US stocks closed mostly flat on Monday to kick off abig week filled with a Federal Reserve rate decision, the jobs report, and Big Tech earnings.
The Dow Jones Industrial Average (^IXIC) closed down 0.1%, coming off asurge of over 650 points for the blue-chip index on Friday. The S&P 500 (^GSPC) gained nearly 0.1% while the tech-heavy Nasdaq Composite (^IXIC) rose just above the flatline.
Stocks kicked off the week on the front foot after surging on Friday, as investors welcomed a promising inflation reading that cemented bets for interest-rate cuts. But after a volatile run of sessions and a huge tech sell-off, the watch is on for surprises that could put the fragile rally to the test.
No move is expected from the Federal Reserve at the end of its meeting on Wednesday, despite signs the US economy and inflation have hit a sweet spot. Many on Wall Street see other reasons for the central bank to wait until September to act.
The July nonfarm payrolls report that follows on Friday — expected to show cracks in the jobs market — will play into after-the-fact calculations on timing and depth of rate cuts in 2024.
Looming earnings this week from Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta (META) also have investors on alert, given the stock wipeout that followed the first pair of "Magnificent Seven" results.
On Monday shares of EV giant Tesla (TSLA) gained more than 5% after Morgan Stanley's Adam Jonas designated the stock a 'top pick.' McDonald's (MCD) stock rose despite an earnings miss across the board as consumers pulled back on spending at the fast food chain.
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Stocks end session mixed ahead of big week for markets
US stocks ended the session mixed on Monday, kicking off abig weekon Wall Street amid a Federal Reserve rate decision, the jobs report, and Big Tech earnings.
The Dow Jones Industrial Average (^IXIC) fell 0.1% aftersoaring over 650 points on Friday. The S&P 500 (^GSPC) gained 0.1% while the tech-heavy Nasdaq Composite (^IXIC) rose almost 0.1%.
Among Monday's big movers, Tesla (TSLA) shares gained more than 5% after a bullish callfrom Morgan Stanley. McDonald's (MCD) stock rose more than 3% despite an earnings miss across the board as consumers pulled back on spending at the fast food chain.
Investors will hear from a slew of Big Tech heavyweights this week, starting with Microsoft (MSFT) which is set to report on Tuesday after the closing bell. Apple (AAPL), Amazon (AMZN), and Meta (META) will release their quarterly results later this week.
On Wednesday afternoon Federal Reserve officials will announce their interest rate decision after their two-day meeting. Investors widely expect the central banks to set the stage for a September rate cut.
The July jobs report will be released on Friday.
Mon, July 29, 2024 at 8:35 PM GMT+1
Lamborghini bucks softness in luxury market with record first-half results
Yahoo Finance's Pras Subramanian reports:
Italian luxury automaker Lamborghini delivered stellar results in the first half of 2024 despite a subdued selling environment for high-end automobiles and luxury goods in general.
Lamborghini, part of Volkswagen's (VWAGY) Audi Group that includes Audi, Lamborghini, Ducati, and Bentley, reported record revenue of 1.6 billion euros ($1.762 billion) for the first six months of 2024, a 14.1% jump from a year ago. Operating profit hit another record of 458 million euros ($495 million).
Lamborghini delivered 5,558 cars in the first half, another all-time high, powered by sales of the Revuelto hybrid supercar, outgoing Huracán two-seater, and the Urus SUV that now comes in hybrid SE trim.
Read more here.
Mon, July 29, 2024 at 8:00 PM GMT+1
Tesla jumps more than 5% on bullish call from Morgan Stanley
Tesla (TSLA) stock gained more than 5% on Monday following a bullish callfrom Morgan Stanley's Adam Jonas.
The analyst designated the electric vehicle maker as a top pick, citing Tesla's potential to generate positive cash flow after implementing cost-cutting and restructuring measures.
Tesla shares rallied for much of June but started to show signs of pullback earlier this month. The stock tanked more than 12% in one session last week after the company posted mixed second quarter results revealing growth this year would be "notably lower" than what it saw in 2023.
Mon, July 29, 2024 at 7:20 PM GMT+1
Apple gives developers first taste of Apple Intelligence with iOS 18.1 developer beta
Yahoo Finance's Dan Howley reports:
Apple (AAPL) is giving developers an early look at its upcoming Apple Intelligence AI platform with the release of its latest developer betas for iOS, iPadOS, and MacOS on Monday. The betas, called iOS 18.1, iPadOS 18.1, and macOS Sequoia, are the first to include Apple’s highly anticipated Apple Intelligence software, which the company debuted at its Worldwide Developer Conference (WWDC) in June.
Apple’s developer beta program gives app creators access to upcoming versions of the company’s software to test it and incorporate its features into their own apps. Apple also releases public betas for regular users to try its latest software offerings before making them generally available in the fall.
Read more here.
Mon, July 29, 2024 at 6:39 PM GMT+1
Trending tickers Monday
McDonald's (MCD)
McDonald's shares soared more than 4% on Monday despitethe company's Q2 earnings missas customers pulled back on dining out.
"Consumers are more discriminating with their spend," CEO Chris Kempczinski said in the earnings release.
ON Semiconductor (ON)
The chip company reported second quarter earnings topped analyst estimates and its Q3 guidance is about in line with Wall Street expectations.
ON Semiconductor soared more than 12% during Monday's session.
Bitcoin (BTC-USD)
The cryptocurrency climbed above $69,000 before paring gains on Monday after Republican presidential candidate Donald Trump spoke at a bitcoin conference in Nashvilleover the weekend.
Trump promised pro-crypto initiatives, including the establishment of a "strategic national bitcoin stockpile."
Mon, July 29, 2024 at 5:45 PM GMT+1
Investors are betting the Fed will use its July meeting to set the stage for a September cut
Yahoo Finance's Jennifer Schonberger reports:
Most Federal Reserve watchers don’t expect the central bank to ease monetary policy this week in Washington, D.C., but what they do expect is that policymakers will set the stagefor an interest rate cut at their next meeting in September.
Fed officials have said they are getting closer to having confidence inflation is sustainably dropping to their 2% goal. They have also said they are paying more attention to rising unemployment, another sign that cuts may be nearing.
But most Fed watchers say the central bank still needs just a bit more time to be sure, while also preparing the markets for the significant action to come.
"The pressure is growing for them," said former Kansas City Fed president Esther George. "I think that they are going to look at September very seriously. It’s looking to me like we are coming to a time where that decision is more important and it's why I'm more confident."
Read more here.
Mon, July 29, 2024 at 5:00 PM GMT+1
S&P 500, Nasdaq climb back into green territory
Stocks rose on 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 to rise 0.2% after briefly turning negative.
Mon, July 29, 2024 at 4:30 PM GMT+1
Starbucks expected to report weak sales as it pushes popping pearls and value plays
Yahoo Finance's Brooke DiPalma reports:
Starbucks (SBUX) investors are cautious ahead of its Tuesday earnings report.
Its shares are down nearly 28% compared to a year ago, when the coffee giant painted a picture of a resilient consumer with 10% sales growth. Now, different expectations are on tap.
Q3 revenue is expected to grow 0.37% to $9.20 billion, per Bloomberg consensus estimates. Adjusted earnings per share are expected to be $0.92, compared to $1.00 a year ago.
Read more here.
Mon, July 29, 2024 at 4:27 PM GMT+1
Stocks erase session gains, Nasdaq turns negative
Stocks erased earlier session gains to hover below the flatline on Monday.
The Dow Jones Industrial Average (^DJI) lost roughly 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 flatline after gaining as much as 0.9%.
Mon, July 29, 2024 at 3:45 PM GMT+1
Bitcoin hovers near $69,000 following Trump pro-crypto speech
Bitcoin (BTC-USD) traded near the $69,000 per token level on Monday after former President Donald Trump pushed a pro-crypto agenda at a bitcoin conference over the weekend.
Trump was the keynote speaker at Bitcoin 2024 on Saturday in Nashville The Republican presidential candidate said he plans to make the US the "cryptocurrency capital of the world" if elected in November. He also proposed the creation of a “national bitcoin stockpile.”
Read more here.
Mon, July 29, 2024 at 3:00 PM GMT+1
McDonald's stock rises despite Q2 earnings miss as consumers pull back on dining out
McDonald's (MCD) shares rose on Monday morning, recovering from an initial negative reaction at the market open following the fast food chain's quarterly results.
Yahoo Finance's Brooke DiPalmareports:
McDonald's customers are tightening their belts again in Q2, as they grapple with paying up for their Big Mac.
On Monday morning, the company reported Q2 earnings that missed Wall Street estimates across revenue, earnings, and same-store sales, proving not even America's most dominant fast food player is immune to the challenging macro conditions.
Read more here.
Shares of the fast food chain initially opened lower, but quickly recovered to gain as much as 3% in early trading.
Mon, July 29, 2024 at 2:30 PM GMT+1
Stocks open higher to kick off big week on Wall Street
Stocks stepped higher on Monday to kick off abig week filled with a Federal Reserve rate decision, the jobs report, and tech earnings.
The Dow Jones Industrial Average (^DJI) moved up slightly, coming off arecent surge of over 650 points. The S&P 500 (^GSPC) added 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 move expected by Federal Reserve officials on Wednesday. Most investors see policymakers waiting until September to cut interest rates.
Big Tech earnings are due this week, including from Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META).
Mon, July 29, 2024 at 10:49 AM GMT+1
A morning chart to leave you thinking
And so begins an insanely busy week for investors.
Investors start the week bruised by the surprise tech sell-off last week, which may just be getting going, reports Yahoo Finance's Seana Smith.
RBC strategist Lori Calvasina puts some context around the tech stall-out below.
The hottest stocks begin to stall in July. (RBC)
