Wall Street Opens Higher Amid Key Economic Events and Big Tech Earnings
Wall Street kicked off the week with a positive note, with traders displaying optimism ahead of crucial earnings reports from major tech giants and the Federal Reserve’s highly anticipated interest rate decision. The S&P 500 rose by 0.4% by midday trading in New York, while the tech-heavy Nasdaq 100 climbed 0.8%. The blue-chip Dow Jones Industrial Average inched 0.1% up, and small caps, as represented by the Russell 2000, slipped 0.8%.
Key Takeaways:
- Big Tech Earnings: Four of the six largest U.S. corporations – Microsoft Corp., Apple Inc., Meta Platforms Inc., and Amazon Inc. – are set to report their latest quarterly earnings between Tuesday and Thursday. Investor focus will be on revenue growth, profit margins, and guidance for the remainder of the year.
- Federal Reserve Meeting: The Federal Reserve will hold its two-day Federal Open Market Committee (FOMC) meeting, concluding on Wednesday with the rate statement and Fed Chair Jerome Powell’s press conference. The market is widely expecting the Fed to keep interest rates steady, but traders will be closely watching for any hints of a potential rate cut in September.
- Crucial Economic Data: This week will also see the release of key economic statistics, including the June Job Openings and Labor Turnover Survey (JOLTs) on Tuesday, July private payroll numbers from Automatic Data Processing Inc. on Wednesday, and the highly anticipated official employment report for July on Friday. These data points will shed light on the health of the labor market and provide insights into the ongoing economic trajectory.
- Treasury Yields and Oil Prices: Treasury yields were mostly flat for shorter-dated maturities, while yields for both the 10-year and 30-year tenors fell by 2 basis points on Monday. The iShares 20+ Year Treasury Bond ETF rose 0.4%. In commodities markets, oil fell 1.1%, with West Texas Intermediate (WTI) light crude dropping below $76, hitting a fresh 7-week low as bearish demand developments in China outweighed supply concerns from rising Middle East tensions.
- Bitcoin and Other Commodities: Bitcoin held steady at around $68,000, failing to rally significantly despite bullish headlines over the weekend. Gold inched 0.5% lower, while copper and silver declined 0.7% and 1.4%, respectively.
Monday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
|---|---|---|
| Nasdaq 100 | 19,173.24 | 0.8% |
| S&P 500 | 5,482.99 | 0.4% |
| Dow Jones | 40,620.03 | 0.1% |
| Russell 2000 | 2,242.45 | -0.8% |
- The SPDR S&P 500 ETF Trust was 0.4% higher to $546.49.
- The SPDR Dow Jones Industrial Average held steady at $406.12.
- The tech-heavy Invesco QQQ Trust rose 0.8% to $466.90.
- The iShares Russell 2000 ETF fell 0.8% to 222.43.
- Sector-wise, the Consumer Discretionary Select Sector SPDR Fund outperformed, up by 1.7%, while the Energy Select Sector SPDR Fund lagged, down 1.2%.
Monday’s Stock Movers
- Tesla Inc. rallied 5% after a bullish note from Morgan Stanley putting the EV-maker as the analyst ‘top pick’ in the U.S. automotive industry.
- Booking Holdings Inc. rose 2.6% after Fubon issued a ‘New Buy’ rating with a price target at $4,533.
- Charles Schwab Corp. fell 1.6% after Piper Sandler cut the company’s rating to Neutral.
Stocks moving on earnings were:
- McDonalds Corp. soared 4.3%, despite reporting disappointing profits.
- ON Semiconductor Corp. skyrocketed 13.5%, eyeing the best one-day gain since November 2022, amid stronger-than-expected quarterly results.
- Revvity Inc. climbed 6.4%.
- CNA Financial Corp rose 3.7%.
- Affiliated Managers Group Inc. rose 3.9%.
- Alliance Resource Partners L.P. tumbled 6%.
Large-cap stocks reporting earnings after the close include:
- Hologic Inc.
- Woodward Inc.
- F5 Inc.
- Chesapeake Energy Corp
- Amkor Technology Inc.
- Crane Company
This week’s economic events and earnings releases will likely shape the direction of the stock market in the coming days. Traders and investors will be closely monitoring these developments to gauge potential changes in the economic landscape and the outlook for future market performance.
