Stock Market Today: S&P 500 and Nasdaq Rise as Tech Giants Lead the Way
The stock market on Wednesday, November 20, 2024, showed mixed results as investors focused on tech sector performance and geopolitical tensions. This article provides an in-depth look at current market indexes, upcoming market events, and major stock news that are shaping today’s trading landscape.
Market Performance: S&P 500 and Nasdaq Climb, Dow Jones Slips
As of the latest trading session, the S&P 500 Index ($SPX) closed up 0.40% at 5,916.98, while the Nasdaq 100 Index ($IUXX) finished 0.71% higher. These gains were primarily driven by strong performances in the technology sector, particularly among the Magnificent Seven tech stocks. In contrast, the Dow Jones Industrial Average ($DOWI) closed down 0.28% at 43,268.94, marking its fourth consecutive day of decline.
The tech-heavy Nasdaq Composite has shown resilience, posting two successive positive closes and finishing at 18,987.47, up more than 1% or 195.66 points. This upward momentum is largely attributed to the anticipation surrounding Nvidia’s earnings report, expected after market close today.
Sector Performance and Market Breadth
Among the S&P 500 sectors, Communication Services and Technology led the gains, with the Communication Services Select Sector SPDR (XLC) up 0.8% and the Technology Select Sector SPDR (XLK) rising 0.7%. On the downside, Energy and Financials sectors faced pressure, with the Energy Select Sector SPDR (XLE) down 0.6% and the Financials Select Sector SPDR (XLF) declining 0.7%.
Market breadth was positive, with advancers outnumbering decliners on the NYSE by a 1.14-to-1 ratio. The Nasdaq showed an even stronger trend, with a 1.34-to-1 ratio favoring advancing issues.
Spotlight on Nvidia and Tech Giants
Nvidia (NVDA) is at the center of market attention, with its stock jumping 4% ahead of its earnings report. Analysts are expecting record-breaking results, with Q3 revenue forecasts at $33.25 billion and projections for 2025 revenue reaching $126.58 billion. The performance of Nvidia and other tech giants is crucial for market sentiment and could significantly influence near-term market direction.
Major Company News and Stock Movements
1. Walmart (WMT) shares climbed 3% after reporting stronger-than-expected Q3 adjusted EPS and raising its full-year adjusted EPS forecast.
2. Lowe’s (LOW) saw its stock drop more than 4% following a Q3 gross margin report that fell short of analyst expectations.
3. H&R Block (HRB) and Intuit (INTU) experienced significant declines, down more than 8% and 5% respectively, following reports of a potential government-led free tax filing app.
4. Medtronic Plc (MDT) shares fell more than 3% after forecasting Q3 EPS below consensus estimates.
5. Stellantis NV (STLA) declined more than 2% amid concerns over rising auto inventory levels.
Economic Data and Housing Market Update
The latest economic data revealed some weakness in the housing market. October housing starts fell 3.1% month-over-month to 1.311 million units, below expectations of 1.334 million. Additionally, building permits for October came in at 1.416 million units, missing the consensus estimate of 1.44 million. These figures suggest potential challenges in the real estate sector, which could have broader economic implications.
Geopolitical Tensions and Market Risks
Investors remain cautious due to escalating geopolitical tensions between Russia and Ukraine. Reports of Ukraine using Western-supplied missiles to strike Russian territory have raised concerns about potential conflict escalation. Furthermore, Russian President Putin’s approval of an updated nuclear doctrine that expands conditions for using atomic weapons has added to market uncertainty.
Looking Ahead: Key Events and Earnings Reports
As the market moves forward, several key events and earnings reports are on the horizon:
1. Nvidia’s (NVDA) earnings report, expected after market close on November 20, 2024.
2. Upcoming earnings from Palo Alto Networks (PANW), Snowflake (SNOW), and Target (TGT).
3. Continued monitoring of geopolitical developments and their potential impact on market sentiment.
4. Attention to upcoming economic data releases for further insights into the overall economic health.
Conclusion: Market Resilience Amid Mixed Signals
The stock market today demonstrates resilience in the face of mixed economic signals and geopolitical tensions. While tech stocks continue to drive gains in the S&P 500 and Nasdaq, concerns over housing market weakness and international conflicts keep investors cautious. As we move forward, the focus will remain on high-profile earnings reports, particularly in the tech sector, and any developments in the global political landscape that could influence market direction.
Investors are advised to stay informed about these key factors and maintain a balanced approach to their investment strategies in this dynamic market environment.
