Stocks On Upswing Ahad of Mega-cap Earnings and Fed Rate Decisions

Barry Adams
29 Jul, 2024
New York City

Benchmark indexes on Wall Street advanced as investors prepared for a flood of results from corporations, including mega-cap tech companies. 

In Monday's trading, the S&P 500 index advanced 0.4% and the Nasdaq Composite gained 0.8% as investors held out for higher earnings from leading tech companies. 

In the previous week, the S&P 500 index and the Nasdaq Composite extended losses to the second week in a row as investors rotated into smaller companies and cyclical sectors after Alphabet and Tesla reported weak quarterly results.

In the previous week, the S&P 500 index declined 0.8% and the tech-heavy Nasdaq Composite dropped 2.1% amid heightened volatility. 

This week, U.S. investors are looking forward to monetary policy decisions by the Federal Reserve. 

The central bank is likely to keep key lending rates steady for the eighth time in a row, and investors are looking for clues about the rate path and the Fed’s views on the economy.

The U.S. economy is expected to add 185,000 jobs in July, slower than 206,000 in June, while the jobless rate is expected at 4.1% and wage growth is expected at 0.3%.

On the earnings front, Apple, Amazon, Microsoft, Mastercard, Toyota, AMD, Starbucks, Chevron, and Exxon Mobil are scheduled to release their results. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.4% to 5,481.73, the Nasdaq Composite added 0.8% to 17,493.94, and the Russell 2000 index rose 0.1% to 2,262.47.

The yield on 2-year Treasury notes edged lower to 4.39%, 10-year Treasury notes decreased to 4.17%, and 30-year Treasury bonds decreased to 4.42%.

WTI crude oil increased $0.04 to $77.16 a barrel, and natural gas prices edged up 3 cents to $2.04 a thermal unit.

Gold decreased by $5.19 to $2,391.18 an ounce, and silver declined by $0.02 to $27.90. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.65.

 

U.S. Stock Movers 

McDonald's Corp. jumped 3.7% to $261.28 despite the fast food company reporting weaker-than-expected revenue and earnings in the second quarter. 

Consolidated revenue in the second quarter was stable at $6.5 billion, net income declined 12% to $2.0 billion from $2.3 billion, and earnings per share dropped to $2.80 from $3.15 a year ago. 

Global comparable sales declined 1.0%, driven by a 0.7% decrease at U.S. stores, and international location segments declined 1.1%.