S&P 500 and Nasdaq Rebound Ahead of Busy Week of Earnings

Barry Adams
22 Apr, 2024
New York City

Stocks attempted to rebound as investors gear up for a busy week of earnings ahead. 

The S&P 500 index and the Nasdaq Composite advanced 0.7% in early trading after tensions between Israel and Iran eased for now. 

Both countries showed little interest in escalating tensions after conducting face-saving limited strikes and walked away from the brink of starting what could have turned into a regional war in the Middle East. 

Crude oil eased from five-month highs after tensions in the Middle East eased and investors shifted their focus to upcoming earnings from leading tech companies. 

Earnings releases are expected to pick up, and more than 700 companies are expected to release earnings this week. 

The electric vehicle maker Tesla is scheduled to release earnings after the close of regular trading sessions on Tuesday, Facebook-parent Meta on Wednesday, and Apple, Microsoft, and Intel on Thursday. 

Investors are looking for clues about how companies are adjusting to persistent inflation, rising wage demands, and a strong dollar. 

The U.S. dollar has retained its upward bias in the last three months amid rising geopolitical tensions, and the Japanese yen, the Chinese yuan, the Indian rupee, the euro, and the pound have lost ground. 

The Japanese yen is now down about 50% in the last three years. The Chinese yuan is trading near a record low, the Indian rupee is trading at a record low, and the euro and the pound are hovering near recent lows. 

The Swiss franc has been the only currency to appreciate against the U.S. dollar over the last two years. 

 

U.S. Indexes and Yields

The S&P 500 index increased 0.5% to 5,087.23, and the Nasdaq Composite advanced 0.45% to 15,332,06. 

The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.69%.

WTI crude oil decreased $0.59 to $82.13 a barrel, and natural gas prices decreased 1 cent to $1.74 a thermal unit.

Gold decreased by $0.82 to $2,379.82 an ounce, and silver fell 1 cent to $28.22. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.

 

U.S. Stock Movers

Tesla declined 3.2% to $141.25 on news that the company announced a 5% discount for all electric vehicles in China and Germany as demand lags supply. 

Tesla lowered the Model 3 price in China by 14,000 yuan to 231,000 yuan and also lowered the price in Germany by 2,000 euros to 40,990 euros. 

Cryptocurrency-focused stocks declined ahead of the so-called "halving" of Bitcoin, where cryptocurrency miners are rewarded for miners. 

Bitcoin hovered around $65,000 in early Monday's trading. 

Energy complex stocks declined for the second day in a row following the easing of crude oil prices after tensions in the Middle East eased.