Market Momentum Slows Ahead of Earnings Season
The S&P 500 dropped almost 0.3% on Monday, retreating from its fresh all-time closing high. The Dow Jones Industrial Average edged lower by nearly 0.5%, while the tech-heavy Nasdaq Composite slipped 0.2%. Investors are bracing for a packed week of top-tier earnings that could either drive or drag on the record-setting rally.
Earnings Season Heats Up
Over 100 S&P 500 companies are lined up to report their quarterly results this week. So far, 80% of third-quarter updates have topped expectations. Tesla’s report on Wednesday is highly anticipated, especially after its robotaxi unveiling fell short of expectations. Other big hitters on the earnings docket include General Motors, Coca-Cola, American Airlines, and UPS.
Boeing Faces Double-Whammy
Boeing faces a crucial test on Wednesday when it releases its earnings and workers vote on a tentative labor deal. The contract would raise pay 35% over four years and increase Boeing’s 401(k) contributions. However, it would not reinstate pension plans, a major union demand. Analysts estimate the contract could lead to an additional $1 billion in wage-related expenses for the company.
Nvidia Shines Bright
Nvidia’s stock climbed more than 1.5% on Monday, helping mitigate a bigger decline in the Nasdaq Composite. Shares of the AI chip heavyweight rose to hover above $140 each, briefly touching an intraday high of $141. Nvidia is backed to win the race to a $4 trillion market cap, according to some analysts.
Economic Data and Earnings
The Leading Economic Index for September is set to be released, providing insights into the state of the economy. Earnings reports from SAP SE, Nucor Corporation, HBT Financial, Zions Bancorporation, and Nucor Corporation are also on the docket.
Other Market Movers
- Apple’s stock was on pace to eke out a new high on Monday after closing at a record on Friday.
- Disney plans to announce its next CEO in early 2026, with current board member and former Morgan Stanley CEO James Gorman serving as the board’s new chairman.
- Dallas Fed president Lorie Logan reiterated that she sees policymakers lowering interest rates “gradually” to manage risks and achieve goals.
Treasury Yields and Oil Prices
The 10-year Treasury yield climbed over 6 basis points to 4.136%, the highest level since the end of July. Oil prices rose as much as 2% alongside gains for Chinese stocks, with global benchmark Brent futures trading near $74 a barrel.
Leave a Reply