US stocks climbed on Monday as Middle East war fears cooled and ahead of a pivotal week packed with Big Tech earnings, an inflation update, and a crucial monthly jobs report.
The tech-heavy Nasdaq Composite (^IXIC) jumped roughly 0.5%, while the S&P 500 (^GSPC) rose 0.4%. The Dow Jones Industrial Average (^DJI) also moved up about 300 points, or about 0.7%.
The market was bolstered by relief that Israel limited its retaliatory strikes on Iran to military targets and not oil or nuclear facilities as feared. Oil futures tumbled about 6%, taking Brent (BZ=F) down to $71.42 per barrel while West Texas Intermediate (CL=F) settled just above $67.
The focus is on tech stocks, with five of the “Magnificent Seven” megacaps due to release earnings this week, after the Nasdaq Composite bucked Friday’s losing trend to close near a record.
Investors are looking to Alphabet (GOOGL, GOOG), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta (META) results to help boost the S&P 500 to new heights too. But questions remain as to whether Big Tech’s investments in AI are paying off in profits. The reports are the highlight in a very busy week of results, with 169 of the S&P 500’s members expected to release updates.
At the same time, investors are bracing for a rush of economic data that could put bets on a “soft landing” to the test. In the forefront are the latest reading on the Federal Reserve’s preferred inflation gauge and the October jobs report — both seen as crucial to policymakers’ decision on whether to cut interest rates at their November meeting.
With the US elections just days away, Trump Media & Technology Group stock (DJT) extended its five-week surge on Monday, rising as much as 20% following Donald Trump’s highly criticized rally at Manhattan’s Madison Square Garden over the weekend.
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McDonald’s to report Q3 earnings as E. coli outbreak shakes investor confidence
McDonald’s (MCD) is looking to recover ground as an E. coli outbreak disrupted business ahead of its Q3 earnings report.
On Tuesday before market open, McDonald’s is expected to report revenue of $6.81 billion and earnings per share of $3.20, both up by a hair year over year. In the US, sales are expected to increase 0.19%. The quarter ended on Sept. 30, prior to the outbreak.
However, the majority of the focus among investors is likely on the outbreak. Sentiments are mixed as bears focus in on “uncertainty” around the “food safety fallout,” per a note from TD Cowen analyst Andrew Charles. Bulls are encouraged by the relaunch of the McRib in December, a new national value platform in January, and chicken strips and wraps coming in May or June 2025.
Tesla short sellers lose more than $4 billion on EV-maker’s post-earnings stock rally
Yahoo Finance’s Laura Bratton reports:
Tesla’s (TSLA) post-earnings stock rally has cost short sellers billions.
Tesla short sellers lost $4.2 billion in the two days following the EV maker’s third quarter earnings last Wednesday, according to data from S3 Partners.
Tesla reported a higher-than-expected third quarter profit and improved margins after the bell Oct. 23. Those beats helped Tesla stock notch its biggest single-day gain in a decade. The stock jumped 22% last Thursday, its best day since 2013, and shares rose another 3.3% Friday.
JPMorgan Chase (JPM) CEO Jamie Dimon didn’t discuss US election candidates during a public appearance Monday, but he had plenty to say about his current regulators in Washington, DC.
The boss of the biggest boss in the US called a raft of regulatory proposals from his overseers as “an onslaught,” criticized Consumer Financial Protection Bureau (CFPB) director Rohit Chopra and made it clear the industry is willing to push back on new rules in court.
“It’s time to fight back,” Dimon said while speaking at an American Bankers Association convention in New York City. “I’ve had it with this sh*t.”
Apple (AAPL) is finally releasing its first set of Apple Intelligence features for the iPhone, iPad, and Mac. It’s a massive moment for the world’s most valuable company by market cap, with number of Wall Street analysts are banking on the platform to help reaccelerate iPhone sales.
It’s also a big bet for Apple. The company is pushing the software to some of its most important products. And if it doesn’t hit the mark out of the gate, it could sour users’ perception of Apple Intelligence moving forward.
Sam Altman-backed nuclear power stock surges nearly 30%, extending massive rally
Oklo (OKLO), the nuclear power company of which Sam Altman is chair and investor, saw shares surge almost 30% Monday to $24.44, nearly triple its share price of $8.84 last month.
The stock and its peers have soared as investors look to nuclear energy as the next big AI trade. Nuclear energy does not directly produce greenhouse gases, and Big Tech companies have recently turned to it to balance their growing power demands with their climate goals. Amazon (AMZN), Alphabet (GOOGL, GOOG), and Oracle (ORCL) have all recently announced investments in so-called small modular nuclear reactors, or SMRs, which are designed to produce cheaper, faster, greener energy than traditional nuclear facilities.
While a number of companies are developing SMRs, none have been deployed in the US to date.
Altman owns a 2.6% stake in Oklo and chairs its board. Peter Thiel and Cathie Wood are also investors.
Utility stocks outperformed on Monday, with the S&P 500 Utilities Sector ETF (XLU) up more than 1%. Year to date, Utilities have led the market gains, up 28% compared to the broader index’s 22% rise.
Financials (XLF) was the second-best-performing sector by midday trading on Monday, up nearly 1%. Meanwhile Energy (XLE) stocks lagged as oil sank more than 5%.
Today at 3:15 PM UTC
Bitcoin hovers above $68,000 per token
Bitcoin prices (BTC-USD) rose more than 1.5% on Monday morning to hover above $68,000 per token. The cryptocurrency rose to a June high just north of $69,000 within the past 24 hours.
Crypto-related stocks also rose, with Mara Holdings (MARA), MicroStrategy (MSTR), and Riot Blockchain (RIOT) all gaining more than 4%.
Today at 2:34 PM UTC
DJT surges 20% as investors bet on Trump win
Trump Media & Technology Group stock (DJT) rose as much as 20% on Monday morning, extending a five-week rally.
The stock is up more than 275% since Sept. 26, when shares hit their lowest intraday level since the company behind Truth Social went public.
Today at 2:15 PM UTC
Energy stocks lag as oil prices tumble 5%
Energy stocks lagged their S&P 500 cohort on Monday as oil sank more than 5% following Israel’s retaliatory attack that spared Iran’s oil infrastructure.
The S&P Energy Select (XLE) ETF fell roughly 1% in early trading.
Today at 1:45 PM UTC
Spotify stock climbs after Wells Fargo names it a top pick
Spotify (SPOT) stock rose nearly 1% in morning trading after Wells Fargo (WFC) named it a top pick, maintaining an Overweight rating and raising the price target to $470 from $420 a share.
Spotify has soared over 120% as the audio streaming giant has made good on its turnaround plan. After a weak performance in late 2022, Spotify announced layoffs, enacted price hikes, changed its royalty model, and picked up big podcast deals. The company reported a record profit in its most recent quarterly earnings report this summer.
Wells Fargo analyst Steven Cahall said Spotify “continues to demonstrate success on long-term margin expansion,” in a note to investors on Monday.
Spotify reports third quarter earnings on Nov. 12, and analysts expect adjusted earnings per share to rise over 400% to $1.82 and revenue to jump 19% to $4.4 billion, according to Bloomberg consensus estimates. Wall Street analysts covering the stock see the share price rising to $410 over the next 12 months on average, according to Bloomberg data.
Today at 1:31 PM UTC
Stocks gain with Big Tech earnings week ahead
Stocks opened higher on Monday to start a pivotal week packed with Big Tech earnings, an inflation update, and a crucial monthly jobs report.
The tech-heavy Nasdaq Composite (^IXIC) jumped roughly 0.7%, while the S&P 500 (^GSPC) rose 0.5%. The Dow Jones Industrial Average (^DJI) also moved up about 0.5%.
Oil slid nearly 6% after Israel’s retaliatory strikes on Iran spared the country’s crude infrastructure. Brent (BZ=F) hovered near $71 a barrel while West Texas Intermediate (CL=F) traded near $67 in early trading.
Investors await earnings from Alphabet (GOOGL, GOOG), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta (META) this week.
The monthly inflation print and jobs report for September are also due out this week.
Today at 1:16 PM UTC
Boeing offers nearly $19 billion share sale to shore up balance sheet, avoid downgrade
Boeing stock (BA) ticked slightly lower in premarket after the plane maker launched an almost $19 billion share sale in a move to shore up its liquidity and avoid a credit downgrade.
The company plans to sell about 90 million common shares and about $5 billion of depositary shares. Wall Street analysts had widely expected a large offering after a difficult year for the plane maker.
S&P Global recently placed Boeing on CreditWatch Negative, which increased the likelihood of a downgrade if the machinist union strike at the company continues until the end of the year.
Last week, a majority of workers rejected the latest labor contract proposal from Boeing. Earlier this month, the jet manufacturer said it would cut about 17,000 jobs, or 10% of its workforce.
As of Sept. 30, Boeing had $56.9 billion in outstanding senior unsecured indebtedness, according to a company filing.
Today at 12:14 PM UTC
Good morning. Here’s what’s happening today.
Today at 11:42 AM UTC
Oil tanks 5% as Israeli strike against Iran spares crude infrastructure
Oil plummeted more than 5% after expected Israeli retaliatory strikes against Iran over the weekend spared the country’s petroleum infrastructure.
West Texas Intermediate (CL=F) tumbled to hover below $68 while Brent (BZ=F), the international benchmark, slid to trade below $72 a barrel.
Tel Aviv’s attack against Iranian military facilities early Saturday was in response to Tehran’s missile strikes on Oct. 1.
Oil was volatile in the weeks preceding the retaliation with Brent touching $80 per barrel as traders speculated whether Israel would strike against Iran’s oil infrastructure. The White House advised against targeting the country’s oil or nuclear facilities.
