Stock Market Today: Tech Earnings Shake Wall Street as Economic Data Looms
The stock market is experiencing turbulence on Thursday, October 31, 2024, as investors digest a flurry of earnings reports from tech giants and anticipate crucial economic data. Major indexes are showing signs of weakness in early trading, with futures pointing to a lower open.
Market Performance
As of the latest available data, S&P 500 futures are down 0.78%, Nasdaq 100 futures have fallen about 1%, and Dow Jones Industrial Average futures have declined by 210 points, or 0.5%. This follows a day of modest losses on Wednesday, where the S&P 500 dropped 0.3%, the Dow slipped 0.2%, and the Nasdaq Composite fell nearly 0.6%.
Tech Earnings in Focus
The technology sector is taking center stage, with several high-profile companies reporting earnings. Microsoft (MSFT) shares are down nearly 4% in pre-market trading after its revenue guidance for the fiscal second quarter disappointed investors. The company’s outlook called for revenue between $68.1 billion to $69.1 billion, falling short of analyst expectations of $69.83 billion.
Meta Platforms (META) also faces pressure, with shares dropping 3% after missing expectations for user growth and warning of increased capital expenditures in 2025. Meanwhile, investors are eagerly awaiting results from Apple (AAPL) and Amazon (AMZN), which are set to report later today.
Economic Data on Deck
Market participants are closely watching for key economic indicators that could influence Federal Reserve policy:
1. Personal Consumption Expenditures (PCE) Price Index: Set for release this morning, the PCE is the Fed’s preferred inflation gauge. Economists expect a 0.2% monthly increase and a 2.1% year-over-year rise.
2. Employment Cost Index: The third-quarter reading will provide insights into wage growth and labor costs.
3. Weekly Jobless Claims: This report will offer the latest snapshot of the job market’s health.
These data points, along with Friday’s October payrolls report, will be crucial in shaping expectations for the Fed’s upcoming interest rate decision on November 7.
Corporate Earnings Highlights
Several other notable companies have reported earnings:
– Merck & Co. (MRK): Expected to report earnings per share of $1.50, representing a 29.58% decrease compared to the same quarter last year.
– Mastercard (MA): Analysts forecast earnings per share of $3.73, a 10.03% increase year-over-year.
– Uber Technologies (UBER): Projected to report earnings per share of $0.41, marking a significant 310% increase from the previous year.
– Starbucks (SBUX): Reported disappointing results with global same-store sales dropping 7% in the fiscal fourth quarter.
Market Outlook and Analyst Perspectives
Jamie Cox, managing director at Harris Financial Group, commented on the recent GDP data: “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.”
Investors are navigating a complex landscape of corporate earnings, economic data, and monetary policy expectations. The technology sector’s performance remains a key driver of overall market sentiment, while upcoming economic releases could provide crucial insights into the Fed’s next moves.
As the trading day unfolds, market participants will be closely monitoring any shifts in the major indexes and reacting to the influx of corporate earnings and economic data. With the Federal Reserve’s policy meeting approaching, every piece of information will be scrutinized for its potential impact on interest rates and the broader economic outlook.
Looking Ahead
With the holiday season approaching and the year-end in sight, investors will be keen to see how the market navigates the current challenges and whether it can maintain its resilience in the face of economic uncertainties and geopolitical tensions. The performance of key sectors like technology, healthcare, and consumer discretionary will likely set the tone for market direction in the coming weeks.
