Stock Market Today: Futures Rise Ahead of Big Tech Earnings and Key Economic Data
Market Overview: October 28, 2024
As of 4:08 a.m. EST on Monday, October 28, 2024, U.S. stock futures are signaling a positive start to the trading week. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are up 0.68%, 0.53%, and 0.47%, respectively. This upward trend comes as investors eagerly anticipate a week packed with third-quarter earnings reports from major tech giants and crucial economic data releases.
Major Indexes and Market Sentiment
The stock market’s performance has been mixed in recent days. While the Nasdaq Composite hit an all-time high on Friday, both the S&P 500 and Dow Jones Industrial Average snapped their six-week winning streaks. This divergence highlights the current focus on technology stocks, particularly as we enter a critical earnings week for the sector.
The tech-heavy Nasdaq has been buoyed by strong performances from companies like Tesla (TSLA), which saw a significant rally last week. Investors are now turning their attention to upcoming earnings reports from other tech giants, with shares of Meta Platforms (META), Amazon (AMZN), and Microsoft (MSFT) all showing gains in anticipation.
Upcoming Earnings and Market Events
This week marks a pivotal moment in the third-quarter earnings season, with several high-profile companies set to report their results. The “Magnificent 7” tech companies taking center stage include:
1. Alphabet (GOOGL)
2. Microsoft (MSFT)
3. Meta Platforms (META)
4. Amazon (AMZN)
5. Apple (AAPL)
Other notable companies reporting this week are Intel (INTC), Advanced Micro Devices (AMD), McDonald’s (MCD), Eli Lilly (LLY), ExxonMobil (XOM), and Starbucks (SBUX). These reports will provide crucial insights into the health of various sectors and the overall economy.
Economic Indicators to Watch
Investors will be closely monitoring several key economic indicators this week:
1. September’s Core Personal Consumption Expenditures (PCE) report
2. Third-quarter GDP growth estimate
3. October’s Nonfarm Payrolls
4. October’s Unemployment Rate
5. October’s ISM Manufacturing Purchasing Managers Index
These releases will offer valuable insights into the U.S. economy’s health and could significantly influence market sentiment and Federal Reserve policy decisions.
Global Market Trends
Asian markets showed mixed performance on Monday, with Japanese stocks experiencing significant gains. The Nikkei 225 jumped about 1.8% as the yen weakened to a three-month low against the dollar, potentially benefiting the country’s export-oriented economy.
In China, industrial profits in September saw a steep 27.1% year-over-year decline, marking the most significant drop since the start of the pandemic in March 2020. This data point raises concerns about the ongoing challenges facing the world’s second-largest economy.
Oil Market Developments
Oil prices experienced a notable decline, with both Brent and West Texas Intermediate oil futures dropping more than 4% on Monday. This decrease follows reports of limited damage from Israel’s strikes on Iranian military installations over the weekend, easing concerns about potential supply disruptions in the region. Citi has lowered its forecast for Brent oil prices by $4 to $70 per barrel over the next three months.
Looking Ahead
As we move through this crucial week, market participants will be keenly focused on the performance of major tech companies and the implications of upcoming economic data. The interplay between corporate earnings, economic indicators, and geopolitical developments will likely drive market sentiment and potentially set the tone for the remainder of the year.
Investors should remain vigilant and prepared for potential market volatility as these significant events unfold. The stock market’s performance in the coming days could provide valuable insights into the broader economic outlook and the trajectory of various sectors as we approach the end of 2024.
