Stock Market Today: October 31, 2024 – Market Turbulence Amid Tech Earnings
As the stock market closes on Thursday, October 31, 2024, investors are grappling with a mix of economic data and high-profile earnings reports that have sent ripples through major indexes. Today’s market performance underscores the delicate balance between corporate earnings, economic indicators, and investor sentiment.
Major Market Indexes Performance
The day has been marked by downward pressure on major U.S. stock indexes. As of the latest data:
– The S&P 500 futures are down 0.78%
– The Nasdaq 100 futures have fallen about 1%
– The Dow Jones Industrial Average futures have declined by 210 points, or 0.5%
This downturn comes as investors digest disappointing earnings reports from tech giants and anticipate crucial economic data releases.
Tech Earnings Shake Market Confidence
The technology sector, a key driver of market performance, has delivered mixed results:
– Microsoft (MSFT) shares slid nearly 4% after its revenue guidance for the fiscal second quarter fell short of analyst expectations. The company projected revenue between $68.1 billion to $69.1 billion, below the $69.83 billion analysts were looking for.
– Meta Platforms (META) dropped 3% in after-hours trading. Despite beating earnings estimates, concerns over increased capital expenditures for 2025 have worried investors.
– Amazon (AMZN), Apple (AAPL), and Intel (INTC) are set to report their earnings after market close today. Expectations are high, with Amazon projected to post a 25% year-over-year profit increase to $12.32 billion. Apple is anticipated to show a 5% revenue increase, while Intel is expected to report a net loss of almost $1 billion and an 8% decline in revenue.
Economic Data in Focus
Investors are closely watching key economic indicators:
– The third-quarter U.S. gross domestic product (GDP) grew at a 2.8% annualized rate, slightly below the 3.1% consensus forecast from Dow Jones.
– The Personal Consumption Expenditures (PCE) price index for September is due today. This is the Federal Reserve’s preferred inflation indicator, with economists expecting a 0.2% monthly increase and a 2.1% year-over-year rise.
– Friday’s October payrolls report is another crucial piece of data that will influence the Federal Reserve’s interest rate decision at its upcoming November 7 meeting.
Market Movers and Shakers
Several companies have made notable moves:
– Booking Holdings (BKNG) jumped almost 6% after reporting strong third-quarter results, with adjusted earnings of $83.39 per share and revenue of $7.99 billion, surpassing analyst expectations.
– Starbucks (SBUX) shares dipped nearly 1% following disappointing fiscal fourth-quarter results, with global same-store sales dropping 7% due to weakened demand in the U.S. and China.
Looking Ahead: Market Catalysts
As we move into November, several factors will continue to influence market direction:
1. Tech Earnings: The market will be digesting reports from Apple, Amazon, and Intel, which could set the tone for tech sector performance.
2. Federal Reserve Decision: The upcoming Fed meeting on November 7 will be crucial, with investors looking for signs of potential interest rate cuts.
3. Economic Indicators: Continued focus on inflation data and employment figures will shape expectations for economic growth and monetary policy.
4. Global Events: Geopolitical developments and international trade relations remain potential market movers.
As Jamie Cox, managing director at Harris Financial Group, noted, “Growth up, inflation down is precisely what you want to see. The Fed doesn’t need to be afraid of a stable and growing economy to normalize rates this cycle so long as disinflation persists.”
In conclusion, the stock market on October 31, 2024, reflects a complex interplay of corporate performance, economic data, and investor expectations. As the day unfolds, market participants will be keenly watching for further developments that could shape the financial landscape in the coming weeks and months.
