Wall Street Indexes Flatlined Ahead of Big Tech Earnings

Barry Adams
29 Oct, 2024
New York City

Stocks rested on Wall Street as investors awaited quarterly results from leading tech companies later in the week. 

The S&P 500 index and the Nasdaq Composite gained a fraction as investors turned cautious with only five days remaining for the U.S. presidential election. 

More than 700 companies this week are set to release their quarterly results as the busiest week of the current earnings season continues. 

Crocs, Shutterstock, D.R. Horton, Alphabet, AMD, Chipotle Mexican Grill, and Snap are among the 178 companies scheduled to release their results Tuesday. 

D.R. Horton plunged more than 10% after the company reported weaker-than-expected results and Shutterstock jumped 13% after revenues were ahead of market expectations. 

On the economic front, the number of job openings decreased 418,000 to 7.44 million in September from a downwardly revised 7.861 million in August, the U.S. Bureau of Labor Statistics reported Tuesday.

The number of job openings declined to the lowest level since January 2021, indicating that job market conditions are moderating. 

The openings in healthcare and social assistance fell by 178,000, and state and local governments excluding education decreased by 79,000, but rose in finance and insurance by 85,000. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,830.06, the Nasdaq Composite rose 0.3% to 18,626.61, and the Russell 2000 index decreased 0.4% to 2,228.40. 

For the year so far as of Monday's closing, the S&P 500 index is up 22.4%, the Nasdaq Composite has advanced 25.5%, and the Russell 2000 index has gained 11.5%. 

The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.33%, and 30-year Treasury bonds inched higher to 4.57%.

WTI crude oil increased $0.15 to $67.54 a barrel, and natural gas prices edged down 2 cents to $2.84 a thermal unit.

Gold fell by $11.72 to $2,756.87 an ounce, and silver increased by $0.43 to $33.14.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.54.

 

U.S. Stock Movers

MicroStrategy advanced 4.2% to $266.08 ahead of the company's quarterly results on Wednesday. 

The software company is also favorites among high-risk traders looking to benefit from future gains in Bitcoin, which topped $70,000 in Monday's trading. 

HSBC Holdings increased 4.3% to $47.12 after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter. 

Revenue increased 5% to $17.21 billion from $16.7 billion, and net income advanced 8% to $6.7 billion from $6.2 billion a year ago, respectively. 

The largest European bank also announced a stock repurchase plan of $3 billion. 

McDonald's increased 0.7% to $299.07 after the fast food chain reported better-than-expected quarterly results. 

Consolidated revenue in the third quarter increased 3% to $6.9 billion from $6.7 billion, net income fell 3% to $2.25 billion from $2.32 billion, and earnings per share fell 1% to $3.13 from $3.17 a year ago. 

Global comparable sales declined 1.5% in the quarter, but sales in the U.S. rose 0.5%. 

However, the latest E. coli outbreak in 13 states linked to the company's Quarter Pounder burger is likely to dent sales in the current quarter. 

Cadence Design Systems jumped 10.5% to $279.24 after the chip design software company reported better-than-expected quarterly results. 

Revenue in the third quarter increased to $1.21 billion from $1.02 billion, net income decreased to $238.1 million from $254.3 million, and diluted earnings per share fell to 87 cents from 94 cents a year ago. 

The company reiterated its full-year 2024 revenue to range between $4.61 billion and $4.65 billion and diluted net income per share between $3.70 and $3.76.