Nasdaq jumps, S&P 500 trades at record high with earnings on deck

US stocks traded mixed on Monday but held near record highs as investors prepared for the next batch of big bank earnings to test that rally and the chances of an economic “soft landing.”

The S&P 500 (^GSPC) moved up roughly 0.6% to head for a fresh record after ending above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite (^IXIC) jumped around 1% as Nvidia (NVDA) shares rose toward new highs, up 2.2%. The Dow Jones Industrial Average (^DJI) slipped 0.2%.

Earnings are taking center stage as the first full week of third quarter results gets underway. How the season plays out is seen as key to the rally in stocks as the bull market turns 2 years old.

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. Investor focus is staying on 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’s still uncertainty about whether the Federal Reserve will cut interest rates again. A benign jobs report and data showing “sticky” consumer and wholesale inflation are building a case for no rate cut in November, some analysts argue. Retail sales data later in the week will feed into the debate as to whether the economy has held up in the face of Fed policy — the preferred soft landing.

On the corporate front, Boeing (BA) shares slipped almost 3% amid questions about the crisis-hit plane maker’s future. The company, which faces a record $5 billion in third quarter losses, has slashed 17,000 jobs as a month-long strike hits manufacturing.

Elsewhere, Chinese stocks initially seesawed as investors picked over Beijing’s latest promise of stimulus, but managed to rise and resuscitate their recent historic rally.

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Mon, October 14, 2024 at 7:13 AM MST

TSMC stock hits record high, rejoins $1 trillion club

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

TSMC shares previously hit an all-time high above $193 in July after the company reported second-quarter earnings, briefly putting its market capitalization above $1 trillion before paring gains. The stock fell back to earth as investors weighed its high valuation multiples, geopolitical risks and concerns over AI demand.

TSMC last week posted third-quarter revenues of 759.7 billion New Taiwan dollars ($23.6 billion), beating the NT$748.3 ($23.3 billion) expected Bloomberg consensus estimates 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 shares rising to $216.59 over the next 12 months, according to Bloomberg data.
Mon, October 14, 2024 at 7:00 AM MST

Boeing slips more than 2% as plane maker plans cuts 10% of workforce, strike enters 5th week,

Boeing (BA) shares slipped more than 2% as investors question the crisis-hit plane maker’s future amid job cuts and a strike that is now in its fifth week.

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

“Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term,” CEO Kelly Ortberg said in a message to employees posted on Boeing’s website on Friday.

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

S&P Global put the cost estimate of the strike that started on Sept. 1 at roughly $1 billion per month. Last week, talks between Boeing and IAM broke down, with the company withdrawing its contract proposal.
Mon, October 14, 2024 at 6:46 AM MST

Nvidia climbs 2%, hovers near record

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

The stock was a couple of dollars away from its all-time intraday high just past $140.76.
Mon, October 14, 2024 at 6:30 AM MST

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

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

The S&P 500 (^GSPC) moved up roughly 0.3% to eye a new record high. On Friday, the broader index ended above 5,800 for the first time.

The tech-heavy Nasdaq Composite (^IXIC) was up 0.5% soon after the bell on Monday, while the Dow Jones Industrial Average (^DJI) slipped 0.2% from its Friday record close.

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

Oil futures dropped more than 2% as OPEC cut its demand forecast for 2024 and 2025. Traders also reacted to a lack of detail from China’s Finance Minister over the weekend on any large new stimulus spending.
Mon, October 14, 2024 at 6:16 AM MST

Nvidia stock eyes record high and top spot as most valuable company ahead of Apple

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

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

Nvidia’s gains put it on track to once again claim the rank of No. 1 most valuable company in the world, 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 Monday, while Apple’s was $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 Nov. 19. Wall Street analysts expect it to report revenue of $33 billion, up 82% from the prior year, according to Bloomberg consensus estimates. Some 90% of those covering the stock and tracked by Bloomberg recommend buying Nvidia shares.