Mixed US markets with some stocks up and some down, focus on tech earnings

From Nasdaq: 2024-07-30 11:25:49

US stocks were mixed today, with the S&P 500 down 0.47%, Dow Jones up 0.14%, and Nasdaq down 0.98%. Howmet Aerospace rose 11%, PayPal up 8%, and Stanley Black & Decker up 8%. However, Corning fell over 10%, CrowdStrike down 6%, and Procter & Gamble down 6%.The S&P CoreLogic composite-20 home price index rose 6.81% y/y in May.

Major central banks are meeting this week; BOJ may cut bond purchases, Fed likely to cut rates in September, and BOE expected to cut bank rate by 25 bp to 5.00%. Focus remains on tech stocks for key earnings reports this week, with Magnificent 7 companies reporting.

Market consensus predicts a 9% y/y rise in Q2 earnings for S&P 500 companies. Most companies have beaten earnings but only 43% have beaten revenue expectations. The market is discounting a 25 bp rate cut for the FOMC meeting next week and 100% for the following meeting in September.

Overseas stock markets are mixed, with the Euro Stoxx 50 up 0.60%, Shanghai Composite down 0.43%, and Japan’s Nikkei up 0.15%. Interest rates show a positive trend with T-notes up, German bund yield down to 2.339%, and UK gilt yield down to 4.023%.

Eurozone Q2 GDP grew 0.3% q/q and 0.6% y/y, surpassing expectations. German Jul CPI rose 0.5% m/m and 2.6% y/y, higher than forecast. Swaps indicate a 90% chance of a 25 bp rate cut by the ECB at the September 12 meeting.

Stock movers today include Howmet Aerospace up 11%, PayPal up 9%, Stanley Black & Decker up 7%, and Zebra Technologies up 6%. Corning is down 11%, CrowdStrike down 6%, and Procter & Gamble down 6%, while Merck & Co is down 5%. Earnings reports are lined up for various companies on July 30, 2024.



Read more at Nasdaq: Markets are Mixed Amid Earnings and Fed Speculation