U.S. stocks rose modestly on Monday, kicking off a busy week marked by the Federal Reserve’s interest rate decision, employment data and earnings reports from major technology companies.
The Dow Jones Industrial Average (^IXIC) was little changed after the blue-chip index surged more than 650 points on Friday. The S&P 500 Average (^GSPC) rose 0.3%, and the tech-heavy Nasdaq Composite Index (^IXIC) added 0.3%.
Stocks got off to a strong start this week after surging on Friday as investors welcomed encouraging inflation data that solidified prospects for interest rate cuts. But after a volatile session and heavy sell-off in tech stocks, a surprise could come along that will test the fragile rally.
Despite signs that the U.S. economy and inflation are in good shape, the Federal Reserve is not expected to take any action at the end of its meeting on Wednesday. Many on Wall Street believe there are other reasons the central bank should wait until September to act.
Read more: 32 charts that tell the story of today’s markets and economy
The July nonfarm payrolls report due on Friday is expected to show cracks in the labor market and will influence ex-post calculations about the timing and depth of 2024 rate cuts.
With earnings reports coming up this week from Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta (META), investors are on high alert given the sell-off following the first two “Magnificent Seven” earnings reports.
Shares of electric vehicle giant Tesla (TSLA) rose more than 5% on Monday after a bullish outlook from Morgan Stanley, while McDonald’s (MCD) shares rose despite earnings generally missing expectations as consumers cut back on spending at the fast-food chain.
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Monday, July 29, 2024 at 12:35 PM PDT
Lamborghini overcomes luxury market weakness to post best first-half performance ever
Pras Subramanian of Yahoo Finance reports:
Italian luxury automaker Lamborghini delivered impressive results in the first half of 2024, despite a weak sales environment for luxury cars and luxury goods in general.
Lamborghini, part of Volkswagen’s (VW) Audi Group, which includes Audi, Lamborghini, Ducati and Bentley, said it generated a record revenue of 1.6 billion euros ($1.762 billion) for the first half of 2024, up 14.1% from a year ago. Operating profit was again a record at 458 million euros ($495 million).
Lamborghini delivered 5,558 vehicles in the first half of the year, also a record high, thanks to sales of the Revuelto hybrid supercar, the new two-seater Huracan and the Urus SUV, which now comes in a new hybrid SE model.
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Monday, July 29, 2024 at 12:00 PM PDT
Tesla shares rise more than 5% on Morgan Stanley’s bullish outlook
Tesla (TSLA) shares rose more than 5% on Monday following a bullish outlook from Morgan Stanley’s Adam Jonas.
Analysts named the electric car maker their top pick, citing Tesla’s potential to generate positive cash flow after implementing cost-cutting and restructuring measures.
Tesla shares had been rising for much of June but began showing signs of decline earlier this month, dropping more than 12% in a single session last week after the company revealed in its second-quarter earnings report that growth this year will be “significantly lower” than in 2023.
Monday, July 29, 2024 at 11:20 AM PDT
Apple gives developers first look at Apple Intelligence in iOS 18.1 developer beta
Dan Howley of Yahoo Finance reports:
Apple (AAPL) released its latest developer betas for iOS, iPadOS and macOS on Monday, giving developers an early look at the upcoming Apple Intelligence AI platform. Called iOS 18.1, iPadOS 18.1 and macOS Sequoia, the betas are the first to feature the highly-anticipated Apple Intelligence software that the company debuted at its Worldwide Developers Conference (WWDC) in June.
Apple’s developer beta program gives app creators access to the next version of the company’s software to test it and incorporate its features into their own apps. Apple also releases public betas to allow the general public to try out its latest software products before they are made available to the public in the fall.
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Monday, July 29, 2024 at 10:39 AM PDT
Monday Trends Ticker
McDonald’s (MCD)
McDonald’s shares surged more than 4% on Monday even as the company reported weaker-than-expected second-quarter profit as customers avoided eating out.
“Consumers are becoming more cautious with their spending,” CEO Chris Kempczinski said in the earnings call.
ON Semiconductor (ON)
The semiconductor company said its second-quarter profit beat analyst expectations and its third-quarter outlook was roughly in line with Wall Street expectations.
ON Semiconductor surged more than 12% during trading on Monday.
Bitcoin (BTC-USD)
The cryptocurrency surged above $69,000 but pared gains on Monday after Republican presidential candidate Donald Trump spoke at a Bitcoin conference in Nashville over the weekend.
President Trump has promised pro-cryptocurrency efforts, including the creation of a “national strategic bitcoin reserve.”
Monday, July 29, 2024 at 9:45 AM PDT
Investors expect the Fed to set the stage for a rate cut in September when it meets in July.
Jennifer Schonberger of Yahoo Finance reports:
Most Federal Reserve watchers don’t expect the central bank to ease monetary policy this week in Washington, D.C., but do expect policymakers to be ready to cut interest rates when they next meet in September.
Fed officials have said they are growing more confident that inflation will fall sustainably to their 2% target and are also paying closer attention to rising unemployment, another sign that a rate cut could be on the way.
But most Fed watchers say the central bank needs more time to gain confidence while also preparing markets for significant action ahead.
“The pressure is building on the Fed,” said Esther George, a former president of the Kansas City Fed. “I think they’re going to be looking very seriously at September. It seems like we’re getting to a point where that decision is going to be more important. So I’m more confident.”
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Monday, July 29, 2024 at 9:00 AM PDT
S&P 500, Nasdaq rise again
The stock price rose on Monday after briefly turning negative during trading.
The Dow Jones Industrial Average (^DJI) was little changed after falling more than 100 points in morning trading.
The S&P 500 (^GSPC) rose 0.2%, while the tech-heavy Nasdaq Composite Index (^IXIC) turned negative briefly before returning to positive territory and rising 0.2%.
Monday, July 29, 2024 at 8:30 a.m. PDT
Sales are expected to slump as Starbucks pushes Poplar and value plays
Brooke DiPalma of Yahoo Finance reports:
Starbucks (SBUX) investors are remaining cautious ahead of the company’s earnings report on Tuesday.
The company’s shares are down nearly 28% from a year ago, when sales rose 10% and consumer resilience was a testament to the company’s strength. Now, expectations are different.
Third-quarter revenue is expected to rise 0.37% to $9.2 billion, according to Bloomberg consensus estimates. Adjusted earnings per share are expected to be $0.92 compared with $1.00 a year ago.
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Monday, July 29, 2024 at 8:27am PDT
Stocks erase session gains, Nasdaq turns negative
Stock prices on Monday erased the previous day’s gains and traded below flat.
The Dow Jones Industrial Average (^DJI) fell about 100 points after initially opening higher, the S&P 500 Average (^GSPC) fell 0.1%, and the tech-heavy Nasdaq Composite Index (^IXIC) also fell below flat after gaining 0.9%.
Monday, July 29, 2024 at 7:45 AM PDT
Bitcoin remains at $69,000 after President Trump’s speech in support of cryptocurrency
Bitcoin (BTC-USD) traded near $69,000 per token on Monday after former President Donald Trump pushed a pro-crypto agenda at a Bitcoin conference over the weekend.
Trump was speaking at the Bitcoin 2024 keynote in Nashville on Saturday, where the Republican presidential candidate said he plans to make the United States the “cryptocurrency capital of the world” if elected in November. He also proposed creating a “national bitcoin reserve.”
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Monday, July 29, 2024 at 7:00 AM PDT
McDonald’s shares rise despite weaker-than-expected second-quarter profit as consumers cut back on dining out
McDonald’s (MCD) shares rose Monday morning, recovering from an initial negative reaction when the market opened following the fast-food chain’s quarterly earnings report.
Brooke DiPalma of Yahoo Finance reports:
McDonald’s customers are struggling to pay for Big Macs and are once again trying to save money in the second quarter.
The company announced Monday morning that its second-quarter revenue, profit and same-store sales results all missed Wall Street expectations, proving that even America’s most powerful fast-food company is not immune to tough macroeconomic conditions.
Please see here for the detail.
The fast-food chain’s shares initially opened lower but quickly recovered, rising as much as 3% in early trading.
Monday, July 29, 2024 at 6:30 AM PDT
Stocks rise to kick off big week on Wall Street
Stocks rose on Monday, kicking off a big week filled with the Federal Reserve’s interest rate decision, jobs data and tech company earnings reports.
The Dow Jones Industrial Average (^DJI) edged up from its recent surge of more than 650 points. The S&P 500 (^GSPC) rose about 0.3%, and the tech-heavy Nasdaq Composite Index (^IXIC) added 0.5%.
The Federal Open Market Committee meets as scheduled for two days this week, but Fed officials expect no changes to interest rates on Wednesday, and most investors expect policymakers to wait until September to cut rates.
This week will see earnings reports from several major technology companies, including Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META).
Monday, July 29, 2024 at 2:49 AM PDT
Thought-provoking morning charts
This kicks off a very busy week for investors.
Investors are heading into this week still bruised from last week’s unexpected sell-off in tech stocks, but this may just be the beginning, reports Shauna Smith of Yahoo Finance.
RBC strategist Lori Calvasina provides some background on the tech sector’s slowdown:
The hottest stocks start to lose steam in July. (RBC)
