Market Recap (10/20/24)
Market Recap of the Week of Oct 14, 2024 - Oct 18, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, stocks fell after rising on Monday but ultimately rebounded, marking the fifth straight positive week for indices. The New York Stock Exchange rose 174 points (+0.88%), the S&P 500 climbed 49 points (+0.86%), the NASDAQ Composite posted weekly gains of 146 points, and the Dow Jones Industrial Average finished the week up 411 points (+0.96%).
Stocks rose on Monday as investors awaited the plethora of earning reports set to be released throughout the week.
Stocks fell during Tuesday’s trading session due to rough earnings reports and economic news. ASML Holding (NASDAQ: ASML) tumbled nearly 16% on Tuesday after a poor earnings report. The report, which was released a day early due to a technical error, stated that forecasts for 2025 net sales would be on the lower side of the previously reported range. Net sales for the previous quarter were far lower than expected as well. The CEO also remarked during the earnings call that the recovery of certain market segments will likely take longer than expected. Additionally, a report stated that the US is considering capping AI chip exports to certain countries to mitigate national security risks. This news, in conjunction with the ASML results, caused the majority of the semiconductor sector to decline on the day with Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) shedding roughly 5% on the day. The VanEck Semiconductor ETF (SMH) also dropped 5.4%.
Stocks rose on Wednesday as a set of positive earnings reports uplifted indices. Morgan Stanley rose 6.5% after beating earnings and revenue expectations for the third quarter. United Airlines also beat earnings forecasts and posted strong guidance, causing the stock to skyrocket over 12%.
Chip stocks rebounded on Thursday as investors were reassured after Taiwan Semiconductor (NASDAQ: TSM) and other chip manufacturers posted strong earnings. TSM soared nearly 10% by market close. A lower-than-expected jobless claims report also eased inflation concerns.
Indices continued to rise on Friday as more positive earnings reports were released. Netflix soared 11% after the company beat earnings and revenue estimates, and saw a 35% increase in ad-tier memberships during the third quarter.
Past Earnings Report:
Last week’s market results were strongly influenced by the numerous positive earnings reports. Roughly 80% of the companies listed on the S&P 500 have released better-than-expected earnings for the third quarter.
Looking Towards the Future
Upcoming Important Economic Events:
Monday: U.S. leading economic indicators
Wednesday: Fed Beige Book
Thursday: Initial jobless claims; S&P flash U.S. services PMI; S&P flash U.S. manufacturing PMI
Friday: Consumer sentiment (final)
Future Earnings Reports: