Stock market today: Dow holds near record with wave of earnings ahead
The stock market held steady on Monday, as investors anticipated a surge in corporate earnings this week.
Shortly after opening, the
Dow Jones Industrial Average
was down 18 points, or 0.1%, after the index climbed 73 points to a record high on Friday. The
– which remained near an all-time high set last week – has changed little, while the
increased by 0.2%.
“Futures are slightly higher after a quiet weekend and before the most important week of the earnings season,” wrote Tom Essaye, founder of Sevens Report Research.
This week, 164 constituents of the S&P 500 Index, including 10 of the 30 constituents of the Dow Jones, will release results. These include some of America’s biggest tech companies – Facebook (ticker: FB), Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), Amazon (AMZN) – alongside General Electric (GE), Boeing (BOE), General Motors (GM), Caterpillar (CAT), Exxon Mobil (XOM), Visa (V) and others.
Over the next two weeks, more than half of the index’s market cap will report earnings, according to Credit Suisse.
Investors took advantage of strong corporate earnings last week to help markets shed a funk that had weighed on stocks for much of the previous month. About 85% of S&P 500 companies that reported earnings beat Wall Street expectations, up from 76% on average over five years, according to Jim Reid, a strategist at Deutsche Bank.
The overall profit result on the S&P 500 exceeded expectations by 10%, according to Credit Suisse.
Overseas, Hong Kong
Hang Seng Index
ended just above the dish, and the one in London
was 0.3% higher.
All eyes will be on Facebook after the social media shares
(SNAP) fell 26.6% on Friday, putting pressure on Facebook stock, which fell 5.1%. Snap’s earnings showed a surprisingly large impact on its advertising business, blamed in part on the privacy changes Apple made to its mobile operating system. The same changes could hurt Facebook.
The gains are getting all the attention now, but they won’t be for long. The U.S. Federal Reserve’s monetary policy body, the Federal Open Market Committee (FOMC), will meet on November 2-3, when markets expect the central bank to announce that it will begin cutting its program of ‘monthly asset purchases. .
Here are six actions in motion Monday:
(TSLA) stock was up 5.1% after reports that
Hertz Global Holdings
(HTZZ) is looking to buy 100,000 Tesla electric vehicles.
(KMB) fell 4.6% after the company reported earnings of $ 1.62 per share, missing estimates of $ 1.65 per share, on sales of $ 5.01 billion, at- above expectations of $ 4.99 billion.
International restaurant brands
The stock (QSR) fell 1.7% after the company reported earnings of 76 cents per share, beating estimates of 74 cents per share, on revenue of $ 1.5 billion, below expectations of $ 1.52 billion.
The stock (FIVN) rose 1.6% after being overweight the sector weighting at KeyBanc Capital Markets.
(PYPL) was 4.7% higher after the payments giant said over the weekend that it would not pursue the acquisition of the social network Pinterest (PINS).
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