Stocks finished higher, as the tech sector rebounded from yesterday's late-session slump and the Dow closed at a fresh record high.
The Dow Jones Industrial Average gained 337.28 points, or 0.79%, to end the session at a record-breaking close of 43,077.70.
The S&P 500 advance 0.47% to 5,842.47, while the tech-heavy Nasdaq rose 0.28% to finish the day at 18,367.08.
Morgan Stanley and United Airlines were some of the session's biggest gainers as both companies beat Wall Street's earnings forecasts.
Roughly 50 S&P 500 stocks have posted third-quarter earnings thus far, with 79% of those beating expectations, CNBC reported, citing FactSet data.
“To say the U.S. economy has been difficult to read is an understatement,” said Lawrence Gillum, Chief Fixed Income Strategist for LPL Financial. “From generationally high inflation and interest rates to concerns about the labor market, it’s no wonder consumers are unsure about the overall health of the economy.”
He said that 59% of Americans believe that the U.S. is currently in a recession, according to a recent survey of 2,000 adults by Affirm in June.
After hovering around the lowest levels since 2015, Gillum said that the Bloomberg Economic Surprise Index has been trending higher lately, "reflecting economic data that has been, in general, better than consensus expectations."
Updated at 1:06 PM EDT
Green is gold
Stocks are getting a boost from both a good few days of big bank earnings, an 11% surge in United Airlines and a pullback in Treasury bond yields.
The S&P 500 was last marked 17 points, or 0.3% higher on the session, with the Dow up 264 points and the Nasdaq rising 23 points, or 0.13%.
Benchmark Treasury note yields eased to just over 4%, while 2-year notes were last marked at 3.940% in the early afternoon session.
Big Bank 3rd Quarter Results...
— Charlie Bilello (@charliebilello) October 16, 2024
Net Income, YoY % Change
Goldman Sachs $GS: +45%
Morgan Stanley $MS: +32%
JP Morgan Chase $JPM: -2%
Citigroup $C: -9%
Wells Fargo $WFC: -11%
Bank of America $BAC: -12% https://t.co/2JIM0dK9Yv
Updated at 11:05 AM EDT
Soaring the friendly skies
United Airlines Holdings (UAL) share surged higher in early trading after the carrier kicked-off the third quarter earnings season for the transport sector with solid profits and a $1.5 billion buyback reveal.
The group also forecast solid-near term travel prospects set against falling fuel prices, and sees December-quarter earnings in the region of $2.50 to $3.00 per share.
United shares were marked 9.1% higher in late-morning trading to change hands at $69.91 each, a move that would extend the stock's six-month gain to around 69%.
Updated at 9:37 AM EDT
Mixed open
The S&P 500 was marked 1 point lower, or 0.05%, in the opening minutes of trading, with the Nasdaq down 16 points, or 0.1%.
The Dow added 52 points, or 0.12% while the mid-cap Russell 2000 rose 19 points, or 0.86%.
S&P 500 Opening Bell Heatmap (Oct. 16, 2024)$SPY -0.08%🟥$QQQ -0.11%🟥$DJI +0.06%🟩$IWM +0.78%🟩 pic.twitter.com/enwBokisJm
— Wall St Engine (@wallstengine) October 16, 2024
Updated at 8:56 AM EDT
Bank on it
Morgan Stanley (MS) shares jump firmly higher in premarket trading after the lender rounded out a solid set of big bank earnings with a stronger-than-expected update tied in part to a boost in dealmaking fees.
The bank said its investment banking fees surged 56% from last year, topping even the better-than-expected numbers from Goldman Sachs GS and JPMorgan JPM. That helped drive an overall quarterly profit of $3.19 billion, a 32% increase from the same period last year.
Morgan Stanley shares were last marked 3.5% higher in premarket trading to indicate an opening bell price of $116.15 each.
$MS Earnings:
— AlphaSense (@AlphaSenseInc) October 16, 2024
- Net Revenues of $15.4 Billion, EPS of $1.88 and ROTCE of 17.5%
- The Firm expense efficiency ratio was 72% for both the third quarter and year-to-date, benefiting from our scale and disciplined expense management while maintaining strong infrastructure to support… pic.twitter.com/XXovULWm5b
Updated at 6:41 AM EDT
Intel review
Intel (INTC) shares moved lower in early trading after China's tech watchdogs called on the government to consider the tech group's products a threat to national security.
The Cyber Security Association said Intel chips should be subject to an intense review in order to "safeguard China's national security and the legitimate rights and interests of Chinese consumers" in the latest tit-for-tat move in a broader trade war with the U.S.
Intel shares were last marked 2% lower in premarket trading to indicate an opening bell price of $22.17 each.
CHINA CYBERSECURITY ASSOCIATION CALLS FOR REVIEW OF $INTC PRODUCTS
— iTradeOptions (@iTrade_Options) October 16, 2024
The China Cyberspace Security Association recommends a cybersecurity review of Intel’s products sold in China, citing frequent vulnerabilities, reliability issues, and hidden backdoors.
Intel’s CPUs have…
Stock Market Today
Stocks ended lower on Tuesday, with the Nasdaq falling more than 1% in the late hours of the session following a grim third quarter update from European chip equipment maker ASML (ASML) , which warned that the demand heading into 2025, outside of AI, would remain muted.
“It now appears the recovery is more gradual than previously expected," Chief Executive Christophe Fouquet said. "This is expected to continue in 2025, which is leading to customer cautiousness.”
A Bloomberg report suggesting the Biden administration is seeking to cap overseas chip sales to certain countries deemed to be a national security risk added to the drawdown, with the Van Eck Semiconductor ETF (SMH) falling 5.4% by the close of trading.
Nvidia (NVDA) , which tumbled around 4.5% yesterday, is looking at a modest early gain, alongside Intel and Advanced Micro Devices (AMD) .
iStock
That's helping the Nasdaq in premarket trading, which is priced for a modest 20 point opening bell gain, as well as the S&P 500, which is looking at a 2 point advance.
The Dow Jones Industrial Average, meanwhile, is called around 24 points lower.
Away from equities, global oil prices steadied following yesterday's slump, which took WTI futures to a two-week low, as investors remain concerned about the possibility of an Israeli strike on Iranian energy facilities as the war in the Gulf region continues to escalate.
Related: What's next for S&P 500 returns as rally enters third year
Brent crude futures contacts for December delivery, the global benchmark, were last seen trading 11 cents higher at $74.37 per barrel while WTI contracts for November delivery, which are tightly linked to U.S. gas prices, rose 18 cents to $70.76 per barrel.
In overseas markets, Britain's FTSE 100 rose 0.57% in early London trading following data showing inflation last month fell below the 2% mark for the first time since 2021, allowing for an easing of the pound against the dollar on foreign exchange markets.
More Wall Street Analysts:
- Analysts update Meta stock price target with Q3 earnings in focus
- Analysts update outlook for Nvidia's Blackwell chips amid AI boom
- Analyst reboots Reddit stock price target ahead of earnings
The regionwide Stoxx 600, meanwhile, was marked 0.35% lower amid one of the biggest slumps in ASML shares in more than three decades and a sharp pullback in luxury goods company LVMH. (LVMUY)
Overnight in Asia, Japan's Nikkei 225 was marked 1.83% lower following last night's selloff on Wall Street, while the regional MSCI ex-Japan benchmark fell 0.62% into the close of trading.
Related: Veteran fund manager sees world of pain coming for stocks
