Stocks slipped on Monday as the 10-year Treasury yield rose and investors braced for a packed week of top-tier earnings that could drive or drag on a record-setting rally.
The S&P 500 (^GSPC) dropped almost 0.3%, coming off a fresh all-time closing high and a sixth weekly win in a row. The Dow Jones Industrial Average (^DJI) edged almost 0.7% lower, while the tech-heavy Nasdaq Composite (^IXIC) hovered near the flatline.
AI chip heavyweight Nvidia (NVDA) briefly touched an intraday record during the session while iPhone maker Apple (AAPL) was on pace to eke out a closing high if its modest gains hold.
Whether records keep rolling in rides in large part on corporate results in the coming days. Earnings season ramps up this week, as over 100 S&P 500 companies are lined up to report. So far, 80% of third quarter updates from those on the benchmark have topped the mark.
Investors are on edge for Tesla’s (TSLA) report on Wednesday, after its robotaxi unveiling fell short of expectations. The EV maker is the highlight of the week amid questions about Big Tech performance, even after Netflix’s (NFLX) strong kickoff to the megacap season.
General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big hitters on the earnings docket this week.
Boeing (BA) faces a double-whammy on Wednesday, when it’s expected to release earnings at the same time workers vote on whether to accept a tentative deal agreed with the union to end a five-week strike. Shares of the plane maker rose over 3% in early Monday trading.
Meanwhile, the 10-year Treasury yield (^TNX) climbed over 6 basis points to 4.136%, the highest level since the end of July.
Oil prices rose as much as 2% alongside gains for Chinese stocks (000300.SS) as China’s stimulus push continued with a cut to key lending rates. Global benchmark Brent futures (BZ=F) traded near $74 a barrel, while West Texas Intermediate (CL=F) crude futures topped $70, with Israel’s next Iran move also in focus.
Live10 updates
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GM Q3 earnings preview: What to watch
Pras Subramanian reports:
Investors are expecting more upbeat results from GM (GM) when the automaker reports earnings on Tuesday after the company raised its guidance for a second time earlier this year on the back of decent US sales. Questions around GM’s EV business and inventory management, however, will be in focus.
For the third quarter, GM is expected to report revenue of $44.69 billion per Bloomberg consensus, sequentially lower than last quarter’s nearly $48 billion, but to be expected given the second quarter’s historically strong sales. GM’s Q3 revenue is expected to be higher than a year ago.
Read more here.
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Netflix hits fresh daily high
Netflix (NFLX) shares hit all-time highs on Monday, extending gains from last week when the streaming giant posted a better-than-expected quarterly print.
The stock briefly touched a new high of $773 during the session before paring gains.
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Gold hits record, silver jumps to 52-week high as precious metals outperform broader markets
Gold and silver gains show no sign of slowing down as investors continue to pour into precious metals.
Gold futures (CG=F) rose 0.8% on Monday to touch an intraday high above $2,750 per ounce. Silver futures (SI=F) gained more than 3% to briefly top $34 per ounce, a 12-year high.
Both metals have outperformed the broader markets. Gold bullion is up roughly 26% and silver has risen nearly 35% since the start of 2024, compared with the S&P 500’s (^GSPC) gain of 19%.
Central banks have been buying up the yellow metal, and investors have been increasingly entering physically backed gold ETFs amid expectations of lower interest rates.
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Disney board to announce Bob Iger successor in early 2026: ‘A critical priority’
Yahoo Finance’s Alexandra Canal reports:
Disney (DIS) plans to announce its next CEO in early 2026, the first timeline the company has publicly given for appointing a successor to current chief Bob Iger.
The media giant made the announcement on Monday while simultaneously revealing that current board member and former Morgan Stanley (MS) CEO James Gorman will serve as the board’s new chairman, effective Jan. 2, 2025. He will exit his role as executive chairman at Morgan Stanley on Dec. 31.
“A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026,” Gorman said in a press release. “This timing reflects the progress the Succession Planning Committee and the Board are making, and will allow ample time for a successful transition before the conclusion of Bob Iger’s contract in December 2026.”
Read more here.
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Apple on pace to close at fresh record high
Apple’s (AAPL) stock was on pace to eke out a new high on Monday after closing at a record on Friday.
Shares of the iPhone maker rose slightly to hover near $235.80 each.
On Friday, the stock closed at a record $235. Year to date, Apple is up more than 22%.
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Fed’s Logan doubles down on strategy of lowering rates ‘gradually’
Yahoo Finance’s Jennifer Schonberger reports:
Dallas Fed president Lorie Logan reiterated on Monday that she sees policymakers lowering interest rates “gradually”. She cited an increased risk that the job market could worsen and a danger that inflation could still heat up again.
“If the economy evolves as I currently expect, a strategy of gradually lowering the policy rate toward a more normal or neutral level can help manage the risks and achieve our goals,” Logan said in a speech at the Securities Industry and Financial Markets Association’s annual meeting in New York.
Logan said the economy is “strong and stable” but that “meaningful uncertainties” remain in the outlook.
Read more here.
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Nvidia climbs 1% to touch intraday record high
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Stocks dip as investors await fresh batch of earnings
The major averages opened slightly lower on Monday as investors awaited a fresh batch of earnings this week.
The S&P 500 (^GSPC) dropped roughly 0.2%, coming off a fresh all-time closing high, while the Dow Jones Industrial Average (^DJI) edged 0.1% lower. The tech-heavy Nasdaq Composite (^IXIC) shed 0.2%.
A fresh batch of quarterly results will roll in this week, including from Tesla (TSLA) on Wednesday. General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big names on the earnings docket this week.
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Boeing stock rallies on tentative labor deal
Boeing (BA) stock jumped as much as 4.5% in Monday’s premarket on news that the aircraft manufacturer has reached a tentative labor deal with workers who have been on strike for more than one month.
The contract would raise pay 35% over four years and increase Boeing’s 401(k) contributions, but it would not reinstate pension plans — a major union demand. Analysts estimate the contract could lead to an additional $1 billion in wage-related expenses for the company.
The union will vote on the contract on Wednesday, the same day Boeing reports its quarterly earnings. Analysts expect the plane maker to report a loss per share of $1.50, according to Bloomberg consensus estimates.
Boeing has struggled since an airplane part ripped off one of its 737 Max 9 planes during a flight in January. Shares are down over 40% this year.
Of the Wall Street analysts covering the stock tracked by Bloomberg, some 19 recommend buying shares, while 11 have a Hold rating, and three say to sell. On average, analysts see Boeing shares rising to about $192 each over the next 12 months, implying a more than 20% gain.
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