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 0.5%, and the S&P 500 Index (^GSPC) rose 0.4%. The Dow Jones Industrial Average (^DJI) also rose 250 points, or about 0.7%.
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. The report is the highlight of a very busy week of earnings reports, with 169 S&P 500 companies expected to announce updates.
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
With the U.S. election just days away, Trump Media and Technology Group stock (DJT) is on the decline on Monday following Donald Trump’s heavily criticized rally at Manhattan’s Madison Square Garden. It extended its rise for the first time in five weeks, rising as much as 20%.
LIVE 13 updates Tesla short sellers lose more than $4 billion as the EV maker’s stock price rises after earnings Yahoo Finance’s Laura Bratton reports:
The post-earnings rally in Tesla (TSLA) has cost short sellers billions of dollars in losses.
Tesla short sellers lost $4.2 billion in the two days following Tesla’s third-quarter results last Wednesday, according to data from S3 Partners.
Tesla reported better-than-expected third-quarter profits and improved margins after the bell Oct. 23. These strong results led Tesla stock to record its biggest single-day rise in 10 years. The stock rose 22% last Thursday, its best day since 2013, and rose another 3.3% on Friday.
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Jamie Dimon slams US regulators: ‘It’s time to fight back’
Yahoo Finance’s David Hollerith reports:
JPMorgan Chase & Co. (JPM) CEO Jamie Dimon didn’t mention U.S. election candidates in public Monday, but he did have something to say about current regulators in Washington, D.C. There were a lot of them.
The boss of America’s biggest bosses calls a slew of regulatory proposals from regulators an “onslaught” and criticizes Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, saying industry rejects new US regulations He made it clear that he was prepared to do so. court.
“It’s time to fight back,” Dimon said while speaking at the American Bankers Association convention in New York City. “I went through it with this shit.”
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Apple Intelligence review: Apple’s first AI feature set won’t set the world on fire, but it’s a start
Yahoo Finance’s Dan Howley reports:
Apple (AAPL) is finally releasing the first set of Apple Intelligence features for iPhone, iPad, and Mac. It’s a big moment for the world’s most valuable company by market capitalization, and many Wall Street analysts are counting on the platform to re-accelerate iPhone sales.
This is a big bet for Apple as well. The company is pushing this software to some of its most important products. And if it’s off the mark from the start, it could hurt users’ perceptions of Apple Intelligence going forward.
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Sam Altman-backed nuclear power stocks soar nearly 30%, extending massive rally
Shares of OKLO, the nuclear power company whose chairman and investor is Sam Altman, rose nearly 30% to $24.44 on Monday, nearly triple the $8.84 price it sold last month.
The stock and its peers are soaring as investors focus on nuclear power as the next big AI trade. Because nuclear energy does not directly produce greenhouse gases, major tech companies have recently turned to nuclear power to balance growing electricity demands with climate change goals. Amazon (AMZN), Alphabet (GOOGL, GOOG), and Oracle (ORCL) all recently announced investments in so-called small modular reactors (SMRs). SMRs are designed to produce energy cheaper, faster and more environmentally friendly than traditional nuclear facilities.
Many companies are developing SMRs, but none have so far been deployed in the United States.
Mr. Altman owns 2.6% of Oklo’s stock and serves as chairman of the company’s board of directors. Peter Thiel and Cathie Wood are also investors.
Read more about Oklo’s stock price rise here.
Utilities are outperforming, but energy stocks are lagging.
Utilities stocks outperformed on Monday, with the S&P 500 Utilities Sector ETF (XLU) up more than 1%. Year-to-date, utilities have led the market’s gains, rising 28% compared to the broader index’s 22% rise.
Financials (XLF) was the second-best performing sector as of midday trading Monday, rising nearly 1%. Meanwhile, energy stocks (XLE) lagged as oil prices fell more than 5%.
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 in 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.
The social media company’s stock rose to its highest level 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 might attack Iran’s oil infrastructure. The White House recommended against targeting the country’s oil and nuclear facilities.
