Market Watch: Stocks Set to Soar Ahead of Election Day and Fed Decision
As the world gears up for a pivotal week, stock futures are trending higher, driven by optimism and a slew of key events. The presidential election and a Federal Reserve interest-rate decision are just around the corner, and investors are bracing for impact.
Earnings Season Kicks Off with a Bang
Berkshire Hathaway, led by the iconic Warren Buffett, reported a decline in earnings, citing reduced holdings in Apple and Bank of America. Despite this, the conglomerate boasted a record $320.3 billion in cash holdings, up from $271.5 billion in the previous quarter. Berkshire Hathaway shares dipped slightly in premarket trading, with Apple and Bank of America following suit.
Dow Jones Industrial Average Shakeup
In a significant move, Nvidia will replace Intel in the Dow Jones Industrial Average, while Sherwin-Williams will take Dow’s place. This change is set to take effect before trading begins on Friday, November 8. Nvidia’s share price has surged on demand for artificial intelligence, while Intel’s shares have plummeted over 50% this year. Nvidia and Sherwin-Williams shares rallied in premarket trading, while Intel and Dow shares slipped.
Palantir Technologies: A Mixed Bag
Ahead of its third-quarter earnings report, Palantir Technologies shares declined over 1%. Analysts predict a 26% revenue jump to $704.9 million, with earnings per share expected to rise to 5 cents. Despite this, only two of the 12 analysts covering Palantir foresee further share price growth, with the average price target coming in 34% lower than its Friday closing price.
Boeing on the Rise
Shares of Boeing edged higher ahead of a crucial vote by the International Association of Machinists, which could bring an end to the nearly two-month workers strike. The new offer from Boeing includes 38% pay increases and a ratification bonus, a significant improvement over the previous offer.
Oil Prices Surge
Oil prices jumped over 2% after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, announced an extension of output cuts through December. Treasury yields were slightly lower, with the yield on the benchmark 10-year Treasury hovering around 4.28%. As investors navigate this complex landscape, one thing is clear: it’s going to be a wild ride.
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