U.S. stocks closed nearly flat on Monday, kicking off an important week filled with Federal Reserve interest rate decisions, employment data and big technology company earnings.
The Dow Jones Industrial Average (^IXIC) closed 0.1% lower on Friday as the blue-chip index rose more than 650 points. The S&P 500 (^GSPC) rose nearly 0.1%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose just above the flatline.
Stocks started the week on a positive note after surging on Friday as investors cheered encouraging inflation data that solidified bets on interest rate cuts. But after a volatile session that saw tech stocks fall sharply, all eyes are on surprises that could test the fragile bull market.
Despite signs that the U.S. economy and inflation have hit a sweet spot, the Fed is not expected to take any action at the end of Wednesday’s meeting. Many on Wall Street believe there is another reason for the central bank to wait until September to act.
Read more: 32 charts that tell the story of today’s markets and economy
The July non-farm jobs report, which follows on Friday, is expected to show cracks in the job market, which will influence after-the-fact calculations on the timing and depth of rate cuts in 2024.
Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta (META) have earnings coming up this week, given the wipeout in their stock prices following the first earnings of the “Magnificent Seven.” Investors are also cautious.
Shares of EV giant Tesla (TSLA) rose more than 5% on Monday after Morgan Stanley’s Adam Jonas designated the stock a “top priority stock.” McDonald’s (MCD) stock rose despite missing profits across the board as consumers cut back on spending at the fast-food chain.
Live coverage more than 13 updates Monday, July 29, 2024, 8:02 PM UTC
Stocks close mixed ahead of important week for markets
U.S. stock markets closed mixed on Monday, kicking off a big week on Wall Street amid Federal Reserve interest rate decisions, jobs data and Big Tech earnings.
The Dow Jones Industrial Average (^IXIC) fell 0.1% after surging more than 650 points on Friday. The S&P 500 (^GSPC) rose 0.1%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose nearly 0.1%.
In a big move on Monday, Tesla (TSLA) stock rose more than 5% after a bullish call from Morgan Stanley. McDonald’s (MCD) stock rose more than 3% despite missing profits across the board as consumers cut back on spending at the fast-food chain.
Investors will hear from a number of Big Tech executives this week, starting with Microsoft (MSFT), which is scheduled to report after Tuesday’s closing bell. Apple (AAPL), Amazon (AMZN), and Meta (META) are scheduled to report their quarterly results later this week.
On Wednesday afternoon, Fed officials are expected to announce their interest rate decisions after two days of meetings. Investors widely expect the central bank to prepare for a rate cut in September.
Employment data for July will be released on Friday.
Monday, July 29, 2024, 7:35 PM UTC
Lamborghini bounces back from slump in luxury car market with record first-half results
Yahoo Finance’s Pras Subramanian reports:
Italian luxury carmaker Lamborghini posted an impressive performance in the first half of 2024, despite a weak sales environment for luxury cars and luxury goods in general.
Lamborghini, part of the Volkswagen (VWAGY) Audi Group, which includes Audi, Lamborghini, Ducati and Bentley, has previously forecast sales of 1.6 billion euros ($1.762 billion) in the first half of 2024, an increase of 14.1% year-on-year. reported to be the highest ever recorded. Operating profit reached a new record of 458 million euros ($495 million).
Lamborghini delivered 5,558 cars in the first half of the year, another record high. This was supported by sales of the hybrid supercar “Revuelto”, the successor 2-seater “Huracan”, and the SUV “Urus” with hybrid SE trim.
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Monday, July 29, 2024, 7:00 PM (UTC)
Tesla rises more than 5% on Morgan Stanley bullish call
Tesla (TSLA) stock rose more than 5% on Monday after a bullish call from Morgan Stanley’s Adam Jonas.
The analyst named the electric car maker a top candidate, citing its potential to generate positive cash flow after Tesla implements cost-cutting and restructuring measures.
Tesla shares rose for much of June, but began showing signs of a pullback earlier this month. Shares at one point fell more than 12% last week after the company reported mixed second-quarter results that revealed growth this year would be “significantly lower” than 2023.
Monday, July 29, 2024, 6:20 PM UTC
Apple gives developers first taste of Apple Intelligence in iOS 18.1 developer beta
Yahoo Finance’s Dan Howley reports:
Apple (AAPL) released its latest developer beta for iOS, iPadOS, and MacOS on Monday, giving developers an early introduction to the upcoming Apple Intelligence AI platform. The beta versions, called iOS 18.1, iPadOS 18.1, and macOS Sequoia, include for the first time the long-awaited Apple Intelligence software that Apple debuted at June’s Worldwide Developer Conference (WWDC).
Apple’s developer beta program allows app creators to access and test the next version of the company’s software and incorporate its features into their own apps. Apple is also releasing public beta versions of its latest software products to the general public to try out before making them available to the public in the fall.
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Monday, July 29, 2024, 5:39 PM UTC
monday trend ticker
McDonald’s (MCD)
McDonald’s stock soared more than 4% on Monday despite disappointing second-quarter results as customers refrained from eating out.
“Consumers are becoming more discerning about their spending,” CEO Chris Kempczinski said in an earnings call.
ON Semiconductor (ON)
The company reported second-quarter profits that beat analysts’ expectations, and its third-quarter outlook is broadly in line with Wall Street expectations.
ON Semiconductor soared more than 12% during Monday trading.
Bitcoin (BTC-USD)
After Republican presidential candidate Donald Trump spoke at a Bitcoin conference in Nashville over the weekend, the cryptocurrency soared above $69,000 and continued higher on Monday.
Trump has promised initiatives to promote cryptocurrencies, including establishing a “strategic national Bitcoin stockpile.”
Monday, July 29, 2024, 4:45 PM UTC
Investors are betting the Fed will use its July meeting to prepare for a September interest rate cut.
Yahoo Finance’s Jennifer Schonberger reports:
Most Fed watchers do not expect the central bank to ease monetary policy this week in Washington, D.C., but they do expect policymakers to prepare for rate cuts at their next meeting in September. It’s about getting things sorted out.
Fed officials said they are getting closer to confidence that inflation is sustainably falling to its 2% target. It also said it was paying more attention to the rising unemployment rate, another sign that cuts may be coming.
However, most Fed watchers say the Fed still needs more time to gain confidence while preparing markets for significant future action.
“The pressure on them is increasing,” said Esther George, former president of the Kansas City Fed. “I think they are thinking very seriously about September. It seems to me that the decision is coming at a more important time and that is why I am more confident.”
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Monday, July 29, 2024, 4:00 PM (UTC)
S&P 500, Nasdaq rise again into green territory
After briefly turning negative during trading, the stock rose on Monday.
The Dow Jones Industrial Average (^DJI) was little changed after falling more than 100 points in morning trading.
The S&P 500 (^GSPC) rose 0.2%, and the tech-heavy Nasdaq Composite Index (^IXIC) briefly turned negative before returning to green territory and rising 0.2%.
Monday, July 29, 2024, 3:30 PM (UTC)
Starbucks expects to report weak sales as it pursues bursting pearls and value strategy
Yahoo Finance’s Brooke DiPalma reports:
Starbucks (SBUX) investors are cautious ahead of Tuesday’s earnings report.
The company’s stock is down almost 28% from a year ago, when the coffee giant painted a resilient consumer image with 10% sales growth. Currently, various expectations are rising.
Third-quarter sales are expected to increase 0.37% to $9.2 billion, according to Bloomberg consensus estimates. Adjusted earnings per share are expected to be $0.92 (compared to $1.00 a year ago).
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Monday, July 29, 2024, 3:27 PM (UTC)
Stocks erase session gains, Nasdaq turns negative
Stock prices erased earlier gains and remained below the flatline on Monday.
After initially rising, the Dow Jones Industrial Average (^DJI) has fallen about 100 points. The S&P 500 Index (^GSPC) fell 0.1%, and the tech-heavy Nasdaq Composite Index (^IXIC) also rose 0.9% before falling below the flat line.
Monday, July 29, 2024, 2:45 PM UTC
Bitcoin is hovering around $69,000 following President Trump’s speech promoting cryptocurrencies.
Bitcoin (BTC-USD) traded near $69,000 per token on Monday after former President Donald Trump promoted a pro-crypto agenda at a Bitcoin conference over the weekend.
Trump was the keynote speaker at Bitcoin 2024 in Nashville on Saturday, saying the Republican presidential candidate plans to make the United States the “crypto capital of the world” if elected in November. He also proposed creating a “national Bitcoin stockpile.”
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Monday, July 29, 2024, 2:00 PM (UTC)
McDonald’s stock rises despite lower second-quarter revenue as consumers cut back on eating out
McDonald’s (MCD) stock rose on Monday morning, recovering from the market’s initial negative reaction following the fast food chain’s quarterly results.
Yahoo Finance’s Brooke DiPalma reports:
McDonald’s customers are on edge again in the second quarter as they grapple with paying for their Big Macs.
On Monday morning, the company reported second-quarter results that fell short of Wall Street expectations for sales, profits and same-store sales, leaving even America’s most dominant fast-food company immune to a difficult macro environment. It has been proven that this is not the case.
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The fast-food chain’s stock price initially started lower, but quickly recovered, rising as much as 3% in early trading.
Monday, July 29, 2024, 1:30 PM UTC
Stocks open higher to start important week on Wall Street
Stocks rose further on Monday as the start of a significant week filled with Federal Reserve interest rate decisions, employment data and tech company earnings.
The Dow Jones Industrial Average (^DJI) is up slightly from its recent surge of over 650 points. The S&P 500 (^GSPC) rose about 0.3%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose 0.5%.
The Federal Open Market Committee holds its two-day meeting scheduled for this week, but Fed officials do not expect any changes in interest rates on Wednesday. Most investors expect policymakers to wait until September to cut rates.
This week, major tech companies such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Meta (META) are scheduled to release their earnings results.
Monday, July 29, 2024 9:49 AM UTC
Thought provoking morning chart
And so begins a very busy week for investors.
Investors started the week hurt by last week’s unexpected sell-off in tech stocks, but that may be just around the corner, according to Yahoo Finance’s Sheena Smith.
RBC strategist Lori Carbasina provides some background on the technology stall below.
