U.S. stocks fell before the bell on Monday, led by tech stocks, as investors braced for a week packed with top-level gains that could fuel or drag record gains.
S&P 500 futures (ES=F) fell about 0.3%, closing at a new all-time high for the sixth straight week of gains. Dow Jones Industrial Average futures (YM=F) fell 0.2%, and the tech-heavy Nasdaq 100 (NQ=F) contract fell 0.6%.
Whether a company’s performance exceeds high expectations is largely dependent on its continued record. Earnings season is in full swing this week, with more than 100 S&P 500 companies lining up to report. So far, 80% of the Q3 updates included in the benchmark have exceeded the baseline.
Investors are nervous about Tesla’s (TSLA) Wednesday report after its robotaxi announcement fell short of expectations. Despite Netflix’s (NFLX) strong kickoff to the large-cap season, the EV maker has been a highlight of the week as questions remain about Big Tech’s performance.
General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among the other big names appearing on earnings sheets this week.
Boeing (BA) faces a double whammy as it plans to release earnings on Wednesday at the same time workers vote on whether to accept a tentative deal reached with the union to end a five-week strike. There is. The company’s stock rose more than 3% in early trading Monday.
Meanwhile, oil prices recovered, rising by about 2% along with the rise in Chinese stocks (000300.SS), as China continued its economic stimulus measures by cutting key lending rates. Brent crude oil futures (BZ=F), the world benchmark, are trading around $74 per barrel, while West Texas Intermediate (CL=F) crude oil futures are above $70, indicating Israel’s next move on Iran. is also attracting attention.
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Monday, October 21, 2024 9:30 a.m. EDT
Stocks fall as investors await new financial results
Major averages opened slightly lower on Monday as investors awaited new financial results this week.
The S&P 500 (^GSPC) was down about 0.2%, hitting a new closing high, while the Dow Jones Industrial Average Futures (^DJI) was down 0.1%. The Nasdaq Composite Index (IXIC), which is heavy on tech stocks, fell 0.2%.
This week, new quarterly earnings are expected to be released on Wednesday, including major companies like Tesla (TSLA), General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS). This week’s earnings statement.
Monday, October 21, 2024 9:25am EDT
Boeing shares rise on interim labor agreement
Boeing shares rose as much as 4.5% in premarket Monday on news that the plane maker had reached a tentative labor agreement with workers who have been on strike for more than a month.
The deal increases wages by 35% over four years and increases Boeing’s 401(k) contributions, but does not include reinstatement of the pension plan, a key demand from unions. Analysts estimate the deal could add an additional $1 billion to the company’s wage-related costs.
The union is scheduled to vote on the contract Wednesday, the same day Boeing releases its quarterly results. Analysts expect the company to report a loss in earnings of $1.50 per share, according to the Bloomberg consensus estimate.
Boeing Co. has been struggling this year since aircraft parts ripped off one of its 737 Max 9 planes during a flight in January. The stock price has fallen more than 40% this year.
Of the Wall Street analysts tracking the stock tracked by Bloomberg, about 19 recommend the stock as a buy, while 11 have a hold rating and three have a sell rating. . Analysts, on average, expect Boeing’s stock to rise to about $192 over the next 12 months, implying an increase of more than 20%.
Monday, October 21, 2024 8:02am EDT
