Stocks Climb as Earnings Season and Key Economic Data Kick Off; Dow Ends 5-Day Losing Streak

Updated November 11, 2024

Source: AFP/Getty Images

Major U.S. stock indexes rose on Monday, kicking off a pivotal week filled with earnings reports from major companies and the release of critical economic indicators.

The Dow Jones Industrial Average rose 0.7%, snapping a five-day losing streak, while the S&P 500 and Nasdaq Composite gained 0.3% each. This comes after a choppy trading week that saw the S&P 500 and Dow post their first weekly losses in seven weeks.

Large-cap technology stocks were mixed. Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), and Broadcom (AVGO) saw gains, while Nvidia (NVDA) and Microsoft (MSFT) edged lower. Tesla (TSLA) dropped 2.5%, following a 25% surge over the previous two sessions after its strong earnings report.

The earnings calendar was light on Monday but is set to heat up with reports from tech giants such as Apple, Microsoft, Alphabet, Meta, and Amazon later this week. Other notable names reporting include Intel (INTC), Advanced Micro Devices (AMD), McDonald's (MCD), Eli Lilly (LLY), ExxonMobil (XOM), and Starbucks (SBUX).

Shares of oil and oilfield services companies declined as crude prices dropped over 5% following Israel’s decision not to target energy facilities in its recent strike on Iran. ExxonMobil, Diamondback Energy (FANG), ConocoPhillips (COP), and Halliburton (HAL) ended lower. However, airline stocks like American (AAL), Delta (DAL), and United (UAL) gained more than 2%, buoyed by the prospect of lower fuel costs. Carnival (CCL) shares jumped 4.8%.

In the Dow, 3M (MMM) led gainers, climbing 4.4% after J.P. Morgan reiterated an 'overweight' rating and raised its price target. Conversely, Boeing (BA) fell 2.8% after announcing plans to raise approximately $19 billion to strengthen its finances.

The 10-year Treasury yield reached 4.30% during the session, marking a three-month high, and settled at 4.28% late Monday. Yields have been climbing as markets adjust expectations for the Federal Reserve’s potential rate cuts.

This week, market participants await critical economic data, including inflation figures, GDP growth, and the October jobs report due on Friday. These reports could provide insights into the economy’s health and guide the Federal Reserve’s next steps on interest rates.

Elsewhere, gold futures remained stable near $2,755, while bitcoin surged to $69,500, its highest level of the month.