U.S. stock markets opened with mixed results as investors brace for key earnings reports from major tech companies like Alphabet (GOOGL, Financial) and AMD (AMD). Rising U.S. Treasury yields are influencing market movements, alongside crucial economic data and the upcoming U.S. presidential election.
The Dow Jones Industrial Average fell by 168.33 points, or 0.40%, to 42,219.24, while the Nasdaq Composite inched up by 5.13 points, or 0.03%, to 18,572.31. The S&P 500 declined by 8.27 points, or 0.14%, to 5,815.25.
Ford (F) shares declined after the company provided an annual performance forecast at the lower end of its previously set range. Conversely, VF Corp, parent company of North Face, saw its stock surge due to better-than-expected earnings.
This week marks the busiest period for U.S. tech earnings, with Wall Street focused on reports from leading tech giants. Companies reporting include Pfizer, McDonald's, Alphabet (GOOGL, Financial), AMD (AMD), Snap, Reddit, and Chipotle, with Meta Platforms and Microsoft (MSFT) scheduled for the following day, and Apple (AAPL) and Amazon on subsequent days.
The U.S. Commerce Department reported the September goods trade deficit widened from $94.2 billion in the previous month to $108.2 billion, against economists' median forecast of $96 billion. Imports climbed 3.8%, while exports dropped 2%.
The U.S. presidential election looms, with markets assessing the potential return of former President Trump. Market surveys suggest that a Trump victory might bolster stocks and cryptocurrencies like Bitcoin, which recently surpassed $71,000, as he is perceived as more favorable to digital currencies.
Rayliant Global Advisors' Phillip Wool indicated that increased chances for Trump could benefit U.S. stock markets short-term. However, Temasek warned that a Trump win might slow global economic growth, ultimately affecting U.S. businesses.
As the Fed deliberates on interest rate changes, data indicates that U.S. economic fundamentals remain strong, albeit with temporary employment fluctuations.
Nvidia (NVDA) remains a focal point in AI discussions, with industry experts suggesting the market may have overvalued the company's short-term potential while underestimating its long-term promise.
Tesla (TSLA) has extended its 0% loan incentive to meet its ambitious Q4 2024 delivery target of over 515,000 vehicles, the highest in its history. Barclays has raised Tesla's price target from $220 to $235.
In the cloud market, Microsoft (MSFT) accused Google of undermining its efforts through covert campaigns.
Apple (AAPL) is investing in its next-gen M5 chip and will begin manufacturing the basic iPhone 17 model in India next year.
Ford's (F) third-quarter net profit fell over 25%, prompting a downward revision of its full-year earnings forecast. Pfizer outperformed revenue expectations for the third quarter.
PayPal exceeded market predictions with Q3 adjusted earnings per share of $1.20. Alibaba's international platform launched its first full-process AI product, while cryptocurrency-related stocks experienced a collective uplift.
