Finance

S&P 500 and Nasdaq gain, heralding a huge week for the markets

Published

1 month ago

July 29, 2024

S&P 500 and Nasdaq gain, heralding a huge week for the markets

U.S. stocks rose after temporarily turning negative on Monday, kicking off a big week filled with a Federal Reserve interest rate decision, the jobs report and Big Tech profits.

The Dow Jones Industrial Average (^IXIC) recovered earlier losses and hovered near the flatline after the blue chip index rose more than 650 points on Friday. The S&P 500 (^GSPC) gained 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.6%.

Stocks initially started the week well, after rising on Friday as investors welcomed a promising inflation outlook that reinforced expectations for rate cuts. But after a volatile series of sessions and a massive tech sell-off, surprises are in store that could test the fragile rally.

No action is expected from the Federal Reserve at the end of Wednesday’s meeting, despite signs that the U.S. economy and inflation have hit a sweet spot. Many on Wall Street see other reasons why the central bank should wait until September to act.

Read more: 32 charts that tell the story of today’s markets and economy

The July nonfarm payrolls report due Friday – expected to show cracks in the labor market – will factor into ex-post calculations on the timing and depth of 2024 rate cuts.

Looming gains this week from Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Meta (META) also have investors on alert, given the stock breakout that followed the first pair of “Magnificent Seven” results.

While they wait, investors will receive a barrage of quarterly results from more than 150 members of the S&P 500. McDonald’s (MCD) earnings missed across the board before the bell on Monday as consumers pulled back on spending.

Live8 updates

Mon Jul 29, 2024 12:45 EDT

Investors are betting that the Fed will use the July meeting to pave the way for a rate cut in September

Yahoo Finance’s Jennifer Schonberger reports:

Most Federal Reserve observers don’t expect the central bank to ease monetary policy this week in Washington, DC, but what they do expect is that policymakers will pave the way for a rate cut at their next meeting in September.

Fed officials have said they are moving closer to confidence that inflation will fall sustainably to the 2% target. They have also said they are paying more attention to rising unemployment, another sign that cuts are approaching.

But most Fed watchers say the central bank still needs some more time to get certainty, while also preparing markets for the major action to come.

“The pressure is mounting on them,” said former Kansas City Fed Chair Esther George. “I think they’re going to look very seriously at September. It seems like we’re reaching a time where that decision is more important and that’s why I feel more confident.”

Read more here.
Mon Jul 29, 2024 12:00 EDT

S&P 500 and Nasdaq climb back into green territory

Stocks rose Monday after briefly turning negative during the session.

The Dow Jones Industrial Average (^DJI) was little changed after falling more than 100 points in morning trading.

The S&P 500 (^GSPC) gained 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) climbed back into green territory, rising 0.2% after briefly turning negative.
Mon Jul 29, 2024 11:30 AM EDT

Starbucks expected to report weak sales as it encourages pearls and value plays

Yahoo Finance’s Brooke DiPalma reports:

Starbucks (SBUX) investors are being cautious ahead of Tuesday’s earnings report.

Shares are down nearly 28% from a year ago, when the coffee giant painted a picture of a resilient consumer with 10% sales growth. Now there are other expectations lurking.

According to Bloomberg consensus estimates, third-quarter revenue is expected to grow 0.37% to $9.20 billion. Adjusted earnings per share are expected to be $0.92, compared to $1.00 a year ago.

Read more here.
Mon Jul 29, 2024 11:27 AM EDT

Stocks erase session gains, Nasdaq turns negative

Stocks erased gains from earlier sessions and hovered below the flatline on Monday.

The Dow Jones Industrial Average (^DJI) lost about 100 points after initially opening higher. The S&P 500 (^GSPC) fell 0.1%, while the tech-heavy Nasdaq Composite (^IXIC) also fell below the flat after gaining as much as 0.9%.
Mon Jul 29, 2024 10:45 AM EDT

Bitcoin is hovering around $69,000 after Trump’s pro-crypto speech

Bitcoin (BTC-USD) traded near the $69,000 per token level on Monday after former President Donald Trump put forward a pro-crypto agenda at a bitcoin conference last weekend.

Trump was the keynote speaker at Bitcoin 2024 in Nashville, Tennessee on Saturday. The Republican presidential candidate said he plans to make the US the “cryptocurrency capital of the world” if he is elected in November. He also proposed the creation of a “national bitcoin stockpile.”

Read more here.
Mon Jul 29, 2024 10:00 AM EDT

McDonald’s shares are rising despite disappointing second-quarter earnings as consumers stop eating out

Shares of McDonald’s (MCD) rose Monday morning, recovering from an initial negative reaction when the market opened following the fast-food chain’s quarterly results.

Yahoo Finance’s Brooke DiPalma reports:

McDonald’s customers are tightening their belts again in the second quarter as they struggle to pay for their Big Mac.

On Monday morning, the company reported second-quarter earnings that missed Wall Street estimates for revenue, profit and store sales. This proves that even America’s most dominant fast food player is not immune to challenging macro conditions.

Read more here.

Shares of the fast-food chain initially opened lower but quickly recovered, rising as much as 3% in early trading.
Mon Jul 29, 2024 9:30am EDT

Stocks open higher, kicking off the big week on Wall Street

Stocks moved higher Monday to kick off a big week filled with a Federal Reserve interest rate decision, the jobs report and technology earnings.

The Dow Jones Industrial Average (^DJI) rose slightly after a recent rise of more than 650 points. The S&P 500 (^GSPC) rose about 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.5%.

The Federal Open Market Committee will hold its scheduled two-day meeting this week, with no rate hike expected by Federal Reserve officials on Wednesday. Most investors see that policymakers will wait until September to cut interest rates.

Big Tech earnings are expected this week, including from Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Meta (META).
Mon Jul 29, 2024 5:49 AM EDT

A morning graph that makes you think

And so begins an incredibly busy week for investors.

Investors are starting the week bruised by last week’s surprise tech sell-off, which may just be getting underway, Yahoo Finance’s Seana Smith reports.

RBC strategist Lori Calvasina puts some context around the technical glitch below.

The most popular stocks start to stagnate in July. (RBC)