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Stocks rebound in view of Big Tech profits

i2wtcBy No Comments7 Mins Read


U.S. stocks were on track to recover from their worst week of the year on Monday as investors braced for a flood of corporate profits.

The S&P 500 (^GSPC) rose 0.5% on Friday after closing below the 5,000 level for the first time since February amid six straight days of declines. The Dow Jones Industrial Average (^DJI) rose 0.3%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose 0.5%.

After the recent selloff, the market’s bull run has sunk to its weakest point in months, and this week will be crucial in determining whether that slump continues.

Tech stocks are looking to recover after Netflix’s (NFLX) lackluster earnings dragged down a broader market already facing geopolitical tensions. As the chances of a rate cut fade, there is growing skepticism that megacaps can continue to play a role in driving profits.

Expectations are now resting on the big tech companies’ earnings reports later this week, reassuring and reinvigorating the market. The deck features quarterly reports from Meta (META), Microsoft (MSFT), and Alphabet (GOOG).

The focus on Monday was Tesla (TSLA), with the EV maker cutting prices in the U.S., China and several other countries. Tesla will report its quarterly results after the market closes on Tuesday. Elon Musk’s company has already spooked some investors with its push for robot taxis and its decision to force shareholders to vote again on a pay package that Musk rejected. Shares were down more than 4% on Monday morning.

Meanwhile, debate over the Fed’s stance on rate cuts continued to rage after Chairman Jerome Powell and other policymakers took a more hawkish stance last week in the face of persistent inflation. Given this situation, people are already turning their attention to Friday’s release of the PCE index, the Fed’s preferred inflation measure, as important in assessing whether interest rates will remain high for a longer period of time. .

live6 updates

  • Bipartisan concern uniting Washington: Cheap Chinese products

    Yahoo Finance’s Ben Werschkul reports:

    Despite their differences, Joe Biden and Donald Trump share bipartisan concerns about China flooding global markets with cheap goods.

    President Biden’s recent request to triple tariffs on Chinese steel is just the latest example of how voters will have to make varying degrees of choice over China trade this fall, rather than a change in direction.

    Both sides are increasingly aligned in support of protectionist plans.

    Mr. Biden has called for increased tariffs on some sectors from China. President Trump is calling for 60% tariffs across the board. Mr. Biden aims to “de-risk” relations with China, and Mr. Trump speaks of “decoupling” the world’s two largest economies.

    Much of the reason the United States is paying attention to this issue, of course, is the ongoing debate over the proposed $14 billion sale of US Steel (X) to Japanese giant Nippon Steel. Both Mr. Biden and Mr. Trump oppose the deal, creating another front in which the usual partisan coalition is disrupted.

    Please see here for the detail.

  • Nasdaq remains flat with big tech stocks mixed

    The Nasdaq Composite Index (^IXIC) briefly fell below the flatline on Monday after rising as much as 0.9% in early trading.

    The tech-heavy index attempted to rebound after falling more than 2% on Friday. Nvidia (NVDA) stock pared previous gains and rose more than 1.5%. AI darling fell 10% on Friday.

    Tesla (TSLA) stock fell more than 4% after the electric car maker cut vehicle prices in China. Tesla is scheduled to report earnings after the closing bell on Tuesday. Monday was Tesla’s seventh straight decline.

    META stock fell more than 1% as investors awaited the social media giant’s earnings release later this week. The stock price of software giant Microsoft (MSFT) also fell slightly.

    Amazon (AMZN), Alphabet (GOOGL), and Apple (AAPL) all rose slightly.

  • Gold falls 2% as fears of broader Middle East conflict ease

    Gold (GC=F) fell more than 2% as fears of widespread war in the Middle East receded.

    George Cooley, CFI’s global head of education and research, said: “Today’s gold market experienced a significant decline as concerns over escalating conflict in the Middle East eased and investors’ need to seek safe haven assets such as gold diminished. I did,” he said. Monday.

    “However, geopolitical concerns may continue to be a key driver for gold,” he added.

    Last week, Israel attacked Iran in retaliation for attacks on Israeli government targets by Tehran. The damage appears to have been limited and contained in both countries.

    Gold prices have risen for five consecutive weeks, hitting a record high of over $2,400 an ounce in April.

    Futures prices were hovering around $2,350 an ounce on Monday.

  • Nvidia stock rebounds 3%, Tesla stock decline widens

    Nvidia (NVDA) stock led the big tech rally on Monday as the broader market tried to recover from last week’s decline.

    Nvidia rose more than 3% on Friday after falling 10% as a sell-off in technology stocks led to sharp declines in the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC).

    On Monday, the S&P 500 rose 0.5%, trying to end a six-day losing streak.

    Meanwhile, Tesla (TSLA) stock was down about 2% at around 10 a.m. ET as investors reacted to the EV maker’s lower prices for its vehicles in China. Monday was Tesla’s seventh straight decline.

  • Stock prices try to recover ahead of Big Tech earnings

    Stocks opened higher on Monday after the worst week of the year as investors waited for a flood of profits.

    The S&P 500 (^GSPC) rose 0.5%, climbing back above the 5,000 level. The Dow Jones Industrial Average (^DJI) also rose 0.5%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose 0.6%.

    Tech stocks were on track to recover from Friday’s plunge on lackluster earnings for Netflix (NFLX) and a 10% drop in stock price for AI darling Nvidia (NVDA)

    The focus Monday was on Tesla (TSLA), with the EV maker announcing price cuts in the U.S., China and several other countries. The company’s stock price fell more than 4% in early trading. Tesla will report its quarterly results after the market closes on Tuesday.

    Other highly anticipated quarterly results this week include Meta (META), Microsoft (MSFT), and Alphabet (GOOG).

  • A reminder about Friday’s assaulted Nvidia

    Tough session for Nvidia (NVDA) on Friday — the stock dropped 10%!

    The stock is currently down 25% from its March 25 high.

    No one knows if this is the bottom, as the entire AI industry is under pressure amid more cautious sentiment.

    But what I do know is that Nvidia is fundamentally strong and will likely be protected by the market soon due to the selloff.

    Evercore ISI’s Mark Lipacis makes a good point in a new note highlighting that point.

    “Investors need to understand that 1) the importance of the chip + hardware + software ecosystem that Nvidia has built, and 2) that the computing era will last 15 to 20 years and will typically be dominated by a single vertically integrated ecosystem company. We believe that the revenue is an underestimate as it is measured in units of 1000.

    And Jay Woods, chief global strategist at Freedom Capital, made another good point about the NVIDIA sale in his first bid this morning (episode below).

    “These things happen and people get emotional about this stock, but for those who are waiting for a stock decline that keeps crushing stocks in each earnings cycle and in the hottest areas, this stock is a good buy. I think it’s a great opportunity to step into the water. “

    Watch Yahoo Finance’s new Vodcast, Open Bid, Mondays and Fridays at 8 a.m. ET on Yahoo Finance, YouTube, and podcast platforms Spotify and Apple Music.



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