Wall Street Indexes Trade Sideways Ahead of U.S. Elections and Rate Decisions

Barry Adams
04 Nov, 2024
New York City

Stock market indexes advanced in early trading on Monday as investors prepared for a busy week of earnings and awaited the outcome of the U.S. presidential election and other chambers of legislation. 

The U.S. presidential election could impact stock trading around the world this week, but political leaders in Asia brace for higher trade barriers regardless of which party wins control. 

In addition, the U.S. Federal Reserve is set to announce its monetary policy decision, and investors are divided about the possible rate cut of 25 basis points or no change in rate.

On the earnings front, at least 500 companies are scheduled to release their quarterly results, including Toyota Motor, Ferrari, AIG, CVS, Qualcomm, and Marriott.

Last week, world stock market indexes declined in unison as investors faced a deluge of corporate earnings, a flood of economic data, and political outcomes.

World market indexes fell between 1% and 2% as investors turned cautious ahead of the U.S. presidential election on Tuesday, and in political upheaval, Japan’s ruling coalition lost its majority in the parliamentary elections.

Moreover, investors are closely monitoring which party wins control of the U.S. House of Representatives and the U.S. Senate, which could determine future tax system overhaul and trajectory of government spending. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.3% to 5,711.49, the Nasdaq Composite fell 0.6% to 18,127.60, and the Russell 2000 index rose 0.6% to 2,210.13. 

The yield on 2-year Treasury notes edged higher to 4.16%, 10-year Treasury notes inched higher to 4.29%, and 30-year Treasury bonds increased to 4.49%.

WTI crude oil increased $1.91 to $71.40 a barrel, and natural gas prices edged down 2 cents to $2.64 a thermal unit.

Gold increased by $8.58 to $2,744.84 an ounce, and silver increased by $0.27 to $32.70.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.74.

 

U.S. Stock Movers

Marriott International declined 2% to $255.30 after the hotel chain operator reported its quarterly results.

Revenue increased 6% to $6.3 billion from $5.9 billion, net income plunged 22% to $584 million from $752 million, and diluted earnings per share fell 18% to $2.02 from $2.51 a year ago. 

The company added a net 16,000 rooms in the quarter and indicated about 3,800 properties with 585,000 rooms were in the development stage around the world. 

The company also confirmed it acquired 4.5 million shares of common stock for $1.0 billion in the third quarter. 

Berkshire Hathaway Inc. Class B declined 0.3% to $451.0 after the diversified conglomerate reported its quarterly results. 

Total revenue in the third quarter declined to $92.99 billion from $93.21 billion, net earnings attributable to shareholders swung to a profit of $26.2 billion from a loss of $12.7 billion, and diluted earnings per Class B share were $12.18 from a loss of $5.88 a year earlier. 

The company's operating earnings from fully-owned businesses declined 6% to $10.1 billion, reflecting a weakness in its underwriting business. 

Investment in equity securities declined to $271.6 billion from $353.8 billion, and cash and equivalent rose to $325.2 billion from $276.9 billion a year ago.