Stock Market Today: Tech Earnings in Focus as Markets Show Resilience
Market Overview: October 28, 2024
As of Monday, October 28, 2024, the U.S. stock market is poised for a positive start to the trading week. Futures on major indexes are trending upward, with the Nasdaq 100 (NDX) leading the charge, up 0.68% as of 4:08 a.m. EST. The S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) futures are also in the green, rising 0.53% and 0.47%, respectively .
Tech Giants Take Center Stage
This week marks a crucial period for the stock market, with several tech behemoths scheduled to report their third-quarter earnings. Investors are eagerly awaiting results from Alphabet (GOOGL), Microsoft (MSFT), Meta Platforms (META), Amazon (AMZN), and Apple (AAPL) . These earnings reports are expected to provide valuable insights into the health of the tech sector and its impact on the broader market.
Key Economic Indicators on the Horizon
Market participants will be closely monitoring a series of important economic releases this week:
1. September’s Core Personal Consumption Expenditures report
2. Third-quarter GDP growth estimate
3. October’s Nonfarm Payrolls
4. Unemployment Rate
5. ISM Manufacturing Purchasing Managers Index
These indicators will offer crucial information about the current state of the U.S. economy and could significantly influence market sentiment .
Notable Market Movements
Despite the overall positive outlook, it’s worth noting that the S&P 500 and Dow Jones Industrial Average snapped their six-week winning streaks last Friday. However, the Nasdaq Composite managed to hit an all-time high, buoyed by strong performances from tech stocks .
Tesla (TSLA) has been a standout performer, with a remarkable rally over the past two days that has erased its losses for the year. The electric vehicle maker’s stock surge has contributed significantly to the Nasdaq’s recent gains .
Global Market Perspective
Asian markets are showing mixed results today, with Japanese stocks experiencing substantial gains. The Nikkei 225 jumped approximately 1.8%, benefiting from a weakened yen that reached a three-month low against the dollar. This currency movement is expected to boost Japan’s export-oriented economy .
In contrast, Chinese markets are facing challenges. Industrial profits in China slumped 27.1% year-over-year in September, marking the steepest drop since the onset of the pandemic in March 2020 . This decline highlights ongoing economic pressures in the world’s second-largest economy.
Oil Markets and Geopolitical Tensions
The oil market is reacting to recent geopolitical events, with both Brent and West Texas Intermediate oil futures dropping more than 4%. This decline comes in the wake of reports suggesting that Israel’s strikes on Iranian military installations caused “limited damage.” As a result, Citi has lowered its forecast for Brent oil prices by $4 to $70 per barrel over the next three months .
Looking Ahead: Market Expectations
As we move further into the week, market volatility may increase due to the confluence of high-profile earnings reports and critical economic data releases. Investors will be looking for signs of continued growth and resilience in the face of ongoing global economic challenges.
The tech sector’s performance will be particularly crucial, as it has been a significant driver of market gains. Any surprises in the earnings reports from the Magnificent Seven companies could have a substantial impact on overall market direction.
In conclusion, the stock market today reflects a complex interplay of factors, including corporate earnings, economic indicators, and global events. As investors navigate this landscape, they should remain vigilant and prepared for potential market shifts in the coming days.
