U.S. stocks edged higher on Monday, with the S&P 500 hitting another record close, as investors braced for a busy week full of earnings reports from Big Tech, a Federal Reserve interest rate decision and the key U.S. jobs report.
The Dow Jones Industrial Average (^DJI) rose 0.6%, while the S&P 500 (^GSPC) rose 0.8%, continuing last week's gains from the indices. The tech-heavy Nasdaq Composite (^IXIC) gained over 1%.
With five of the “Magnificent Seven” tech companies set to report earnings soon, it's looking like a crunch week for stocks. Big Tech has driven the S&P 500's recent record-breaking gains, and the focus will be on whether their AI efforts and layoffs pay off.
Microsoft (MSFT) and Alphabet (GOOGL, GOOG) lead the pack on Tuesday, with Apple (AAPL), Amazon (AMZN) and Meta (META) among the 100-plus companies making the list.
At the same time, investors are preparing for the Fed's policy decision on Wednesday after last week's data showed cooling inflation and a robust economy. While policymakers are expected to keep interest rates steady at 5.25%, the market will be listening closely to comments from Chairman Jerome Powell for clues on when rate cuts might begin, during March -Betting will be scaled back.
In addition, the US labor market report for December will be published on Friday, which will be included in the calculations as to whether the Fed has achieved a “soft landing”.
Read more: What the Fed's pause on rate hikes means for bank accounts, CDs, loans and credit cards
Oil prices fell as concerns about an impact on Chinese demand competed with supply risks from escalating tensions in the Middle East following a drone attack on U.S. forces. U.S. benchmark WTI futures (CL=F) fell more than 1% to close at $76.78 a barrel, while global benchmark Brent futures (BZ=F) also closed lower at $82.40 a barrel Barrels closed.
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Monday, January 29, 2024 at 9:02 p.m. GMTThe stock market hits a new record, opening the week of earnings for the major technology companies
The Dow Jones Industrial Average (^DJI) rose slightly on Monday, while the S&P 500 (^GSPC) rose 0.6% with new record closes earlier in the week. The tech-heavy Nasdaq 100 (^NDX) also rose 1%.
Tech stocks led the session's gains as shares of Tesla (TSLA) rose 4%. Nvidia (NVDA), Meta (META) and Microsoft (MSFT) all rose about 1% to hit record highs.
Apple (AAPL) was the only stock in the Magnificent Seven group to close slightly lower, down about 0.4%.
Investors are expecting a packed week of earnings from big tech companies. Markets will also digest the Federal Reserve's interest rate decision on Wednesday and the January jobs report on Friday.
- Monday, January 29, 2024 at 8:30 p.m. GMT
Tax filing season begins when the IRS begins accepting tax returns
U.S. tax filing season begins Monday when the Internal Revenue Service begins accepting and processing 2023 federal tax returns.
Taxpayers have until April 15 to file without an extension.
The IRS typically refunds within about three weeks of filing the refund electronically – even faster if you choose direct deposit instead of a mailed check.
Yahoo Finance's Rebecca Chen shares other important facts and data to keep in mind when filing your taxes.
- Monday, January 29, 2024 at 8:00 p.m. GMT
Tech leads stock gains
Tech stocks led modest gains in afternoon trading on Monday, helping the Nasdaq Composite (^IXIC) rise 0.6%.
Shares of Tesla (TSLA) rose as much as 3%, recovering from a sharp selloff last week after the electric vehicle giant gave a gloomy 2024 production outlook.
Nvidia (NVDA), Meta (META) and Microsoft (MSFT) all rose about 1%. Apple (AAPL) was the only stock in the Magnificent Seven group to trade lower, down about 0.5%.
This is expected to be a packed week as investors anticipate big tech gains. Markets will also digest the Federal Reserve's interest rate decision on Wednesday and the January jobs report on Friday.
Heatmap of the Nasdaq 100 at 2:55 p.m. Eastern time on January 29th.
- Monday, January 29, 2024 at 7:15 p.m. GMT
The surprise exit of a key Goldman executive is the latest shock to the banking giant
Another top Goldman Sachs (GS) executive is leaving the company.
Jim Esposito, who was co-head of Goldman's global banking and markets division, will be leaving the company after nearly three decades, according to a memo seen 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 replace CEO David Solomon and caps a period of high-profile management and board changes for the Wall Street giant.
Read more here.
- Monday, January 29, 2024 at 6:30 p.m. GMT
Warner Bros. Discovery stock falls on analyst downgrade
Shares of Warner Bros. Discovery (WBD) fell as much as 3% on Monday after Wells Fargo downgraded the stock from Overweight to Equal Weight, citing a “risky earnings picture” to start the year.
“We have thoroughly reviewed our 2024 WBD earnings estimates and come to a more negative conclusion,” Wells Fargo analyst Steve Cahall wrote in a note to clients on Monday.
Read more from Yahoo Finance's Allie Canal here.
- Monday, January 29, 2024 at 5:45 p.m. GMT
Trend ticker on Monday
SoFi Technologies (SOFI)
SoFi shares rose as much as 22% after the fintech company reached profitability under generally accepted accounting principles (GAAP) for the first time since its IPO. SoFi's fourth-quarter net income was $48 million, or $0.02 per share.
The company also posted record adjusted sales of $594 million for the 11th consecutive quarter.
Clear (LCID)
The luxury electric vehicle maker's shares rose as much as 21% on Monday, taking the second-best ticker spot on Yahoo Finance.
The startup is expected to report its quarterly results on February 21st. Wall Street analysts have zero buy recommendations, twelve hold recommendations and five sell recommendations for Lucid shares.
Short interest in the stock is just over 26% of the float, making it vulnerable to short squeezes.
The stock has fallen about 24% since the start of the year.
I robot (IRBT)
Shares of iRobot pared some of their losses after plunging as much as 18% after the vacuum cleaner maker's sale to Amazon (AMZN) fell through amid opposition from EU regulators.
The companies said there was “no path to regulatory approval of the deal.” On Monday, iRobot announced that it would cut 31% of its workforce and that CEO Colin Angle would resign immediately.
- Monday, January 29, 2024 at 5:00 p.m. GMT
Why Big Tech's Profits Are Crucial to the Success of the Market Rally
The stock market rally is still all about technology.
Strategists have called for the market rally to extend, but big technology companies are expected to be the drivers of fourth-quarter earnings growth in the S&P 500, according to new data from FactSet.
As Yahoo Finance's Josh Schafer points out, five of those companies – Apple, Alphabet, Microsoft, Amazon and Meta – will report quarterly results this week.
Earnings for Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META) and Nvidia (NVDA) are expected to rise a combined 53.7% in the fourth quarter. Meanwhile, the other 494 companies in the S&P 500 are expected to decline 10.5%.
Read more here.
- Monday 29 January 2024 at 16:10 GMT
Oil prices fall as China concerns overshadow escalating tensions in the Middle East
Oil futures fell on Monday, paring an initial rise after Iran-backed militants killed three U.S. soldiers in Jordan over the weekend.
Crude oil prices fell after a Hong Kong court ordered the liquidation of Chinese property developer Evergrande. According to the ruling, the company, once worth about $50 billion, was unable to implement its restructuring plan.
West Texas Intermediate (CL=F) fell more than 1% to trade at around $77 a barrel. Brent (BZ=F), the international benchmark price, also fell below $83 a barrel.
Crude oil prices rose more than 6% last week as traders gauged what a broader escalation in Middle East tensions means for oil prices. Iran-backed Houthi rebels have continued to attack ships in the Red Sea, prompting cargo companies to delay or reroute their shipments.
“While the attacks caught the attention of traders, there was no real disruption in oil supplies at this point,” Dennis Kissler, senior vice president at BOK Financial, said in a statement Monday.
- Monday, January 29, 2024 at 3:15 p.m. GMT
Tech stocks rise, energy collapses
Major averages remained steady Monday morning as technology and consumer discretionary stocks rose while energy stocks lagged.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) rose above the zero line. The technology-heavy Nasdaq (^IXIC) was also slightly higher.
Meta (META) hit an intraday high as Microsoft (MSFT) and Amazon (AMZN) gained ahead of their earnings releases this week.
Meanwhile, the Energy Select Sector ETF (XLE) lagged as shares of Chevron (CVX), ExxonMobil (XOM) and Occidental Petroleum (OXY) fell modestly.
Oil prices fell on Monday as worries about the health of China's economy overshadowed worries about escalating tensions in the Red Sea region.
West Texas Intermediate (CL=F) futures slipped more than 1% to trade below $77 a barrel. Brent (BZ=F), the international benchmark price, also fell more than 1% to just above $82 a barrel.
- Monday, January 29, 2024 at 2:31 p.m. GMT
Stocks were little changed at the start of the week with earnings from big tech companies
Stocks opened little changed as investors braced for a busy week with earnings from Big Tech, a Fed interest rate decision and the January jobs report.
The Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) hovered around the flat line after key stock indicators posted weekly gains. The tech-heavy Nasdaq 100 (^NDX) was trading slightly higher on Monday morning.
Shares of Amazon (AMZN) rose 0.4% after the e-commerce giant terminated an agreement to acquire Roomba vacuum cleaner maker iRobot (IRBT). The companies said there was “no path to regulatory approval of the deal.”
Shares of iRobot fell more than 16%. The company announced that it would cut 31% of its workforce and that CEO Colin Angle would resign immediately.
Shares of Tesla (TSLA) opened higher on Monday, rebounding from a sharp selloff last week after the electric vehicle giant gave a gloomy 2024 production outlook.
Monday, January 29, 2024 at 9:02 p.m. GMT
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