Stock market today: Dow jumps close to 200 points to hit all-time high
07/16/2024 03:09
The impact on markets of the Trump shooting is overshadowing fresh Wall Street bank earnings.
US stocks gained ground Monday as investors wagered that presidential candidate Donald Trump is now more likely to reclaim the White House after an unsuccessful assassination attempt strengthened his chances of victory.
The Dow Jones Industrial Average (^DJI) rose about 0.4%, closing at a new all-time high above the 40,000 threshold. The S&P 500 (^GSPC) added about 0.3%, just below a record finish, while the tech-heavy Nasdaq Composite (^IXIC) gained 0.4%.
Stocks are building on a roaring rally as second-quarter results from more big US banks rolled in. Goldman Sachs (GS) reported a profit surge of 150% amid investment banking strength, a sign that Wall Street is rebounding from a two-year drought. Shares rose about 2.5%. Meanwhile, BlackRock's (BLK) profit beat estimates as assets under management hit a record of $10.6 trillion.
But the market was focused on the potential fallout from the assassination attempt on Trump at a rally on Saturday. Bets ramped up on a win in November's presidential election for the Republican frontrunner, seen as likely to cut taxes, raise trade tariffs, and ease up on regulation.
The benchmark 10-year Treasury yield (^TNX) was up 4 basis points to trade at around 4.2%, while the 30-year yield gained (^TYX) to steepen the yield curve. The dollar (DX=F) edged up, and bitcoin (BTC-USD) surged to a two-week high amid speculation about a coming Trump victory.
Meanwhile, shares of Trump Media & Technology (DJT) ended the day more than 30% higher. Crypto-related stocks also got a boost.
Investors also took stock of remarks from Fed Chair Jerome Powell, who spoke at an event in Washington, D.C., on Monday and reiterated that recent inflation readings show progress in the fight against inflation. His speech appeared to reinforce market expectations that rate cuts will arrive as soon as September.
Live10 updates
Dow closes at a record high
US stocks gained ground Monday as investors wagered that presidential candidate Donald Trump is now more likely to reclaim the White House after an unsuccessful assassination attempt strengthened his chances of victory.
The Dow Jones Industrial Average (^DJI) rose about 0.4%, closing at a new all-time high. The S&P 500 (^GSPC) added about 0.3%, just below a record finish, while the tech-heavy Nasdaq Composite (^IXIC) gained 0.4%.
AutoNation warns CDK Global hack to hit second quarter earnings
AutoNation (AN), the second-largest dealership group in the US by market cap, warned that the CDK Global software hack will have a significant impact on its second quarter earnings, reports Yahoo Finance's Pras Subramanian.
AutoNation and a number of public and independent dealership groups were crippled by a cyberattack on June 19. That knocked out CDK Global’s DMS, or Dealer Management System, which dealers use to fulfill sales and parts orders, among other activities. While CDK Global restored service to its clients after an approximate two-week outage, with dealers using backup methods like pen and paper to track sales in the interim, AutoNation still said it suffered a big profit hit.
“As a result of the incident’s impacts, we currently estimate earnings per share for the quarter ended June 30, 2024, will be negatively impacted by approximately $1.50 per share, without taking into account any potential recoveries related to the incident,” AutoNation said in a filing Monday.
Wall Street leaders calling for unity following Trump assassination attempt
Some of the biggest names on Wall Street urged unity and calm following an assailant's attempt to assassinate Donald Trump, using new memos to employees and conference calls with analysts to condemn the violence and call for civil discourse, reports Yahoo Finance's David Hollerith and Ben Werschkul.
"I truly hope this is a moment that will spur reflection and action that celebrates what unites us as citizens and as a society," Goldman Sachs CEO David Solomon said Monday morning as he led off his firm's quarterly earnings call.
Solomon was joined by CEOs from JPMorgan Chase (JPM), Citigroup (C), BlackRock (BLK) and Bank of America (BAC).
The wave of financial commentary mirrored a business world outpouring over the weekend from many CEOs, including many in the technology sector.
"I pray for President Trump's rapid recovery," wrote Apple (AAPL) CEO Tim Cook in just one example, adding "I strongly condemn this violence."
Trump is already in Milwaukee preparing for this week's Republican National Convention and is expected to make an appearance this evening when proceedings get underway.
Powell won't wait until 2% inflation to start cutting rates
Fed Chair Jerome Powell confirmed Monday that the central bank doesn't have to wait for inflation data to drop to 2% for officials to start cutting rates, nodding to a recent wave of reassuring readings that suggest pricing pressures are headed in the right direction.
At an event hosted by the Economic Club of Washington, D.C., Powell explained that the Fed's policy levers take time to influence the economy.
“If you wait until inflation gets all the way down to 2%, you’ve probably waited too long, because the tightening that you’re doing, or the level of tightness that you have, is still having effects which will probably drive inflation below 2%," he said
What's needed for the Fed to start cutting rates, he said, is greater confidence that inflation is moving sustainably down toward its 2% target, rather than observing an actual 2% rate.
“We’ve been very clear that you wouldn't wait for inflation to get all the way down to 2%," he said.
And Powell said Monday that Fed officials have been receiving more encouraging inflation data, a key criteria to start the rate cutting.
Stocks trending in afternoon trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during afternoon trading on Monday.
Macy's (M): Shares of the beleaguered retailer sank during afternoon trading on Monday after announcing it had ended buyout talks with Arkhouse Management and Brigade Capital Management. In a statement, the retailer said the discussions "failed to lead to an actionable proposal with certainty of financing at a compelling value." The stock fell 13%.
Coinbase (COIN): The major crypto exchange jumped 11% as the broader crypto industry surged on the belief that Donald Trump is closer to winning the November election. The platform's rise coincides with a surge in the value of bitcoin (BTC-USD), which jumped above $63,000, or about 5%, after the assassination attempt on former President Trump. Seen as the crypto-friendly candidate, asset holders cheered on the possibility of a Trump presidency since a less stringent regulatory regime would encourage the values of cryptocurrencies to rise.
Trump Media (DJT): Shares in Trump Media surged by almost 40% in morning trading Monday as investors ramped up bets on Trump winning the US presidential election after the attempt on his life over the weekend.
Goldman Sachs (GS): The financial services giant rose nearly 2% after reporting that second quarter profits soared 150% from a year ago as investment banking surged, the latest signal that Wall Street is warming up after a two-year drought. Net income was $3.04 billion, which beat analyst expectations. Its total revenues of $12.73 billion also rose 17% from a year ago.
Dow rises nearly 300 points in afternoon trading
The Dow Jones Industrial Average (^DJI) was poised to set an all-time closing high on Monday, as the index rose about 0.8% in afternoon trading. The Dow ended last week a few points shy of a record.
Markets were buoyed by the growing sense that former presidential candidate Donald Trump is moving closer to victory in November following an unsuccessful assassination attempt.
The S&P 500 (^GSPC) put on roughly 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) gained 0.6%.
Amazon rivals tout competing sales ahead of Prime Day
Amazon is set to begin its 10th Prime Day on Wednesday, a mega sale lasting for 48 hours, touting millions of deals and deliveries as fast as same day.
Ahead of the event, however, the e-commerce giant's rivals have tried to stem Amazon's momentum, offering deals of their own.
According to a Bank of America global research report on Monday, three competitors have launched major sales initiatives.
Walmart deals, which ended on Thursday, included a half-off discount to Walmart's online membership, Walmart+ (itself a rival version of Amazon Prime), as well as TV, video game, and tech gadget deals, the report said. Target's "Circle Week," which ended over the weekend, offered $50 off Target Circle 360 memberships for same-day delivery.
And lastly, TikTok Shop is hosting a "Deals for You Days," pushing clothing, beauty products, books, and home decor, according to the report.
Even with the competing offers, analysts forecast Amazon to generate $13 billion in gross merchandise value. "We estimate Amazon is still taking share within Online retail, with Prime Day a likely driver of Prime branding and lower churn as customers get access to sizable discounts and rapid delivery," Bank of America analysts said.
DJT stock soars 40% after Donald Trump survives assassination attempt
Trump Media & Technology Group (DJT) stock skyrocketed early Monday after former President Donald Trump survived an assassination attempt at a Pennsylvania rally on Saturday.
Shares of the parent company of Truth Social, Trump's social media platform, surged about 40% during morning trading. Other Trump-related stocks, like conservative-leaning video platform Rumble (RUM), climbed more than 10%.
Prediction bets on Trump winning November's election jumped on several online betting sites following the event, reports Yahoo Finance's Alexandra Canal.
Shares of DJT have been on a bumpy ride in recent months, oscillating between highs and lows.
Last month, the stock popped (then fell) after current commander in chief Joe Biden stumbled in his first presidential debate of 2024 with Trump.
In May, Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign — a verdict that sent shares down 5% the day after the conviction.
Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Monday.
Trump Media (DJT): Shares in Trump Media surged by almost 40% in morning trading Monday as investors ramped up bets on Donald Trump winning the US presidential election after the attempt on his life over the weekend.
Goldman Sachs (GS): The financial services giant rose nearly 2% after reporting that second quarter profits soared 150% from a year ago as investment banking surged, the latest signal that Wall Street is warming up after a two-year drought. Net income was $3.04 billion, which beat analyst expectations. Its total revenues of $12.73 billion also rose 17% from a year ago.
Bitcoin (BTC-USD): The value of the top cryptocurrency rose more than 5% as traders interpreted a higher likelihood of a Trump presidency as a boost to the digital currency market. Seen as the crypto-friendly candidate, asset holders cheered on the possibility of a Trump presidency since a less stringent regulatory regime would encourage the values of cryptocurrencies to rise.
Burberry (BRBY.L): The luxury brand shed more than 17% Monday after announcing that it has replaced its chief executive and suspended its dividend after warning that annual profits will fall short of expectations. The company said Joshua Schulman, the former boss of US brand Michael Kors, will take over as CEO.
Stocks rise in morning trading
US stocks climbed Monday at the opening bell as investors weighed the market impact of an assassination attempt on presidential candidate Donald Trump that overshadowed the return of earnings season.
The Dow Jones Industrial Average (^DJI) rose about 0.7% after the blue-chip gauge ended last week a few points away from a fresh all-time high. The S&P 500 (^GSPC) added 0.4%, while those on the tech-heavy Nasdaq Composite (^IXIC) gained 0.5%.