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    • Nasdaq is rising, S&P 500 is trading at record highs and earnings are high
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    Nasdaq is rising, S&P 500 is trading at record highs and earnings are high

    Kathleen William Posted on

    U.S. stocks traded mixed on Monday but held near record highs as investors braced for the next set of earnings from major banks to test this rally and the chances of an economic “soft landing.”

    The S&P 500 (^GSPC) rose about 0.6% and headed for a new record after closing above 5,800 for the first time on Friday. The tech-heavy Nasdaq Composite (^IXIC) rose around 1%, while shares of Nvidia (NVDA) hit new highs with a gain of 2.2%. The Dow Jones Industrial Average (^DJI) slipped 0.2%.

    Results take center stage as the first full week begins with third quarter results. The course of the season is considered crucial for the stock rally as the bull market turns two years old.

    The Dow and S&P 500 capped a successful week with new records after earnings from JPMorgan Chase (JPM) and Wells Fargo (WFC) largely passed Wall Street's test. Investors continue to focus on large banks. The reports from Goldman Sachs (GS), Citi (C) and Bank of America (BAC) are due on Tuesday, Morgan Stanley (MS) will be published on Wednesday.

    At the same time, there remains uncertainty about whether the Federal Reserve will cut interest rates again. Some analysts argue that a favorable jobs report and data showing “sticky” consumer and wholesale inflation are an argument for not forgoing a rate cut in November. Retail sales data later in the week will feed into the debate over whether the economy has held up in the face of Fed policy – the preferred soft landing.

    Read more: What the Fed's interest rate cut means for bank accounts, CDs, loans and credit cards

    On the corporate front, Boeing (BA) shares fell nearly 3% amid questions about the troubled aircraft maker's future. The company, which posted record losses of $5 billion in the third quarter, has cut 17,000 jobs as a month-long strike ravages production.

    Elsewhere, Chinese stocks initially wobbled as investors seized on Beijing's latest stimulus promise, but they managed to rise and revive their recent historic rally.

    Live4 updates

    • Boeing loses more than 2% as plane maker plans to cut 10% of workforce, strike enters 5th week,

      Shares of Boeing (BA) fell more than 2% as investors question the future of the troubled aircraft maker amid job cuts and a strike that is now in its fifth week.

      On Friday, the company said it would cut 17,000 jobs, or about 10% of its workforce.

      “Beyond addressing our current environment, recovering our business requires difficult decisions and we must make structural changes to ensure we remain competitive and able to deliver to our customers over the long term,” CEO Kelly Ortberg said in a message to employees posted on Boeing website on Friday.

      An ongoing strike by Boeing's largest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly for the company on several fronts.

      S&P Global estimated the cost of the strike, which began Sept. 1, at about $1 billion a month. Last week, talks between Boeing and IAM collapsed and the company withdrew its contract proposal.

    • Nvidia rises 2% and is close to the record

      Nvidia (NVDA) stock rose more than 2% at Monday's open, surpassing its June record high of $135.58.

      The stock was a few dollars away from its all-time intraday high just above $140.76.

    • S&P 500 hits new record, Dow slips as focus shifts to earnings

      Major averages opened mixed on Monday as investors focused on more bank profits and other quarterly results from major companies.

      The S&P 500 (^GSPC) rose around 0.3% to a new record. On Friday, the broader index closed above 5,800 for the first time

      The tech-heavy Nasdaq Composite (^IXIC) rose 0.5% on Monday, while the Dow Jones Industrial Average (^DJI) slipped 0.2% from its record close on Friday.

      Earnings season is in full swing this week. Citi (C), United Airlines (UAL), AI chip equipment maker ASML (ASML), Netflix (NFLX) and American Express (AXP) are expected to release their reports.

      Oil prices fell more than 2% as OPEC cut its demand forecast for 2024 and 2025. Traders also reacted to a lack of information from China's finance minister over the weekend on any major new stimulus spending.

    • Nvidia shares are aiming for a record high and top spot as the most valuable company ahead of Apple

      Nvidia shares rose 1% premarket to $136.22, putting the company on track to surpass its previous record closing price of $135.58 in June.

      The AI ​​chipmaker made significant gains in October following a massive $6.6 billion funding round for ChatGPT maker OpenAI, much of which will flow back to Nvidia. AI executives, including Nvidia CEO Jensen Huang, report huge demand for Nvidia's latest Blackwell chips. Nvidia shares are up 8% in the past week.

      Nvidia's gains also put the company on track to once again secure its place as the most valuable company in the world based on market capitalization. Nvidia is the second largest company in the world after Apple. The chipmaker's market cap was $3.3 trillion as of Monday, while Apple's was $3.46 trillion. Apple, Microsoft and Nvidia swapped places among the top three companies last year.

      Nvidia is scheduled to report earnings on November 19th. Wall Street analysts expect the company to report revenue of $33 billion, up 82% from a year earlier, according to Bloomberg consensus estimates. About 90% of Wall Street analysts covering the stock tracked by Bloomberg recommend buying Nvidia shares.

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    Kathleen William
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