Dow falls 300 points, Nvidia and Apple near new records

Stocks fell on Monday as the 10-year Treasury yield rose to its highest level since July and investors braced for a week packed with super-class gains that could fuel or drag the record rally.

The S&P 500 (^GSPC) fell almost 0.2%, coming close to its all-time high set at Friday’s close. The Dow Jones Industrial Average (^DJI) fell more than 300 points, ending its winning streak after three days, while the tech-heavy Nasdaq Composite Index (^IXIC) closed about 0.2% higher.

Interest rate-sensitive stocks such as real estate fell during trading as the 10-year Treasury note rose 10 basis points to 4.18%.

Meanwhile, AI chip giant Nvidia (NVDA) rose more than 4% to a new record, while iPhone maker Apple (AAPL) came close to a record.

Streaming giant Netflix (NFLX) also rose to an all-time high during Monday trading.

Yahoo Finance’s Ben Werschkul reports:

A busy weekend of campaigning highlighted two key trends in the 2024 campaign finance race. It’s Kamala’s reliance on Harris’ extraordinary fundraising ability and Donald Trump’s array of billionaire allies.

Vice President Harris’ campaign outscored Trump by more than 3-1 in September, capping a less than three-month sprint as a candidate that raised an unprecedented $1 billion.

President Trump’s own formal operations have been delayed. But the former president and his allies are trying to make up the difference with massive billionaire donations to outside groups supporting his candidacy.

Click here for details.

Dan Howley reports:

The smartphone industry is counting on AI to re-accelerate device sales after years of slow growth. But to do that, they need to give consumers a reason to buy new phones more often.

Qualcomm (QCOM) is aiming its latest smartphone chip to do just that, adding a slew of new onboard AI features to do things like virtually adjust lighting for video calls in real-time. A device that enables you to recognize real-world objects without accessing the web.

Qualcomm stock fell about 2% on Monday.

Click here for details.

Early trends have emerged throughout the first half of the quarterly earnings report.

For the first time since 2020, companies that beat Wall Street’s expectations for both revenue and revenue have seen their stock prices move more than those that missed both metrics.

According to Bank of America research, across the earnings of 71 S&P 500 companies, companies that beat expectations on both measures had an average overnight stock price increase of 3.15%, the highest average since 2000. It exceeds 1.49%. Meanwhile, the stock price of companies that missed revenue and profit estimates fell 2.61% the day after, below the average of 2.44% since 2000.

“As large-cap tech companies approach their earnings season, we see the potential for significant earnings reactions, reinforcing the case for holding tech stocks through the end of October,” the Bank of America Securities strategist team said in a Monday morning note. Ta.

Mike Wilson, chief U.S. equity strategist at Morgan Stanley, also weighed in on the topic in a note to clients Sunday night.

“Dispersion among stocks and even within sectors is likely to remain high, as the market appears to have a clear indication of ups and downs in earnings,” Wilson said.

Pras Subramanian reports:

Investors are hoping for even brighter results when General Motors reports Tuesday, after the company raised its earnings forecast for the second time earlier this year on the back of strong U.S. sales. are. However, the focus will likely be on questions surrounding GM’s EV business and inventory management.

GM is expected to report third-quarter sales of $44.69 billion, down sequentially from about $48 billion in the previous quarter, but down from second-quarter sales, according to Bloomberg consensus. This is within the expected range given historically strong sales. GM’s third-quarter earnings are expected to be higher than a year ago.

Click here for details.

Netflix (NFLX) stock hit an all-time high on Monday, extending gains from last week when the streaming giant reported better-than-expected quarterly results.

The stock briefly touched a new high of $773 during trading, before falling lower.

The rally in gold and silver shows no signs of slowing down as investors continue to pour into precious metals.

Gold futures (CG=F) rose 0.8% on Monday, hitting an intraday high of over $2,750 an ounce. Silver futures (SI=F) rose more than 3% and at one point topped $34 an ounce, hitting a 12-year high.

Both metals are outperforming the broader market. Since the beginning of 2024, gold bullion is up about 26% and silver is up about 35%. In comparison, the S&P 500 index (^GSPC) rose 19%.

Central banks have been buying up the yellow metal, and more investors are turning to physically-backed gold ETFs in hopes of lower interest rates.

Yahoo Finance’s Alexandra Canal reports:

Disney (DIS) plans to announce its next CEO in early 2026, marking the first time the company has publicly announced a timeline for naming a successor to current CEO Bob Iger.

The media giant made the announcement on Monday, at the same time that current director and former Morgan Stanley (MS) CEO James Gorman will become the new chairman of the board, effective January 2, 2025. revealed that. He will step down as Morgan’s executive chairman. Stanley on December 31st.

“A key priority before us is the appointment of a new CEO, which we expect to announce in early 2026,” Gorman said in a press release. “The timing reflects the progress of the succession planning committee and board of directors, which will allow us to do so going forward.” There is plenty of time to succeed. ”

Click here for details.

After closing at a record high on Friday, Apple (AAPL) stock was on track to hit a new high on Monday.

The iPhone maker’s stock rose slightly, hovering around $235.80 per share.

On Friday, the stock closed at a record $235. Apple is up more than 22% since the beginning of the year.

Yahoo Finance’s Jennifer Schonberger reports:

Dallas Fed President Laurie Logan reiterated Monday that policymakers will lower interest rates “gradually.” He cited a growing risk of a deterioration in the job market and a continued risk of inflation heating up again.

“If the economy develops as currently expected, a strategy of gradually lowering policy rates toward more normal or neutral levels will help manage risk,” Logan said in the Securities Industry and Financial Markets Association’s annual address. We will achieve our goals.” Meeting in New York.

Mr Logan said that while the economy was “strong and stable”, “significant uncertainties” remained in the outlook.

Click here for details.

Nvidia (NVDA) stock rose more than 1.5% early Monday, helping to cushion a sharp decline in the Nasdaq Composite Index (^IXIC).

Shares of leading AI chip companies rose above $140 each, hitting an intraday high of $141.

The Nasdaq was trading near a flat line while Nvidia rose.

Major averages opened slightly lower on Monday as investors awaited new earnings results this week.

The S&P 500 (^GSPC) was down about 0.2%, hitting a new closing high, and the Dow Jones Industrial Average (^DJI) was down 0.1%. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell 0.2%.

New quarterly earnings are expected to be announced this week, including one from Tesla (TSLA) on Wednesday. This week’s earnings reports include a number of well-known companies, including General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS).

Boeing Co. (BA) shares rose as much as 4.5% in premarket Monday on news that the aircraft maker had reached a tentative labor agreement with workers who have been on strike for more than a month.

The deal increases wages by 35% over four years and increases Boeing’s 401(k) contributions, but does not include reinstatement of the pension plan, a key demand from unions. Analysts estimate the deal could add an additional $1 billion to the company’s wage-related costs.

The union is scheduled to vote on the contract on Wednesday, the same day Boeing releases its quarterly results. Analysts expect the aircraft maker to report a loss of $1.50 per share, according to Bloomberg consensus estimates.

Boeing has been struggling since aircraft parts tore apart one of its 737 Max 9 planes during a flight in January. The stock price has fallen more than 40% this year.

Of the Wall Street analysts who cover the stock tracked by Bloomberg, about 19 recommend the stock to buy, 11 have a hold rating and three have recommended a sell. Analysts, on average, expect Boeing stock to rise to about $192 a share over the next 12 months, implying an increase of more than 20%.