Stock market today: Nasdaq leads stocks lower in wait for earnings to rush in, 10-yr yield climbs to July high
10/21/2024 20:40
Investors are bracing for a packed week of top-tier earnings that could drive or drag on a record-setting rally.
Tech led US stocks slightly lower 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 roughly 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 0.1% lower, while the tech-heavy Nasdaq Composite (IXIC) shed 0.1%.
The 10-year treasury yield (^TNX) climbed to 4.136%, the highest level since the end of July.
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, oil prices recovered, rising nearly 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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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.
Boeing stock rallies on tentative labor deal
Boeing stock jumped as much as 4.5% Monday 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 Wednesday, the same day Boeing reports its quarterly earnings. Analysts expect the company to report an earnings loss per share of $1.50, according to Bloomberg consensus estimates.
Boeing this year 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 the stock, while 11 have a Hold rating and three say to sell shares. On average, analysts see Boeing shares rising to about $192 over the next 12 months, implying a more than 20% gain.
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