U.S. stocks dipped slightly on Monday as investors awaited significant tech earnings. The Dow Jones fell 35 points (0.1%), the S&P 500 decreased by 7 points (0.1%), and the NASDAQ dropped 60 points (0.3%).
Last week, positive bank and tech earnings helped Wall Street indexes reach record highs, but current investor caution is fueled by an upcoming Federal Reserve meeting and a competitive U.S. presidential election. Concerns about high stock valuations also linger.
Key Tech Earnings This Week
Tesla (TSLA) is expected to report earnings, especially after its recent robotaxi unveiling underperformed expectations. The company also missed third-quarter delivery targets.
Major chipmakers like Texas Instruments, Western Digital, and Lam Research are also set to release earnings, while IBM is due this week as well.
Defense firms such as RTX, Lockheed Martin, and Northrop Grumman will report their earnings too. Telecom companies, including T-Mobile, Verizon, and AT&T, are on tap as well.
Boeing will report its earnings on Wednesday, with a focus on its cash status amid ongoing labor strikes.
Quiet Economic Data Week
This week is light on economic data, but reports on existing and new home sales are expected. Other updates will cover durable goods orders, consumer sentiment, and initial jobless claims.
The Fed’s Beige Book, detailing economic conditions, will be released on Wednesday, along with speeches from various Fed officials throughout the week.
Oil Prices Rebound
Oil prices increased on Monday after last week’s decline. Brent crude rose 1.8% to $74.36 per barrel, while U.S. crude (WTI) went up by 2% to $70.08. Last week, Brent fell over 7%, and U.S. crude dropped around 8%, the largest declines since early September.
China’s economy showed slow growth in Q3, although September consumption data exceeded predictions. Meanwhile, uncertainty remains about the Middle East conflict’s impact on oil supply.
(Article contributed by Ambar Warrick)
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