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Stock Market Soars as Earnings Season Begins: Dow Jones Hits ...
2024-07-13 15:02:27
Stocks
Economy

Stock Market Soars as Earnings Season Begins: Dow Jones Hits 40,000-Point Milestone

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The US stock markets are experiencing a significant surge as the earnings season kicks off, fueled by anticipation of interest rate cuts by the US Federal Reserve in September. The Dow Jones Index has skyrocketed to a new all-time high, crossing the remarkable threshold of 40,000 points.

Despite the initial climb, the indices have seen some retracement in late trading. The major banks are issuing mixed signals as they start reporting their earnings, with notable declines seen in JPMorgan, Wells Fargo, and Citigroup.

Conversely, the technology sector is witnessing a rebound amidst the market fluctuations. Concurrently, the dollar's value continues to decline, while bond yields are on a downward trajectory, shaping the current market landscape.

Related news on that topic:

US Stock Futures Steady as Big Bank Earnings Roll In

US stock futures traded flat as investors assessed earnings reports from major Wall Street banks and awaited inflation data that could impact expectations for Federal Reserve rate cuts. The S&P 500 and Nasdaq Composite snapped a seven-day winning streak on Thursday, with a rotation out of tech stocks towards utilities and real estate. Earnings from JPMorgan Chase, Wells Fargo, and Citigroup were in focus, with JPMorgan's profit surging but Wells Fargo missing estimates. Investors are now debating the extent and timing of potential Fed rate cuts. Big banks like JPMorgan Chase, Citigroup, and Wells Fargo saw a boost in their investment banking fees and trading revenue in the second quarter, indicating a revival on Wall Street. However, higher interest rates and elevated deposit costs ate away at their traditional consumer banking margins, leading to a decline in net interest income. The banks also set aside more money for future loan losses, signaling expectations of worsening credit conditions. The nation's largest banks, JPMorgan Chase and Wells Fargo, reported earnings that were impacted by stubborn inflation. Both banks saw declines in overall deposits and had to increase interest rates paid on checking and savings accounts, which is good for borrowers but not for the banks. Wells Fargo's net interest income fell 9%, while JPMorgan reported losses from offloading sinking mortgage investments, though its investment banking and trading business helped bolster overall results. The banks' earnings provide clues about the state of the economy, with warnings about mounting credit-card unpaid balances and risks from commercial real estate investments.

Navigating Stock Market Volatility: Tech Declines, Small-Caps ... Rate-Cut Speculation

Amidst recent market fluctuations, tech stocks like Nvidia and Microsoft led a decline in US stock indexes, while small-cap stocks soared 3.6% following lower-than-expected inflation data, boosting expectations for increased rate cuts. Despite the Russell 2000 index trailing the S&P 500's gains, analysts foresee a potential broader market rally, particularly benefiting small and mid-cap stocks as the Federal Reserve implements monetary policy adjustments. As political uncertainty adds complexity, long-term investors may find stability in diversified low-cost index funds amidst the evolving market dynamics. The current market scenario, with a concentration of market capitalization in a few top S&P 500 stocks, indicates a potential need for sector rotation and a shift away from tech-heavy investments as AI hype subsides, emphasizing the importance of diversification for sustainable investment strategies.

Read 3 more recent news on this topic

The press radar on this topic:

n-tv.de
12. Juli 2024 um 20:46

Earnings season starts: Dow reaches 40,000-point mark - n-tv.de

Finance
Economy
Technology
The US stock markets continue their price rally, driven by expectations of interest rate cuts by the US Federal Reserve in September. The Dow Jones Index climbs to a new all-time high of over 40,000 points. However, the indices give back some of their gains in late trading. The major banks are starting the earnings season on a mixed note, with JPMorgan, Wells Fargo and Citigroup recording partly significant price declines. Technology stocks, on the other hand, are recovering. The dollar contin..
The Street
16. Juli 2024 um 11:36

Stock Market Today: Stock futures mixed as banks post earnings TheStreet Daily Newsletter

Finance
Stock futures were mixed on Friday as major banks reported their second-quarter earnings. The Dow Jones Industrial Average futures were up slightly, while S&P 500 and Nasdaq futures were flat or slightly down. The earnings reports from Wells Fargo, JPMorgan Chase, and Citigroup showed mixed results, with some banks reporting higher net income but also facing challenges like declining net interest income and regulatory fines.
Yahoo Finance
13. Juli 2024 um 12:47

Dow Jones Futures: Market Rally Powers Up On Fed Rate Cut Hopes; 4 Stocks In Buy Zones | Investor's Business Daily

Finance
Technology
The article discusses the strong performance of the stock market rally last week, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all hitting record highs. Key earnings reports from companies like Netflix, Taiwan Semiconductor, ASML, and Goldman Sachs are expected this week. The article also highlights several stocks, including Weatherford International, TopBuild, AppFolio, and Tencent, that are in buy zones or have broken out. Despite the overall market strength, the arti..
The Street
15. Juli 2024 um 10:38

Stock Market Today: Stocks dip with inflation on deck, Costco leaps TheStreet Daily Newsletter

Finance
Economy
U.S. equity futures slipped lower as investors braced for a key inflation reading and the start of the second quarter earnings season. The S&P 500 and Nasdaq extended their winning streaks, with the S&P 500 closing above the 5,600 point mark for the first time on record. Costco shares jumped 3.1% after posting solid June sales and lifting its membership fees, while Delta Air Lines shares slumped 6.3% after posting weaker-than-expected earnings.
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