U.S. stocks rose on Tuesday as investors cheered a rebound in tech stocks and a rebound from a sharp rise in oil prices, with renewed focus on interest rates and the state of the U.S. economy.
The Nasdaq Composite Index (^IXIC) rose about 1.2% as the tech giant recouped some of its losses from the previous session. The benchmark S&P 500 (^GSPC) rose about 0.7%, and the Dow Jones Industrial Average (^DJI) rose about 0.2%.
Stocks are expected to resume the upward trend of recent months as Monday’s headwinds ease and oil prices fall as tensions in the Middle East ease some.
China’s failure to roll out another massive stimulus package on Tuesday also put pressure on oil prices, a surprise to investors who had hoped for further fuel to an unprecedented rally. Ta. Hong Kong stocks (^HSI) fell more than 9% as a torrid rally in Chinese stocks fueled by economic stimulus faded.
Some of the Magnificent Seven stocks regained ground lost amid negative headlines, with Amazon (AMZN), Apple (AAPL), and Alphabet (GOOG, GOOGL) all rising. Meanwhile, Nvidia (NVDA) closed the session with gains, rising another 4% on Tuesday as the chip giant’s partner Honghai cited “extraordinary” AI demand.
Investors also focused on Fed policy, as market hopes for a huge rate cut remained dashed.
New York Fed President John Williams told the Financial Times on Tuesday that the Fed’s policy is “well positioned” to ensure a “soft landing” for the economy. Meanwhile, Federal Reserve President Adriana Kugler said data will continue to drive interest rate decisions.
Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans, and Credit Cards
Those comments have turned investors’ attention to Thursday’s Consumer Price Index (CPI) inflation report, which could provide further clues about the future direction of interest rates. It turns out.
On the corporate front, PepsiCo (PEP) had a strong earnings season, posting an unexpected decline in quarterly sales and lowering its 2024 sales growth forecast. The snack and beverage giant’s stock rose slightly in afternoon trading.
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Tuesday, October 8, 2024 11:50 a.m. (Pacific Daylight Time)
DJT stock expands its rise
Trump Media & Technology Group stock (DJT) rose another 13% on Tuesday after closing more than 10% higher on Monday.
The move comes as investors evaluate current vice president and Democratic candidate Kamala Harris’ recent media appearances and Elon Musk’s surprise cameo at Donald Trump’s rally in Butler, Pennsylvania, over the weekend. It happened while I was there. It was the same location where the former president survived an assassination attempt in July.
Musk, a tech billionaire who is CEO of Tesla (TSLA) and SpaceX and owner of social media platform X (formerly Twitter), has turned to Trump ahead of next month’s election. He has openly expressed his support for the
The former president remains in a close race with Harris, who has just begun making a spate of media appearances in an effort to consolidate her momentum in recent polls.
Harris appeared on an episode of the popular Gen Z podcast “Call Her Daddy,” along with a sit-down interview on CBS’ “60 Minutes.”
In a one-on-one interview with CBS correspondent Bill Whitaker, Harris defended her proposals on the economy and immigration, but was pressed about how she would fund some of those efforts.
The network said President Trump declined an interview on the show last week after agreeing to the sit-in in advance.
Click here for details.
Tuesday, October 8, 2024 10:45 a.m. (Pacific Daylight Time)
Sector check: Technology leads, energy lags
Technology (XLK) and Consumer Discretionary (XLY) led the sector moves on Tuesday, rising about 1.4% and 0.8%, respectively.
Tech mega-cap stocks led by Nvidia (NVDA) pushed the market higher to recoup some of the losses from the previous session, with the Nasdaq Composite Index (^IXIC) rising more than 1%. Nvidia shares rose as much as 4%, hitting their highest intraday price since July, on the back of increased sentiment surrounding Blackwell chips.
Energy was the biggest laggard of the day, as crude oil (CL=F) fell about 4% to trade at just over $74 a barrel. The decline came as oil prices took a lull in recent increases due to continued conflict in the Middle East, while China disappointed with further economic stimulus. Brent (BZ=F), the international benchmark price, also fell by 4% and remains above $77.50.
(Provided by: Yahoo Finance)
Tuesday, October 8, 2024 10:00 a.m. (Pacific Daylight Time)
Why is the market reaction so slow this earnings season?
When some of Japan’s major banks announce their quarterly results on Friday, the third quarterly earnings reporting period will begin in earnest.
Wall Street expects profits to rise 4.7%, marking the fifth consecutive quarter of increase from a year ago. However, compared to the same period last year, this will be the slowest growth since the fourth quarter of 2023.
Binky Chadha, chief equity strategist at Deutsche Bank, said the S&P 500 Index (^GSPC) has fallen by a typical 2% in the first four weeks of reporting, given that stock prices between reporting periods were higher than usual. I don’t expect it to rise.
“Earnings season is typically positive for stock prices, but market reaction has been muted due to strong gains and sustained above-average positions,” Chadha said in a note to clients.
Click here for details.
Tuesday, October 8, 2024 9:10 a.m. (Pacific Daylight Time)
Chinese stock rally loses momentum as hopes for economic stimulus fade
The recent surge in Chinese stocks hit the pause button on Tuesday after the Chinese government failed to roll out another massive stimulus package, hoping to further fuel an unprecedented rally. It was a surprise to investors.
Hong Kong’s benchmark Hang Seng Index (^HSI), which includes many large-cap Chinese stocks, fell about 9% on Tuesday, the first since October 2008, after rising about 20% last month in response to China’s tough policy measures. It was the worst day ever. The most aggressive financial stimulus since the pandemic.
China’s benchmark CSI 300 (000300.SS) also had a volatile day after the market reopened from the country’s week-long holiday, with hopes of a big stimulus announcement accelerating an initial 10% rise. It became. The index then gave up those gains and ended the day with a more modest 6% gain.
The stimulus package, China’s response to trying to get its sluggish economy back on track, was first announced on September 24. Since then, a surge in capital inflows has driven Chinese stocks, particularly in real estate and consumer staples, up dramatically as investors bet on a resurgence of the Chinese government. .
At a press conference on Tuesday hosted by China’s top economic planner, the National Development and Reform Commission (NDRC), the Chinese government announced further support to achieve its economic goals, including “an annual growth target of about 5%.” He said he is working hard to implement it. . ”
On Tuesday, Shanghai Composite (000888.SS) was still up about 5% after initially rising about 10% after the market resumed from a week-long holiday. The index rose by double digits and is up more than 20% from its September low. It has increased about 30% in the past month.
Similarly, shares of Chinese e-commerce giants such as Alibaba (BABA) and PDD Holdings (PDD) rose more than 35% and 55%, respectively, during the same period, despite single-digit losses on Tuesday.
Learn more about what this means for investors here.
(Provided by: Yahoo Finance)
Tuesday, October 8, 2024 8:25 a.m. PDT
Rising tensions between Israel and Iran pause, China’s stimulus is disappointing and oil tanks 4%
Oil fell on Tuesday as China disappointed investors with its stimulus package, easing a recent rally sparked by Middle East conflicts.
West Texas Intermediate (CL=F) fell more than 4.5%, and international benchmark price Brent Crude Oil (BZ=F) also fell more than 4.5%.
The reversal follows speculation that Iranian oil infrastructure could be targeted in retaliation from Tel Aviv to Tehran in the ongoing Middle East conflict, with crude oil futures up about 12% in the past five sessions. It happened after rising.
“Delays in responding to Israeli counterattacks mean further talks may take place first,” Dennis Kistler, senior vice president of trading at BOK Financial Securities, said in a note Tuesday. “I am doing so,” he said.
“Oil futures are moving into an ‘overbought’ state, and barring any underlying attack escalation, a correctional phase appears to be underway,” he added.
A Chinese economic planner also told reporters that China was “fully confident” of achieving its 2024 target, but did not mention any major new measures. In addition, the world’s largest oil importing country suggested that demand would stagnate, putting pressure on the oil market.
Tuesday, October 8, 2024 7:35 a.m. (Pacific Daylight Time)
Apple iPhone 16 spending is ‘more positive’ than expected, but concerns remain: KeyBanc
Apple’s iPhone 16 (AAPL) may have had more immediate momentum than its predecessor, according to analysts at KeyBanc. However, it is not enough to eliminate concerns about overall sales.
KeyBanc analysts said in a note Tuesday that spending on the iPhone 16 during the first 10 days after its release in September was 12% higher than during the same period after the iPhone 15’s launch.
KeyBanc drew its conclusions based on data from nearly 2 million KeyBank credit and debit card customers who examined Apple transactions over $400.
KeyBanc said the data “looks more positive than we expected.” However, analysts said that demand for the iPhone 16 quickly waned: “While we saw strong initial demand for the iPhone 16, momentum has slowed.”
“While this data should allay concerns about the September quarter, it is unlikely to change our more cautious view of a ‘supercycle’ as upgrade rates are likely to continue to decline.”
So far, Wall Street has perceived the iPhone 16 launch to be a bit weak. Analysts cited faster shipping times for the iPhone 16 than previous iPhones. In other words, if people wait less to get a new iPhone, demand should weaken.
Tuesday, October 8, 2024 06:31 PDT
Stock prices rise, crude oil declines
U.S. stocks opened higher on Tuesday after all three major indexes closed in the red on Monday.
The benchmark S&P 500 Index (^GSPC) and the tech-heavy Nasdaq Composite Index (^IXIC) each rose about 0.5%, and the Dow Jones Industrial Average (^DJI) rose about 0.3%.
Oil prices, which had soared amid tensions in the Middle East, fell back early on Tuesday. Crude oil (CL=F) fell about 3% to trade just below $75 a barrel.
Tuesday, October 8, 2024 5:50 a.m. (PDT)
PepsiCo lowers sales forecast for 2024 due to delays in snack business
PepsiCo (PEP) has lowered its sales forecast for this year, expecting organic revenue growth to be in the low single digits, lower than the previously expected 4% increase. As Yahoo Finance’s Brooke DiPalma reports, PepsiCo’s third-quarter revenue fell short of Wall Street expectations, coming in at $23.3 billion, compared to expectations of $23.8 billion.
CEO Ramon Laguarta said in a release that Pepsi’s performance was affected by “weak category performance in North America,” the impact of the Quaker Foods North America recall, and “geopolitical tensions in certain international markets.” The company stated that the company’s business was affected by business disruptions due to the “increasing demand for financial services.” In a phone interview with Yahoo Finance, Laguarta said consumers are facing “very difficult times” and making “a lot of trade-offs” when it comes to food. Laguarta explained that these trade-offs are affecting the snack industry most severely.
PepsiCo shares fell nearly 1% in premarket trading. Read the full text here.
