Stock Market Recap: S&P 500 and Nasdaq Rise on Strong Earnings, Dow Slips
Market Performance Overview
On Thursday, October 24, 2024, the U.S. stock market showed mixed results, with the S&P 500 and Nasdaq Composite posting gains while the Dow Jones Industrial Average experienced a slight decline. The S&P 500 ($SPX) closed up 0.20%, the Nasdaq 100 ($IUXX) rose 0.63%, while the Dow Jones Industrial Average ($DOWI) fell 0.31%. This diverse performance was largely driven by strong earnings reports from major companies and optimism about a potential economic soft landing.
Why Was the Market Up Today?
The stock market’s overall positive performance can be attributed to several factors:
1. Strong Earnings Reports: Many companies exceeded earnings expectations, boosting investor confidence. Tesla (TSLA) led the gains, surging over 16% after reporting its biggest quarterly profit in a year.
2. Soft Landing Optimism: Better-than-expected U.S. economic data reinforced hopes for a soft landing, supporting stock prices.
3. Decline in Treasury Yields: The 10-year Treasury note yield decreased by 2.6 basis points to 4.220%, easing some pressure on equities.
4. Positive Economic Indicators: Unexpected declines in weekly jobless claims and stronger manufacturing PMI data contributed to the market’s upward movement.
Key Stock Movers and Corporate News
Several companies made significant moves based on their earnings reports and other corporate news:
– Tesla (TSLA): Shares skyrocketed over 16% after reporting Q3 adjusted EPS of 72 cents, surpassing the consensus of 60 cents.
– United Parcel Service (UPS): Up more than 5% following better-than-expected Q3 adjusted EPS.
– Molina Healthcare (MOH): Led S&P 500 gainers with a 23% increase after strong Q3 revenue results.
– International Business Machines (IBM): Fell more than 6% after reporting Q3 revenue below consensus.
– Newmont (NEM): Dropped over 8%, leading S&P 500 losers, due to weaker-than-expected Q3 sales.
Upcoming Market Events
Investors should keep an eye on these upcoming events that could impact market performance:
1. Earnings Season Continuation: Approximately 20% of S&P 500 companies are set to report earnings in the coming week.
2. Federal Reserve Meeting: The market is pricing in a 95% chance of a 25 basis point rate cut at the November 6-7 FOMC meeting.
3. Economic Data Releases: Upcoming reports on home sales and the Fed’s Beige Book will provide further insights into economic conditions.
Global Market Context
The performance of overseas markets was mixed:
– Euro Stoxx 50: Up 0.57%
– China’s Shanghai Composite: Closed down 0.68%
– Japan’s Nikkei Stock 225: Recovered from a 3-week low, closing up 0.10%
Market Outlook and Analyst Perspectives
Despite the day’s gains, market analysts remain cautious due to ongoing geopolitical tensions in the Middle East and uncertainty surrounding the Federal Reserve’s future rate decisions. Bloomberg Intelligence reports that S&P 500 companies are expected to show an average 4.3% increase in quarterly earnings for Q3 compared to the previous year, down from earlier projections of 7.9% growth.
Conclusion
The stock market’s performance on October 24, 2024, reflects a complex interplay of strong corporate earnings, positive economic indicators, and ongoing global uncertainties. While the S&P 500 and Nasdaq showed resilience, the Dow’s slight decline highlights the selective nature of investor sentiment. As earnings season progresses and key economic data emerges, market participants will closely monitor these factors to gauge the overall health of the economy and potential future market directions.
