Stock markets today: Dow rises 400 points, nears new high S&P 500 notches record

U.S. stocks traded mixed on Monday but held near record highs 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) was up roughly 0.2% after finishing above 5,800 for the first time, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.5%. The Dow Jones Industrial Average (^DJI) fell 0.1%.

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

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.

On the corporate front, Boeing ( BA ) shares have been mired in questions about the future of the crisis-hit plane maker. The company, which posted a record $5 billion in third-quarter losses, cut 17,000 jobs as a month-long strike hit manufacturing.

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Mon, Oct 14, 2024 at 6:30 am PDT

Stocks opened mixed as focus shifted to earnings

Major averages opened mixed on Monday as investors focused more on bank earnings and other quarterly results from major companies.

The S&P 500 (^GSPC) rose roughly 0.3%, hovering near its record high. The broad index ended above 5,800 for the first time on Friday

The tech-heavy Nasdaq Composite (^IXIC) rose 0.5% on Monday while the Dow Jones Industrial Average (^DJI) fell 0.2%.

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 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 stock rose 1% pre-market to $136.22, putting the company on track to surpass its previous record closing price of $135.58 in June.

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

Nvidia's gains put the company back on track to earn a spot as the world's No. 1 most valuable company by market capitalization. Nvidia is the world's No. 2 most valuable company, after Apple. The chipmaker's market cap stood at $3.3 trillion on Monday, compared to Apple's at $3.46 trillion. Apple, Microsoft, and Nvidia traded places as the top three companies over the past year.

Nvidia is set to report earnings on November 19. Wall Street analysts expect the company to report revenue of $33 billion, up 82% from a year earlier, according to a Bloomberg consensus estimate. About 90% of Wall Street analysts covering the stock tracked by Bloomberg recommend buying Nvidia shares.