May 30, 2024
Stock Market

Indexes climb after tough week with mega-cap earnings on deck

A trader looks at market charts on the floor of the New York Stock Exchange.

A trader looks at market charts on the floor of the New York Stock Exchange on January 18, 2023.Angela Weiss/AFP/Getty Images

  • Stocks rose on Monday ahead of a week of high-profile earnings reports.

  • Tesla will report on Tuesday, with Meta due up on Wednesday this week.

  • The stock market is in flux, with prices down from record highs in March as rate-cut outlooks dim.

Stocks were up to start the week as investors turned their attention to big earnings reports on deck.

Traders are trying to claw back from steep losses last week, looking for new catalysts to drive fresh gains as the market adjusts to the outlook of fewer — or even zero — rate cuts for 2024.

“The stock market is in pretty rough shape. The major indexes are all well below their 50-day moving averages. Nvidia and other tech bellwethers are no longer resisting the selling but instead are starting to lead the downturn,” market veteran Ed Yardeni wrote in a note, adding that the big losers from last week were chip makers like Nvidia, which have been a driving force behind the rally that took place from last October through March.

On Tuesday, investors will digest earnings from Tesla, which has a dark cloud hanging over it headed into the release. The stock is down about 40% year-to-date, and Wall Street is losing confidence over its ambitions for robotaxis and self-drive tech at the expense of a cheaper vehicle model.

Meta will report earnings on Wednesday, with other mega-cap tech firms and the remaining Magnificent Seven names on deck for the coming weeks.

Bond yields rose again Monday after the two-year briefly jumped above 5% for the first time since November last week. The 10-year Treasury was up two basis points to 4.641% to start the week.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Monday: 

Here’s what else is going on: 

In commodities, bonds, and crypto: 

  • West Texas Intermediate crude oil edged lower by 0.4% to $82.77 a barrel. Brent crude, the international benchmark, dipped 1% to 86.29 a barrel.

  • Gold fell more than 2% to $2,350 an ounce.

  • The 10-year Treasury yield rose two basis points to 4.641%.

  • Bitcoin was up 2% to $66,176.

Read the original article on Business Insider

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