Stock Market Recap: Indexes Rise on Strong Earnings and Economic Data
Market Performance: S&P 500, Nasdaq, and Dow Jones
On Thursday, October 24, 2024, the U.S. stock market demonstrated resilience, with major indexes showing positive movement. The S&P 500 ($SPX) climbed 0.20%, while the Nasdaq 100 ($IUXX) outperformed with a 0.63% gain. The Dow Jones Industrial Average ($DOWI) experienced a slight dip of 0.31% .
Why was the market up today? The upward trend can be attributed to strong corporate earnings reports and optimistic economic data, reinforcing hopes for a soft landing scenario.
Key Drivers of Market Movement
1. Earnings Optimism: With over 100 S&P 500 companies having reported their Q3 results, 76% have surpassed earnings estimates . This positive trend has bolstered investor confidence.
2. Economic Indicators: Several economic reports released today painted a picture of resilience:
– Weekly jobless claims unexpectedly fell to 227,000, indicating a robust labor market .
– The October S&P manufacturing PMI rose to 47.8, exceeding expectations .
– September new home sales reached a 16-month high at 738,000 .
3. Treasury Yields: A decline in the 10-year Treasury yield by 2.6 basis points to 4.220% provided additional support to equities .
Notable Stock Movements
Tesla (TSLA) emerged as a standout performer, surging over 16% after reporting its largest quarterly profit in a year and raising its full-year capital expenditure forecast .
United Parcel Service (UPS) saw a 5% increase following better-than-expected Q3 adjusted earnings per share .
On the downside, Newmont (NEM) led losses in the S&P 500, dropping more than 8% due to weaker-than-expected Q3 sales .
International Business Machines (IBM) fell over 6% after reporting Q3 revenue below consensus estimates .
Sector Performance and Market Breadth
While specific sector data wasn’t provided in the search results, the overall market breadth appears positive, with notable gains in technology and delivery services offsetting losses in some industrial and mining stocks.
Upcoming Market Events
Investors should keep an eye on the following:
1. Earnings Reports: Approximately 20% of S&P 500 companies are scheduled to report earnings this week . Key companies reporting include:
– Allegion plc (ALLE)
– Capital One Financial Corp (COF)
– Dexcom Inc (DXCM)
– Edwards Lifesciences Corp (EW)
2. Economic Data: Watch for upcoming releases that could impact market sentiment and Federal Reserve policy decisions.
3. Federal Reserve Watch: Markets are currently pricing in a 95% chance of a 25 basis point rate cut at the November 6-7 FOMC meeting .
Global Market Context
Overseas markets showed mixed performance:
– Euro Stoxx 50: Up 0.57%
– China’s Shanghai Composite: Down 0.68%
– Japan’s Nikkei Stock 225: Up 0.10%
Looking Ahead: Market Outlook
As we move forward, several factors could influence market direction:
1. Earnings Trajectory: The current earnings season is crucial, with S&P 500 companies expected to report an average 4.3% increase in quarterly earnings compared to last year .
2. Geopolitical Tensions: Ongoing conflicts in the Middle East continue to be a concern for investors, potentially impacting market stability.
3. Federal Reserve Policy: Investors will closely monitor economic data for clues about future interest rate decisions.
In conclusion, today’s stock market recap highlights a resilient market buoyed by strong corporate earnings and positive economic indicators. As we navigate through a busy earnings season and monitor global events, investors should remain vigilant and prepared for potential market shifts in the coming days and weeks.
