Stock Market Today: Tech Earnings Shake Wall Street as Inflation Data Looms
The stock market is experiencing significant turbulence on Thursday, October 31, 2024, as investors digest a flurry of big tech earnings reports and brace for crucial economic data. Major indexes are trending lower in early trading, with technology stocks leading the decline.
Market Indexes Under Pressure
As of the latest update, the major U.S. stock market indexes are showing notable declines:
– The S&P 500 (^GSPC) is down 0.7%, trading at 5,761.89 points.
– The Dow Jones Industrial Average (^DJI) has fallen 0.5%, hovering around 41,889.72 points.
– The tech-heavy Nasdaq Composite (^IXIC) is experiencing the sharpest decline, down 0.7% at 18,364.72 points.
These movements reflect investor concerns about the sustainability of tech sector growth and the broader economic outlook.
Tech Earnings Drive Market Sentiment
The market’s downturn is largely attributed to disappointing earnings reports from tech giants:
– Meta Platforms (META) shares are falling in pre-market trading despite beating earnings estimates. Investors are worried about the company’s plans to significantly increase capital spending in 2025, particularly on AI infrastructure.
– Microsoft (MSFT) stock is down after its cloud services revenue fell short of analysts’ expectations, raising questions about the growth trajectory of its Azure platform.
– After the closing bell today, Amazon (AMZN), Apple (AAPL), and Intel (INTC) are set to report their earnings, which could further impact market direction. Amazon is expected to post a 25% year-over-year profit increase, while Apple investors will be keen to see the impact of the new AI-powered iPhone 16 on revenues.
Upcoming Economic Data and Market Events
Investors are eagerly awaiting several key economic reports due today:
1. Personal Consumption Expenditures (PCE) Price Index: This Federal Reserve’s preferred inflation gauge for September will be released at 8:30 AM EDT. Economists expect the core PCE index to show a 2.7% year-over-year increase, unchanged from the previous month.
2. Initial Jobless Claims: The latest data on unemployment benefit claims will provide insights into the labor market’s health.
3. Employment Cost Index: This third-quarter report will offer a comprehensive view of labor costs, a critical factor in inflation trends.
These reports will be crucial in shaping expectations for the Federal Reserve’s upcoming interest rate decision on November 7.
Major Stock News
Several companies are making headlines today:
– Peloton (PTON) has named a former Apple executive as its new CEO to steer the company’s turnaround efforts. The stock is up 24.06% in pre-market trading.
– Uber (UBER) shares are down 7.56% ahead of its earnings report, as investors assess the impact of recent regulatory challenges on its business model.
– Estée Lauder (EL) is the biggest loser among S&P 500 companies, with its stock plummeting 24.90% following disappointing earnings results.
Market Outlook
As we move through the trading day, market participants will be closely monitoring the PCE inflation data and its potential impact on Federal Reserve policy. The central bank’s approach to interest rates in the coming months will be critical in shaping market sentiment and economic growth prospects.
The tech sector’s performance remains a key driver of overall market direction. With more earnings reports on the horizon and ongoing concerns about AI-related spending, volatility is likely to persist in the near term.
Investors are advised to stay vigilant and diversified in this dynamic market environment. As always, it’s crucial to consider long-term financial goals and risk tolerance when making investment decisions.
Stay tuned for further updates as this eventful trading day unfolds on Wall Street.
