U.S. stocks rose on Monday as fears of war in the Middle East receded and ahead of a crucial week filled with Big Tech earnings, inflation updates and a key monthly jobs report.
The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose about 0.6%, and the S&P 500 Index (^GSPC) rose 0.5%. The Dow Jones Industrial Average (^DJI) also rose 250 points, or about 0.6%.
The market was supported by Israel’s decision to limit its retaliatory attacks against Iran to military targets rather than oil and nuclear facilities, as had been feared. Oil futures fell nearly 6%, with Brent crude (BZ=F) dropping to nearly $71 per barrel and West Texas Intermediate (CL=F) falling to nearly $67.
Attention has been focused on tech stocks, with the Nasdaq Composite Index rebounding from Friday’s decline to close near record highs. Five stocks are scheduled to announce their financial results.
Investors are watching the performance of Alphabet (GOOGL, GOOG), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta (META) to propel the S&P 500 to new heights. But questions remain about whether Big Tech companies’ investments in AI are paying off in profits. Some on Wall Street are predicting that the tech giants’ earnings growth may be the slowest in six quarters.
The report is the highlight of a very busy week of earnings reports, with 169 S&P 500 companies expected to announce updates. Shares of Philips (PHG) fell 16% after the medical device maker cut its full-year sales forecast, citing a sharp drop in demand in China. Ford (F) will be on the record after the bell Monday.
At the same time, investors are bracing for a surge in economic indicators that could test their “soft landing” bets. At the forefront are the latest readings of the Federal Reserve’s preferred inflation indicator and the October jobs report, both of which will help policymakers decide whether to cut interest rates at their November meeting. considered important.
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
Elsewhere, Japanese stocks rose after Japan’s ruling party failed to maintain a majority in Sunday’s election, highlighting political risks to markets just days before the U.S. presidential vote. .
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Bitcoin remains above $68,000 per token
Bitcoin price (BTC-USD) rose more than 1.5% on Monday morning to over $68,000 per token. The cryptocurrency has risen to a June high of just over $69,000 within the past 24 hours.
Cryptocurrency stocks also rose, with Mara Holdings (MARA), MicroStrategy (MSTR), and Riot Blockchain (RIOT) all rising more than 4%.
DJT soars 20% as investors bet on Trump victory
Trump Media & Technology Group stock (DJT) rose as much as 20% on Monday morning, extending its rally to five weeks.
Shares of social media companies rose to their highest since June as investors bet on former President Donald Trump’s odds of winning the November election improving.
Shares have risen more than 275% since Sept. 26, when the stock hit its lowest intraday level since the company behind Truth Social went public.
Energy stocks lag as oil prices fall 5%
Energy stocks lagged the S&P 500 index on Monday as oil prices fell more than 5% following Israeli retaliatory strikes that spared Iranian oil infrastructure.
The S&P Energy Select (XLE) ETF was down about 1% in early trading.
Spotify stock rises after Wells Fargo names Spotify as top candidate
The stock rose nearly 1% in morning trading after Wells Fargo (WFC) named Spotify (SPOT) its top priority, maintaining an Overweight rating and setting a price target of $420 per share. The price was raised from $470.
Spotify soared more than 120% as the audio streaming giant completed its turnaround plan. Following poor performance in the second half of 2022, Spotify announced layoffs, raised prices, changed its loyalty model and secured a major podcast deal. The company reported record profits in its latest quarterly earnings report this summer.
Wells Fargo analyst Stephen Cahall said in a note to investors on Monday that Spotify “continues to demonstrate success with long-term profit growth.”
Spotify will report third-quarter results on Nov. 12, with analysts predicting adjusted earnings per share rose more than 400% to $1.82 and revenue rose 19% to 4.4%, according to Bloomberg consensus estimates. It is expected to be worth $1 billion. Wall Street analysts covering the stock expect the stock to rise to an average of $410 over the next 12 months, according to Bloomberg data.
Stock prices rise on big tech earnings next week
Stocks opened higher on Monday, kicking off a pivotal week filled with Big Tech earnings, inflation updates, and the all-important monthly jobs report.
The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose about 0.7%, and the S&P 500 Index (^GSPC) rose 0.5%. The Dow Jones Industrial Average (^DJI) also rose about 0.5%.
Oil prices fell nearly 6% after Israel’s retaliatory attacks on Iran spared the country’s oil infrastructure. Brent crude oil (BZ=F) hovered around $71 a barrel, and West Texas Intermediate (CL=F) hovered around $67 a barrel in early trading.
Investors are waiting for earnings this week from Alphabet (GOOGL, GOOG), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta (META).
The monthly inflation report and employment data for September are also due to be released this week.
Boeing proposes nearly $19 billion in stock sales to strengthen balance sheet and avoid rating downgrade
Boeing stock (BA) was slightly lower in the premarket session after the aircraft maker launched a roughly $19 billion stock sale to shore up liquidity and avoid a credit downgrade.
The company plans to sell approximately 90 million common shares and approximately $5 billion in depository shares. Wall Street analysts had widely expected a major acquisition after a difficult year for aircraft manufacturers.
S&P Global recently placed Boeing on CreditWatch Negative, raising the possibility of a downgrade if the company’s machinists’ union strike continues through the end of the year.
Last week, a majority of workers rejected the latest labor contract proposal from Boeing. Earlier this month, the jet maker announced it would cut about 17,000 jobs, or 10% of its workforce.
Boeing had $56.9 billion in senior unsecured debt as of Sept. 30, according to company filings.
good morning. Here’s what happened today:
Israel’s attack on Iran reduces oil tanks by 5%, saving crude oil infrastructure
Oil prices plunged more than 5% after Israel’s expected retaliatory strikes against Iran over the weekend spared the country’s oil infrastructure.
West Texas Intermediate (CL=F) fell below $68 a barrel, and international benchmark Brent crude oil (BZ=F) traded below $72 a barrel.
Tel Aviv’s attack on Iranian military facilities early Saturday morning was carried out in retaliation for Tehran’s October 1 missile attack.
Oil prices were volatile in the weeks leading up to the retaliation, with Brent reaching $80 a barrel as traders speculated that Israel would attack Iran’s oil infrastructure. The White House recommended against targeting the country’s oil and nuclear facilities.
