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US stocks rise slightly at start of a busy week for earnings, Fed, and jobs report

US stocks rise slightly at start of a busy week for earnings, Fed, and jobs report
January 29, 2024


On Monday, US stocks inched higher, getting off to a steady start as investors prepared for a busy week filled with Big Tech earnings updates, a Federal Reserve rate decision, and the crucial US jobs report. The Dow Jones Industrial Average (^DJI) rose 0.3%, while the S&P 500 (^GSPC) drifted slightly higher. The tech-heavy Nasdaq 100 (^NDX) rose 0.8%. This week is expected to be significant for stocks as five of the “Magnificent Seven” tech companies are set to report earnings. The market will be closely watching companies such as Microsoft (MSFT), Alphabet (GOOGL, GOOG), Apple (AAPL), Amazon (AMZN), and Meta (META). Meanwhile, investors are also preparing for the Fed’s policy decision and the US jobs report for December.

Additionally, concerns about China’s economic health were sparked by the looming failure of property development giant Evergrande (EGRNQ), which has been ordered by a Hong Kong court to liquidate. This is seen as a significant development in the property crisis affecting the world’s second-biggest economy. Oil prices fell as worries about the impact on Chinese demand competed with supply risks from escalating Middle East tensions after a drone attack on US forces. US benchmark WTI futures (CL=F) traded under $78 a barrel, while global benchmark Brent futures (BZ=F) changed hands near $83 a barrel.

The US tax filing season begins on Monday, as the Internal Revenue Service starts accepting and processing 2023 federal tax returns. Taxpayers have until April 15 to file without an extension, and the IRS generally issues refunds within about three weeks after returns are electronically filed.

Tech stocks led Monday’s modest gains in afternoon trading, helping lift the Nasdaq Composite (^IXIC) higher by 0.6%. Some notable movements included Tesla (TSLA) shares jumping as much as 3%, rebounding from a steep sell-off, and Nvidia (NVDA), Meta (META) and Microsoft (MSFT) all rising roughly 1%. Meanwhile, Apple (AAPL) was the only stock among the “Magnificent Seven” trading lower.

A top Goldman Sachs (GS) executive, Jim Esposito, is leaving after nearly three decades, raising questions about the race to succeed CEO David Solomon and capping a period of high-profile management and board changes for the Wall Street giant.

Warner Bros. Discovery (WBD) stock fell as much as 3% on Monday after Wells Fargo downgraded the stock from Overweight to Equal Weight, citing a “risky earnings setup” to kick off the year.

SoFi Technologies (SOFI) shares rose as much as 22% after the fintech company reached profitability for the first time since going public. Lucid (LCID) and iRobot (IRBT) also experienced significant movements on Monday.

The stock market rally is still heavily influenced by tech companies, with Big Tech expected to be the drivers of Q4 earnings growth in the S&P 500. Five of those companies — Apple, Alphabet, Microsoft, Amazon, and Meta — are set to report quarterly results this week. The stock market rally has been calling for a broadened market rally, but the focus remains on big tech companies.

Oil futures fell on Monday amid concerns over the health of the Chinese economy overshadowing worries of escalating tensions in the Middle East. Crude prices were impacted after a Hong Kong court ordered Chinese property developer Evergrande to liquidate. West Texas Intermediate (CL=F) futures slipped more than 1% to trade below $77 per barrel, and Brent (BZ=F), the international benchmark price, also sank more than 1%, hovering just above $82 per barrel.

The major averages held steady on Monday morning, with tech and consumer discretionary stocks drifting higher, while energy-related equities lagged. The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) rose above the flatline, and the tech-heavy Nasdaq (^IXIC) also ticked slightly higher. Meanwhile, the Energy Select Sector ETF (XLE) lagged as shares of Chevron (CVX), ExxonMobil (XOM), and Occidental Petroleum (OXY) fell fractionally. Oil prices also declined on Monday as concerns over the health of the Chinese economy overshadowed worries of escalating tensions in the Red Sea area.

Stocks opened little changed on Monday as investors brace for a busy week filled with Big Tech earnings, a Fed rate decision, and the January jobs report. The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) hovered around the flatline, while the tech-heavy Nasdaq 100 (^NDX) ticked slightly higher. Amazon (AMZN) shares gained 0.4% after the e-commerce giant terminated an agreement to acquire Roomba vacuum maker iRobot (IRBT). The companies said there was “no path to regulator approval for the deal.”

OpenAI
Author: OpenAI

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