Megacap Tech Stocks In Focus Ahead of Earnings This Week, Crude Oil Drops 5%

Barry Adams
28 Oct, 2024
New York City

Stock market indexes on Wall Street traded higher after geopolitical tensions eased and investors awaited the release of earnings from leading technology companies. 

Investors are hoping that tech companies will reiterate their commitment to continue elevated levels of investments in artificial intelligence infrastructure, which could provide support for the Nasdaq to advance to higher highs. 

Last week, stocks faced headwinds on Wall Street as investors reviewed a flood of earnings for the second consecutive week.

About 30% of the S&P 500 companies have met or exceeded quarterly earnings expectations, setting the stage for market advance.

However, those upward moves were kept in check after bond yields jumped to a three-month high as investors scaled back expectations of additional aggressive rate cuts.

In the busy week ahead, U.S. investors are ready to review non-farm payrolls, the JOLTS job report, the third quarter GDP growth estimate, and the PCE inflation report.

Investors are also looking forward to quarterly results from five of the seven megacap tech stocks, including quarterly releases from Apple, Alphabet, Amazon, Microsoft, and Meta Platforms. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.5% to 5,835.98, the Nasdaq Composite rose 0.7% to 18,646.14, and the Russell 2000 index decreased 0.5% to 2,207.99. 

For the year so far as of Friday's closing, the S&P 500 index is up 22.5%, the Nasdaq Composite has advanced 25.4%, and the Russell 2000 index has gained 9.7%. 

The yield on 2-year Treasury notes edged higher to 4.12%, 10-year Treasury notes inched down to 4.26%, and 30-year Treasury bonds inched higher to 4.52%.

WTI crude oil decreased $4.50 to $67.25 a barrel, and natural gas prices edged down 20 cents to $2.36 a thermal unit.

Gold fell by $14.96 to $2,732.92 an ounce, and silver decreased by $0.26 to $33.43.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.20.

 

U.S. Stock Movers

Energy stocks traded lower after Israel and Iran avoided escalating war after Israel struck Iran's military facilities and avoided oil and nuclear targets over the weekend. 

ExxonMobil declined 1.6% to $116.36, Chevron decreased 2.2% to $147.47, and Marathon Oil dropped 3.3% to $25.58. 

Tech stocks were in focus ahead of closely watched quarterly earnings from leading companies. 

Apple increased 0.6% to $232.90, Alphabet advanced 2% to $168.56, Amazon.com Inc. gained 0.9% to $189.54, Meta Platforms jumped 1.8% to $581.30, and Microsoft inched higher 0.9% to $431.83. 

Boeing declined 1.3% to $153.08 after the embattled aviation company launched an offering to raise as much as $19 billion. 

The company is looking to sell 90 million shares and $5 billion of mandatory convertible securities. 

The commercial plane maker and defense contractor has struggled to stem cash outflow after 33,000 workers struck in September, halting production, including popular 737 Max aircraft. 

McDonald's Corp. decreased 2.7% to $299.0 after the company ruled out the outbreak of E. coli linked to the company's Quarter Pounders. The company said it plans to resume selling quarter pounders at impacted restaurants as early as this week.