US stocks inched higher on Monday as investors braced for a busy week packed with Big Tech earnings updates, a Federal Reserve rate decision, and the crucial US jobs report.
The Dow Jones Industrial Average (^DJI) hugged the flatline while the S&P 500 (^GSPC) drifted slightly higher, getting off to a muted start after the major stock gauges notched weekly wins. The tech-heavy Nasdaq 100 (^NDX) rose 0.5%.
With five of the “Magnificent Seven” tech companies set to report earnings, it looks like a crunch week for stocks. Big Tech has driven the S&P 500’s recent record-setting gains, and the focus will be on whether their AI efforts and layoffs are paying off.
Microsoft (MSFT) and Alphabet (GOOGL, GOOG) lead out the pack on Tuesday, with Apple (AAPL), Amazon (AMZN), and Meta (META) among the 100-plus flood of corporates on the docket.
At the same time, investors are preparing for the Fed’s policy decision on Wednesday after data last week showed inflation cooling and the economy robust. While policymakers are expected to hold interest rates steady at 5.25%, the market will listen closely to Chair Jerome Powell’s comments for clues as to when cuts could begin amid a scaling back on March bets.
Also coming is Friday’s US jobs report for December, which will factor into calculations of whether the Fed has managed a “soft landing.”
Meanwhile, concerns about China’s economic health were stoked by the looming failure of property development giant Evergrande (EGRNQ). A Hong Kong court has ordered the hugely indebted company to liquidate, seen as a milestone in the property crisis upending the world’s second-biggest economy.
Oil prices fell as concerns about an impact on Chinese demand vied with supply risks from escalating Middle East tensions after a drone attack on US forces. US benchmark WTI futures (CL=F) traded under $78 a barrel, while global benchmark Brent futures (BZ=F) changed hands near $83 a barrel.
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Tech leads stock gains
Tech stocks led Monday’s modest gains in afternoon trading, helping lift the Nasdaq Composite (^IXIC) higher by 0.6%.
Nvidia (NVDA), Meta (META) and Microsoft (MSFT) all rose roughly 1%. Apple (AAPL) was the only stock among the “Magnificent Seven”group that was trading lower, down about 0.5%.
This is expected to be a jam packed week as investors anticipate big tech earnings. The markets will also be digesting Wednesday’s rate decision from the Federal Reserve and Friday’s January jobs report.
Heat map of Nasdaq 100 at 2:55 PM Eastern on January 29.
Surprise exit of a key Goldman exec is latest shakeup for bank giant
Another top Goldman Sachs (GS) executive is leaving.
Jim Esposito, who had been co-head of Goldman’s global banking and markets division, will leave after nearly three decades, according to a memo viewed by Yahoo Finance. The Wall Street Journal was the first to report the departure.
As Yahoo Finance’s David Hollerith reports, Esposito’s departure raises new questions about the race to succeed CEO David Solomon, and caps a period of high-profile management and board changes for the Wall Street giant.
Warner Bros. Discovery stock falls on analyst downgrade
Warner Bros. Discovery (WBD) stock fell as much as 3% on Monday after Wells Fargo downgraded the stock from Overweight to Equal Weight, citing a “risky earnings setup” to kick off the year.
“We’ve taken a thorough scrub of our 2024 WBD earnings estimates and come out more negative,” Wells Fargo analyst Steve Cahall wrote in a note to clients on Monday.
SoFi shares rose as much as 22% after the fintech company reached profitability for the first time since going public under generally accepted accounted principles (GAAP). SoFi’s fourth quarter net income came in at $48 million, or $0.02 per share.
The company also generated its 11th consecutive quarter of record adjusted net revenue of $594 million.