Stock markets today: S&P 500 trades at record high, Nasdaq jumps with earnings

U.S. stocks rose to hold near record highs on Monday as investors braced for the next batch of major bank earnings to test that rally and the possibility of an economic “soft landing.”

The S&P 500 (^GSPC) advanced roughly 0.6% toward a new record after finishing above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite ( ^IXIC ) jumped nearly 1% as Nvidia ( NVDA ) shares rose 2.2% to new highs. The Dow Jones Industrial Average (^DJI) was near flatline.

Earnings are taking center stage as the first full week of third-quarter results gets under way. As the bull market turns 2 years old, how the season plays out is seen as the key to stocks' rally.

The Dow and S&P 500 closed a winning week at new records after JPMorgan Chase ( JPM ) and Wells Fargo ( WFC ) earnings largely passed Wall Street's test. Investors' focus remains on the big banks, with reports from Goldman Sachs ( GS ), Citi ( C ), and Bank of America ( BAC ) on Tuesday's docket, and Morgan Stanley ( MS ) due Wednesday.

At the same time, there is still uncertainty about whether the Federal Reserve will cut interest rates again. Some analysts argue that a benign jobs report and data showing “sticky” consumer and wholesale inflation are building a case for any rate cut in November. Retail sales data later in the week will feed into the debate over whether the economy is holding up in the face of Fed policy – the soft landing of choice.

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

On the corporate front, Boeing ( BA ) shares fell nearly 3% amid questions about the crisis-hit planemaker's future. The company, which posted a record $5 billion in third-quarter losses, cut 17,000 jobs as a month-long strike hit manufacturing.

Elsewhere, Chinese stocks saw early gains as investors shrugged off Beijing's latest promise of stimulus, but managed to rebound and revive their recent historic rally.

live5 updates

Mon, Oct 14, 2024 at 7:13 am PDT

TSMC Stock Hits Record High, Rejoins $1 Trillion Club

Shares of Nvidia ( NVDA ) supplier TSMC ( TSM ) rose more than 1% in early trading on its US-listed equity, with the stock marking a new record intraday price of $193.96 per share and rejoining the $1 trillion club.

TSMC shares hit an all-time high above $193 each in July after the Taiwanese contract chipmaker reported second-quarter earnings. The surge briefly put its market capitalization above $1 trillion before shares turned into gains. The stock came back down to earth as investors expressed concern over its high valuation multiple, geopolitical risk and AI demand.

TSMC last week reported third-quarter revenue of 759.7 billion New Taiwan dollars ($23.6 billion). That beat the NT$748.3 ($23.3 billion) expected, according to Bloomberg data, as well as the company's prior guidance of $22.4 billion to $23.2 billion.

Some 23 Wall Street analysts covering the stock tracked by Bloomberg recommend buying TSMC shares, while only one analyst has a hold rating. Analysts see each share rising to $216.59 over the next 12 months, according to Bloomberg data.
Mon, Oct 14, 2024 at 7:00 am PDT

Boeing slips more than 2% as planemaker plans to cut 10% of workforce, strike enters 5th week

Boeing ( BA ) shares slipped more than 2% as investors questioned the future of the crisis-hit planemaker amid job cuts and a strike that is now in its fifth week.

On Friday, the company said it would cut 17,000 jobs, or about 10% of its workforce.

“Beyond navigating our current environment, we need to make tough decisions to reposition our company and make structural changes to ensure we can remain competitive and deliver for our customers over the long term,” CEO Kelly Ortberg told Boeing's posted employees. said in a message. Friday website.

An ongoing strike by Boeing's largest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly for the company on several fronts.

S&P Global estimated the cost of the strike, which began on September 1, at about $1 billion per month. Last week, talks between Boeing and IAM broke down, with the company withdrawing its contract offer.
Mon, Oct 14, 2024 at 6:46 am PDT

Nvidia climbed 2%, hovering near a record

Nvidia ( NVDA ) stock jumped more than 2% at the open Monday, surpassing its June record high of $135.58.

The stock was just a few dollars away from its all-time intraday high of $140.76.
Mon, Oct 14, 2024 at 6:30 am PDT

S&P 500 eyes fresh record, Dow slips as focus shifts to earnings

Major averages opened mixed on Monday as investors turned their attention to upcoming big bank earnings and other quarterly results from big companies.

The S&P 500 (^GSPC) rose roughly 0.3%, eyeing new record highs. On Friday, the broad index ended above 5,800 for the first time.

The tech-heavy Nasdaq Composite (^IXIC) rose 0.5% shortly after the bell on Monday, while the Dow Jones Industrial Average (^DJI) slipped 0.2% from Friday's record close.

Earnings season is in full swing this week with Citi ( C ), United Airlines ( UAL ), AI chip equipment maker ASML ( ASML ), Netflix ( NFLX ), and American Express ( AXP ) expected to report.

Oil futures fell more than 2% after OPEC cut its demand forecast for 2024 and 2025. Traders also reacted to the lack of details from China's finance minister over the weekend on any major new stimulus spending.
Mon, Oct 14, 2024 at 6:16 am PDT

Nvidia stock is eyeing a record high and ahead of Apple as the most valuable company

Nvidia (NVDA) stock rose 1% to $136.22 in premarket trading, on track to surpass the chipmaking giant's previous record closing price of $135.58 posted in June.

The AI chipmaker's shares made substantial gains in October after a massive, $6.6 billion funding round for ChatGPT-maker OpenAI, much of which will be plowed back into Nvidia. AI leaders, including Nvidia CEO Jensen Huang, cited strong demand for the company's latest Blackwell chips. Its stock is up 8% in the past week.

Nvidia's gains put it on track to once again claim the rank of the world's No. 1 most valuable company in terms of market capitalization. It currently holds the No. 2 position behind Apple (AAPL). The chipmaker's market cap stood at $3.3 trillion on Monday, compared to Apple's at $3.46 trillion. Apple, Microsoft ( MSFT ), and Nvidia have traded places as the top three companies over the past year.

Nvidia is set to report earnings on November 19. Wall Street analysts expect it to report revenue of $33 billion, up 82% from a year earlier, according to Bloomberg consensus estimates. About 90% of those who cover the stock and are tracked by Bloomberg recommend buying Nvidia shares.