U.S. stock markets showed mixed results with the Dow Jones Industrial Average slightly down and the Nasdaq and S&P 500 indices rising. Investors are preparing for earnings reports from major tech companies such as Alphabet (GOOGL, Financial) and AMD (AMD). The market is also attentive to key economic data that could influence the Federal Reserve's next interest rate decision and the upcoming U.S. presidential election.
The Dow Jones slipped by 63.82 points or 0.15%, closing at 42,323.75. The Nasdaq gained 155.15 points, or 0.84%, to reach 18,722.34, and the S&P 500 rose by 19.20 points, or 0.33%, closing at 5,842.72.
In the bond market, the yield on the 10-year U.S. Treasury increased by 5.2 basis points to 4.33%. Ford Motor Co. (F) saw a decline in its stock as its full-year guidance fell to the lower end of its previously set range. Meanwhile, VF Corp, the parent company of North Face, enjoyed a stock surge after reporting better-than-expected earnings.
Earnings season is in full swing, with key tech companies like Pfizer, McDonald's, Alphabet (GOOGL, Financial), AMD (AMD), Snap, Reddit, and Chipotle releasing their reports. Meta Platforms and Microsoft are set to report the following day, with Apple and Amazon to follow shortly.
Economic data revealed an increase in the U.S. trade deficit, widening to $108.2 billion from $94.2 billion. Imports rose by 3.8%, while exports fell by 2%. Retail inventories grew by 0.8%, reflecting changes in economic demand.
The U.S. consumer confidence index reached 108.7, the highest since January 2024, surpassing expectations of 99.5. However, job openings fell to a three-and-a-half-year low, indicating a decline in labor demand as companies wait for economic acceleration.
The U.S. presidential election is drawing near, with polls showing a tight race between Trump and Vice President Harris. Bitcoin rose above $71,000 for the first time since June, with investors viewing Trump as a cryptocurrency-supportive candidate. Surveys suggest Trump's election could boost both stock and cryptocurrency markets.
Fed Chairman Larry Fink predicts only one interest rate cut by year's end due to high embedded inflation. Meanwhile, mortgage rates remain high, pressuring the housing market and slowing price growth.
In corporate news, Tesla extended its 0% loan incentive to meet its delivery goal for Q4 2024. Microsoft and Google continue to dispute in the cloud market. Apple is progressing on its next-gen M5 chip and plans to use an Indian factory for iPhone 17 production.
Among earnings reports, Ford's Q3 profit fell over 25%, not meeting expectations, while Pfizer's revenue exceeded forecasts. PayPal reported higher-than-expected earnings per share, and Alibaba launched a comprehensive AI product.
