WS: il rally non si ferma
October 21, 2024
Linea Mercati Interview 10/21/24
October 22, 2024By Lisa Pauline Mattackal and Purvi Agarwal
October 21, 20249:05 AM EDTUpdated a min ago
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 19, 2024. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab
- Summary
- Companies
- Boeing gains after offering new wage deal
- Humana climbs after report Cigna resumes merger talks
- 114 S&P 500 companies to report results this week
- Futures down: Dow 0.15%, S&P 500 0.27%, Nasdaq 0.45%
Oct 21 (Reuters) – Wall Street’s main indexes were poised to dip on Monday following the previous week’s rally, ahead of major earnings reports that could influence whether indexes retreat from record highs or sustain the momentum.
Benchmark 10-year Treasury yields rose as high as 4.13%, pressuring rate-sensitive growth stocks.
All the so-called Magnificent Seven group of stocks slipped in premarket trading, led by a 1.1% fall in Tesla (TSLA.O), opens new tab, while Nvidia (NVDA.O), opens new tab dropped 0.3% and Apple (AAPL.O), opens new tab lost 0.4%.
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Meanwhile, Boeing (BA.N), opens new tab jumped 3% on news that workers could vote on a new deal to end a costly five-week-long strike. The planemaker is scheduled to report results later this week.
Dow E-minis were down 66 points, or 0.15%, U.S. S&P 500 E-minis were down 15.75 points, or 0.27% and Nasdaq 100 E-minis were down 91.25 points, or 0.45%.
A broadly positive start to the quarterly earnings season, upbeat economic data and continued optimism around Federal Reserve rate cuts had propelled indexes higher over the past two weeks.
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The Dow Jones Industrial Average (.DJI), opens new tab and the benchmark index (.SPX), opens new tab notched up record closing highs on Friday. Both indexes, along with the Nasdaq, logged a sixth consecutive week of gains in their best winning streak so far this year.
“What we’re seeing today is a market that is basically taking a bit of a breather and probably consolidating some of those strong gains that we had last week,” said Peter Cardillo, chief market economist, Spartan Capital Securities.
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00:09Dow and S&P 500 notch closing highs, lifted by tech stocks
“The market last week closed at record highs and despite the run up in yields… remains resilient because of the fact that the earnings are coming in better than expected.”
Among S&P 500 companies, 114 are expected to report quarterly earnings this week, including International Business Machines (IBM.N), opens new tab, Tesla (TSLA.O), opens new tab and Coca-Cola (KO.N), opens new tab. Results from Texas Instruments (TXN.O), opens new tab will turn the spotlight on the chip sector.
Among S&P 500 companies that reported as of Friday, 83.1% beat earnings estimates versus the 79.1% average of the previous four quarters, according to data compiled by LSEG.
However, risks such as rising geopolitical tensions in the Middle East, gains in Treasury yields and some volatility ahead of the upcoming U.S. presidential election are pressuring equities.
In broader markets, trades expected to perform well if Republican candidate Donald Trump wins in November were catching bids, aspolls showed the former U.S. president’s chances improving.
The dollar and stocks gain ground ahead of Nov. 5 vote
“As the election date approaches, even small changes in tight polls could drive seemingly erratic swings in market sentiment,” Danske Bank analysts said.
Spirit Airlines (SAVE.N), opens new tab skyrocketed 36% after the company reached an agreement to extend a debt refinancing deadline by two months.
Humana (HUM.N), opens new tab gained 4.6% after a report said Cigna (CI.N), opens new tab had resumed merger talks with the health insurer.
Home sales, flash PMI and durable goods reports are on the data docket this week, as is the Federal Reserve’s Beige Book.
Fed officials Neel Kashkari, Jeffrey Schmid and Mary Daly are scheduled to speak on the day.
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Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai
Our Standards: The Thomson Reuters Trust Principles., opens new tab
