HomeLatest NewsTech gains drive Dow higher as earnings season approaches

Tech gains drive Dow higher as earnings season approaches

Dow Ends Higher on Tech Gains as Earnings Season Heats Up

Investors showed optimism in the stock market today as the Dow closed higher on Monday. Bullish bets on big tech companies drove the market higher, overshadowing concerns about rising Treasury yields. Attention has shifted to the upcoming quarterly earnings reports, which are expected to show an increase in pace this week.

Big Tech Shines, with Apple Being the Exception

With the exception of Apple, big tech companies saw positive performance. Microsoft Corporation and Alphabet Inc Class A led the way as investors shrugged off concerns about rising Treasury yields. Apple, on the other hand, struggled due to disappointing sales of its iPhone 15 in China. The competition from Huawei’s Mate 60 Pro posed challenges for Apple, resulting in softer demand for their latest product.

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Lululemon Athletica Prepares for S&P 500 Entry

Lululemon Athletica Inc experienced a 10% surge in its stock price as the athleisurewear maker is set to join the S&P 500 on Wednesday, replacing Activision. This addition to the major index is expected to generate increased interest and buying activity, according to Oppenheimer.

News Corp Receives Boost from Activist Investor

News Corp witnessed a 4% rise following reports that activist investor Starboard Value has increased its stake in the media company. Starboard Value aims to implement strategic and governance changes to enhance News Corp’s share price. The recommendation to sell News Corp’s digital real estate businesses, including Realtor.com, has been well received.

Charles Schwab Reports Mixed Q3 Earnings

Charles Schwab Corp reported mixed third-quarter results, with earnings falling short of estimates. However, the decline in deposits was not as severe as feared. The brokerage firm has faced challenges as clients move their cash into high-yield products, resulting in a 34% decline in Charles Schwab’s stock price year-to-date. The market awaits further quarterly results from Bank of America Corp, Morgan Stanley, and Goldman Sachs Group.

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Pfizer Upgraded Despite Guidance Cut

Pfizer Inc received an upgrade to buy from hold by Jefferies. The pharmaceutical giant’s plan to cut $3.5 billion in costs is expected to boost earnings. Although Pfizer reduced its full-year guidance on earnings and revenue due to lower-than-expected sales of its COVID-19 vaccine and treatment, the company’s shares rose more than 3%. Other COVID vaccine manufacturers, including Pfizer’s German partner BioNTech SE, Novavax Inc, and Moderna Inc, experienced significant declines in their stock prices.

Cryptocurrency-Related Stocks Soar on Bitcoin Rally

Crypto-related stocks, such as Coinbase Global Inc, Riot Platforms, and MicroStrategy, experienced significant gains as bitcoin surged more than 5%. The rally was fueled by a false report claiming that Blackrock’s application for a spot exchange-traded fund had received approval from the Securities and Exchange Commission. However, bitcoin later pared back some gains and traded below $29,000.

The stock market continues to be influenced by various factors, including tech performance, quarterly earnings reports, and cryptocurrency trends. Investors eagerly await the outcomes of these events as they shape market sentiment and investment decisions.

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