.

The S&P 500 (^GSPC) dropped roughly 0.2%, coming off a fresh all-time closing high while the Dow Jones Industrial Average (^DJI) edged 0.1% lower. The tech-heavy Nasdaq Composite (IXIC) shed 0.2%.

A fresh batch of quarterly results will roll in this week including Tesla (TSLA) on Wednesday, General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big names on the earnings docket this week.
Mon, October 21, 2024 at 3:25 PM GMT+2

Boeing stock rallies on tentative labor deal

Boeing (BA) stock jumped as much as 4.5% in Monday’s premarket on news that the aircraft manufacturer has reached a tentative labor deal with workers who’ve been on strike for more than one month.

The contract would raise pay 35% over four years and increase Boeing’s 401(k) contributions, but it would not reinstate pension plans — a major union demand. Analysts estimate the contract could lead to an additional $1 billion in wage-related expenses for the company.

The union will vote on the contract on Wednesday, the same day Boeing reports its quarterly earnings. Analysts expect the plane maker to report an earnings loss per share of $1.50, according to Bloomberg consensus estimates.

Boeing has struggled since an airplane part ripped off one of its 737 Max 9 planes during a flight in January. Shares are down over 40% this year.

Of the Wall Street analysts covering the stock tracked by Bloomberg, some 19 recommend buying shares, while 11 have a Hold rating, and three say to sell. On average, analysts see Boeing shares rising to about $192 each over the next 12 months, implying a more than 20% gain.
Mon, October 21, 2024 at 2:02 PM GMT+2

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