Stock markets today: Tech, Nvidia lead stocks higher as oil prices retreat, China rally stalls

U.S. stocks moved higher on Tuesday as investors welcomed a rebound in technology and a pullback in higher oil prices, while focusing on interest rates and the state of the U.S. economy.

The Nasdaq Composite (^IXIC) rose about 1.2% as tech megacaps recouped some of the previous session's losses. The benchmark S&P 500 (^GSPC) rose about 0.7%, while the Dow Jones Industrial Average (^DJI) gained about 0.2%.

With oil prices retreating as tensions in the Middle East cooled somewhat, stocks continued to rally in recent months as headwinds eased on Monday.

Oil also came under pressure after China failed to pull out another major stimulus package on Tuesday, a surprise for investors hoping to add more fuel to the unprecedented rally. Hong Kong stocks (^HSI) fell more than 9%, as a roaring stimulus-fueled rally in Chinese stocks fizzled.

Some of the “Magnificent Seven” stocks recovered lost ground amid negative headlines, with Amazon (AMZN), Apple (AAPL), and Alphabet (GOOG, GOOGL) all higher. Meanwhile, Nvidia ( NVDA ) built on a closing gain, rising another 4% on Tuesday, as the chip heavyweight's partner Hon Hye pointed to “crazy” AI demand.

Investors also turned their attention to Fed policy with markets still reeling from the prospect of a jumbo interest rate cut.

New York Fed President John Williams told the Financial Times on Tuesday that Federal Reserve policy is “well positioned” to make a “soft landing” for the economy. Meanwhile, Fed Governor Adriana Kugler said data rate decisions will continue.

Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

The comments sharpened investors' focus on the CPI inflation report due on Thursday, which will provide more clues on the way forward for interest rates.

In corporates, PepsiCo ( PEP ) got the ball rolling in earnings season, posting a surprise drop in quarterly revenue and cutting sales growth forecasts for 2024. Shares of the snack and drinks giant edged higher in midday trading.

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Tuesday, October 8, 2024 at 12:29 PM PDT

Nvidia stock is off its recent lows

Nvidia stock is heading back to meme numbers.

The stock rose more than 3% on Tuesday — marking the fifth-straight day of gains — as shares quickly reached an all-time closing high of $135.58. From its recent low on August 7, the stock is now up more than 34%.

That includes a significant drawdown after Wall Street deemed the AI juggernaut's recent earnings release good but not good enough. Investors were concerned about signs of slowing revenue growth in the coming quarters and the potential for an overall cooling in the flow of AI spending.

But in the past month, those concerns seem to have fallen by the wayside. The stock rose more than 5% in a single trading session after CEO Jensen Huang spoke in a CNBC interview about “insane” demand for its next-generation Blackwell chips. On Tuesday, the stock rose as Nvidia further highlighted the use cases of its AI software and services at a DC AI Summit.

The stock pop Tuesday was the latest sign that despite all the turmoil around stocks in August, investors are clearly still bullish on the AI theme and searching for reasons to buy stocks.
Tuesday, October 8, 2024 at 11:50 am PDT

DJT stock extends gains

Trump Media and Technology Group stock ( DJT ) rallied another 13% on Tuesday after closing up more than 10% on Monday.

The moves come as investors assess current vice president and Democratic nominee Kamala Harris' recent media appearances, along with a surprise cameo by Elon Musk at a Donald Trump rally in Butler, Pa. over the weekend. It's the same spot where the former president survived an assassination attempt in July.

Tech billionaire Musk, who serves as CEO of Tesla ( TSLA ) and SpaceX and also owns social media platform X (formerly Twitter), has been outspoken about backing Trump ahead of next month's election.

The former president remains in a stalemate against Harris, who has just begun a flurry of media appearances in an effort to cement recent momentum in the polls.

Harris appeared on an episode of “Call Her Daddy,” a popular podcast geared toward Generation Z, along with a sit-down interview for CBS's “60 Minutes.”

In a one-on-one interview with CBS correspondent Bill Whittaker, Harris defended his proposals on the economy and immigration but was pressed on how he would finance some of those efforts.

Trump backed out of an interview with the program last week after previously agreeing to sit out, according to the network.

Read more here.
Tue, Oct 8, 2024 at 10:45 am PDT

Sector Check: Tech Leads, Energy Lags

Technology ( XLK ) and Consumer Discretionary ( XLY ) led Tuesday's sector action, up about 1.4% and 0.8%, respectively.

Tech megacaps led by Nvidia ( NVDA ) pushed markets higher to recoup some of the previous session's losses, with the Nasdaq Composite ( ^IXIC ) up more than 1%. Nvidia rose as much as 4%, its biggest intraday move since July, on more positive sentiment surrounding Blackwell chips.

Energy was the day's biggest loser after crude oil ( CL=F ) fell nearly 4% to trade above $74 a barrel. The drop comes after oil's recent rally due to the ongoing conflict in the Middle East, while China disappointed with more stimulus measures. Brent (BZ=F), the international benchmark price, fell 4% to north of $77.50.

(Courtesy: Yahoo Finance)
Tuesday, October 8, 2024 at 10:00 AM PDT

Why This Earnings Season Will Drive 'Mute Market Reaction'

The third quarter earnings reporting period will begin in earnest when some of the nation's largest banks report quarterly results on Friday.

Wall Street projects earnings will rise 4.7%, marking the fifth straight quarter of growth from the same period a year ago. But it will be the slowest year since the fourth quarter of 2023.

With stocks charged higher than usual during the reporting period, Deutsche Bank chief equity strategist Binky Chadha doesn't expect the S&P 500 (^GSPC) to post a typical 2% rise in the first four weeks of earnings reports.

“Earnings seasons are generally positive for equities, but strong rallies and above-average positions argue for a muted market reaction,” Chadha wrote in a note to clients.

Read more here.
Tuesday, October 8, 2024 at 9:10 am PDT

China's stock rally loses steam as stimulus hopes fade

A recent rally in Chinese stocks hit the pause button on Tuesday after Beijing failed to pull out another major stimulus package, a surprise for investors hoping to add more fuel to the unprecedented rally.

Hong Kong's benchmark Hang Seng Index (^HSI), which is loaded by major Chinese stocks, fell nearly 9% on Tuesday, its worst day since October 2008, after rising nearly 20% over the past month. Aggressive fiscal stimulus since the start of the pandemic.

China's benchmark CSI 300 (000300.SS) also experienced a volatile day as expectations of a big stimulus announcement led to an initial 10% rise after markets reopened from the country's week-long holiday. The index later gave up those gains, posting a more modest 6% gain on the day.

The stimulus, a response to China's need to overhaul its struggling economy, was first announced on September 24. Since then, a wave of inflows has dramatically boosted Chinese equities as investors bet on Beijing's comeback, particularly in real estate and consumer staples. .

At a news conference Tuesday hosted by China's top economic planner, the National Development and Reform Commission (NDRC), Beijing said it was committed to implementing more support to reach its economic goals, which include “an annual growth target of around 5%.”

On Tuesday, Shanghai Composite (000888.SS) still gained about 5%. The index rose by double digits, jumping more than 20% from September's low. It is up nearly 30% in the last month.

Similarly, shares of Chinese e-commerce giants Alibaba ( BABA ) and PDD Holdings ( PDD ) rose more than 35% and 55%, respectively, despite single-digit losses on Tuesday.

Read more about what this could mean for investors here.

(Courtesy: Yahoo Finance)
Tuesday, October 8, 2024 at 8:25 AM PDT

Oil tanks 4% as Israel-Iran tensions ease, China disappoints stimulus

Oil sank on Tuesday as a recent rally stemming from the Middle East conflict took a break and China disappointed investors with its stimulus.

West Texas Intermediate (CL=F) tanked more than 4.5% while Brent (BZ=F), the international benchmark price, fell more than 4.5%.

The reversal came after crude futures surged nearly 12% over the past five sessions on speculation that retaliatory moves from Tel Aviv against Tehran could target Iran's oil infrastructure in the ongoing Middle East conflict.

“The delayed response to the counterattack by Israel may mean further negotiations may be first,” Dennis Kiesler, senior vice president of trading at BOK Financial Securities, said in a note on Tuesday.

“Oil futures have moved into an 'overbought' state and are seeing a corrective phase without an underlying escalation of attack,” he added.

Oil also came under pressure, with a Chinese economic planner telling reporters that Beijing was “fully confident” the country would meet its 2024 targets but did not point to any major or new moves, pointing to stagnant demand from the world's biggest oil importer.
Tuesday, October 8, 2024 at 7:35 AM PDT

Apple iPhone 16 spending 'more positive' than expected but concerns remain: KeyBanc

Apple's iPhone 16 ( AAPL ) may have more speed out of the gate than its predecessor, according to KeyBanc analysts. But that's not enough to ease concerns about sales overall.

KeyBanc analysts said in a note on Tuesday that iPhone 16 spending in the first 10 days after its launch in September was 12% higher than the same period after the iPhone 15's rollout.

In its findings, which KeyBanc based on data from nearly 2 million KeyBank credit and debit card customers, Apple sees transactions over $400.

KeyBanc said the data “appears to be more positive than we expected.” But analysts said demand for the iPhone 16 quickly faded: “We saw initial strong demand for the iPhone 16, but the momentum has leveled off.”

“Data in the September quarter should calm concerns, though do little to change our more cautious view of the 'super cycle', as the rate of upgrades is likely to continue to decline.”

So far, Wall Street has viewed the iPhone 16 launch as somewhat lackluster. Analysts have cited shorter shipping times for the iPhone 16 compared to past iPhones. In other words, if people wait less to get their new iPhones, demand will definitely weaken.
Tuesday, October 8, 2024 at 6:31 AM PDT

Stock opens higher, oil retreats

US stocks opened higher on Tuesday after all three major indexes closed Monday's session in the red.

The benchmark S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) each rose about 0.5%, while the Dow Jones Industrial Average (^DJI) gained about 0.3%.

Oil prices rose amid Middle East tensions, retreating early on Tuesday. Crude oil (CL=F) fell nearly 3% to trade below $75 a barrel.
Tue, Oct 8, 2024 at 5:50 am PDT

PepsiCo cuts 2024 sales outlook as snack business lags

PepsiCo ( PEP ) cut its sales outlook for the year, forecasting organic revenue growth in the low single digits, below the 4% growth previously expected. As Yahoo Finance's Brooke DePalma reports, PepsiCo's third-quarter revenue fell short of Wall Street estimates, coming in at $23.3 billion, versus the $23.8 billion expected.

CEO Ramon LaGuerta said in the release that Pepsi's performance was impacted by “category performance trends in North America”, “the impact of the Quaker Foods withdrawal in North America” and business disruptions from “escalating geopolitical tensions in some international markets”. In a phone interview with Yahoo Finance, Laguerta said consumers are “very challenged” and that they are making “a lot of trade-offs” when it comes to food. These trade-offs are weighing most acutely on the snacks business, Laguerta explained.

PepsiCo stock fell about 1% in premarket trading. Read the full story here.