Stock Market Today: S&P 500 Hits New Record as Earnings Season Heats Up
Market Overview: October 14, 2024
The U.S. stock market opened on a positive note this Monday, October 14, 2024, with the S&P 500 (^GSPC) reaching a new record high. As of 10:32 AM EDT, the broader index was up approximately 0.6%, continuing its impressive run after closing above 5,800 for the first time on Friday . The tech-heavy Nasdaq Composite (^IXIC) showed even stronger performance, jumping around 1%, while the Dow Jones Industrial Average (^DJI) hovered near the flatline .
Major Indexes and Market Movers
The S&P 500’s push to new heights is being supported by strong performances in various sectors. Notably, the Financials Select Sector SPDR (XLF), the Industrials Select Sector SPDR (XLI), and the Real Estate Select Sector SPDR (XLRE) saw significant gains last week, increasing by 1.9%, 1.8%, and 1% respectively .
Nvidia (NVDA), the AI chipmaking giant, is making waves once again. The stock rose 1% in premarket trading, putting it on track to surpass its previous record closing price of $135.58 . With a market capitalization of $3.3 trillion, Nvidia is poised to reclaim its position as the world’s most valuable company, currently trailing only Apple (AAPL) .
Earnings Season in Full Swing
This week marks the first full week of third-quarter earnings reports, which are expected to play a crucial role in sustaining the current market rally. Investors are eagerly awaiting results from major financial institutions, including:
– Goldman Sachs (GS)
– Citigroup (C)
– Bank of America (BAC)
– Morgan Stanley (MS)
These reports follow last week’s strong performances from JPMorgan Chase (JPM) and Wells Fargo (WFC), which helped drive the Dow and S&P 500 to new records .
Economic Data and Federal Reserve Outlook
Recent economic indicators are painting a complex picture for investors and policymakers alike. The producer price index (PPI) for final demand remained unchanged month-over-month at 0.2% in September, aligning with consensus estimates . Year-over-year, the PPI rose 1.8%, indicating moderate inflationary pressures.
Consumer sentiment, as reported by the University of Michigan, came in at 68.9% for October, missing the consensus estimate of 71% . This data, combined with recent employment figures and inflation readings, is fueling debate about the Federal Reserve’s next moves regarding interest rates.
Upcoming Market Events
Investors should keep an eye on several key events this week:
1. Earnings reports: Besides the aforementioned banks, companies like United Airlines (UAL), ASML (ASML), Netflix (NFLX), and American Express (AXP) are set to release their quarterly results .
2. Retail sales data: This report will provide insights into consumer spending and economic resilience in the face of high interest rates .
3. Oil market developments: OPEC has cut its demand forecast for 2024 and 2025, leading to a more than 2% drop in oil futures .
Global Market Influences
Chinese stocks managed to rise on Monday, resuscitating their recent historic rally despite initial uncertainty over Beijing’s latest stimulus promises . This development could have ripple effects on global markets, including U.S. stocks with significant exposure to the Chinese economy.
As the stock market continues to test new highs, investors remain focused on corporate earnings, economic data, and potential policy shifts. The coming days will be crucial in determining whether the current bull market, now turning two years old, can maintain its momentum in the face of ongoing economic uncertainties.
