Stock Market Recap: S&P 500 Eyes Record Close, Netflix Surges on Strong Earnings
The stock market closed on a high note on Friday, October 18, 2024, with major indexes posting gains and the S&P 500 eyeing its longest weekly winning streak of the year. Investors were buoyed by strong corporate earnings, particularly from the tech sector, and positive economic data.
Market Performance
The S&P 500 (^GSPC) added about 0.5% to close at 5,855.99, marking a fresh all-time high and its sixth consecutive week of gains. This impressive run represents the longest streak for the index in 2024. The tech-heavy Nasdaq Composite (^IXIC) led the day’s gains, rising 0.8% to finish at 18,499.70. Meanwhile, the Dow Jones Industrial Average (^DJI) climbed 0.2% to 43,133.48, building on its record-setting performance from the previous day.
Why Was the Market Up Today?
Several factors contributed to the market’s positive performance:
1. Strong Earnings Reports: Netflix (NFLX) delivered a stellar earnings report, beating Wall Street estimates on both revenue and profits. The streaming giant’s shares surged by approximately 10%, setting a positive tone for upcoming Big Tech earnings.
2. Economic Data: Recent economic indicators have boosted investor confidence. The Department of Labor reported that initial jobless claims came in lower than expected, while retail sales showed moderate growth, indicating resilience in consumer spending.
3. Sector Performance: The technology sector, buoyed by Netflix’s performance, led the day’s gains. Additionally, the utilities sector has been a standout performer in 2024, with the S&P 500 Utilities ETF (XLU) up 29% year-to-date.
Major Stock News
1. Netflix (NFLX): The streaming platform’s shares jumped around 10% after reporting strong Q3 results, with significant growth in its advertising business.
2. Apple (AAPL): The tech giant saw its stock rise 1% on news of healthy iPhone 16 sales in China, which grew by 20% in the first three weeks of launch.
3. CVS Health Corporation (CVS): Shares plummeted by over 7% following the announcement of a CEO change and lower-than-expected Q3 earnings forecast.
4. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM): The company’s stock surged 9.8% after beating earnings expectations, signaling strong demand in the semiconductor industry.
5. The Travelers Companies Inc. (TRV): Shares rose 9% following better-than-expected Q3 results, highlighting strength in the insurance sector.
Upcoming Market Events
Investors are looking ahead to a busy week of earnings reports, with several Big Tech companies scheduled to release their quarterly results. These reports will be crucial in determining the market’s direction in the coming weeks.
Commodities and Other Markets
In the commodities market, gold (GC=F) prices hit a new record, topping $2,700 an ounce for the first time. This surge is attributed to ongoing geopolitical tensions in the Middle East and uncertainty surrounding the upcoming U.S. presidential election, prompting investors to seek safe-haven assets.
Market Outlook
As the stock market continues its upward trajectory, analysts remain cautiously optimistic. The strong performance of tech stocks and positive economic indicators suggest a resilient economy. However, investors should remain vigilant of potential headwinds, including geopolitical tensions and the upcoming election cycle.
Conclusion
Friday’s market performance caps off a strong week for Wall Street, with the S&P 500 poised for its longest weekly winning streak of 2024. As earnings season continues to unfold, investors will be closely watching for signs of sustained corporate growth and economic stability. With the market at record highs, the coming weeks will be crucial in determining whether this bull run can maintain its momentum.
