Dow Jones, S&P 500 rise to record highs, Nasdaq jumps while Nvidia rises

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  Mon Oct 14, 2024 12:15 PM EDT

  The Fed’s Kashkari said “modest” rate cuts are “likely” in the coming quarters

  Yahoo Finance’s Jennifer Schonberger reports:

  Minneapolis Fed Chairman Neel Kashkari said Monday that it is “likely” the central bank will make a “modest” rate cut in the “coming quarters.”

  Monetary policy, he said during his speech in Argentina, remains “generally restrictive,” although he is unclear how restrictive that is.

  The labor market remains strong, he added, noting that recent data showed a rapid weakening of that market does not appear to be “immediate.”

  “It therefore seems likely that further modest cuts in our policy rate in the coming quarters will be appropriate to achieve both sides of our mandate,” Kashkari said.

  Read more here.

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  Mon Oct 14, 2024 11:36 AM EDT

  Dow and S&P 500 maintain near-records as tech and utilities take the lead

  Technology and utility stocks rose Monday, pushing the Dow Jones Industrial Average (^DJI) up 0.3% and the S&P 500 (^GSPC) up 0.6%. Both major averages were on track to end at a new record.

  The tech-heavy Nasdaq Composite (^IXIC) rose the most among the major averages, up 0.7%.

  

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  Mon Oct 14, 2024 11:33 AM EDT

  SoFi shares rise on $2 billion Fortress deal to expand lending platform

  Shares of SoFi Technologies (SOFI) rose as much as 9% after the online lender announced a $2 billion deal with Fortress Investment Group to expand its lending platform business. The segment refers pre-qualified borrowers to lenders and connects lenders with borrowers.

  This move reflects SoFi’s strategy to diversify from its roots in student loan refinancing.

  “SoFi’s lending platform business is an important part of our strategy to meet the financial needs of more members and diversify into less capital-intensive and more fee-based revenue sources,” SoFi CEO Anthony Noto said in a statement.

  Of the Wall Street analysts covering the stocks covered by Bloomberg, only six recommend buying the stock, while 10 have a Hold rating and three have a Sell rating. The stock is up nearly 20% year-over-year, but still far from its all-time intraday market high of nearly $27 at its 2021 IPO.

  Analysts see the stock falling to $8.91 over the next 12 months, according to data from Bloomberg.

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  Mon Oct 14, 2024 10:36 AM EDT

  Dow is entering green territory and almost has a record

  The Dow Jones Industrial Average (^DJI) pushed its way into green territory at 10:30 a.m. ET, hovering at new intraday record highs. The blue chip index was down as much as 0.3% shortly after the market opened, following a record close on Friday.

  Meanwhile, the S&P 500 (^GSPC) rose 0.6% on Monday, on its way to a new record high.

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  Mon Oct 14, 2024 10:13 AM EDT

  TSMC shares hit record highs, rejoining the $1 trillion club

  Nvidia (NVDA) supplier TSMC (TSM) saw shares of its US-listed stock rise more than 1% in early trading, with the stock hitting a new record intraday price of $193.96 per share and rebounding joined the $1 trillion club.

  TSMC shares hit a record high above $193 earlier in July after the Taiwanese contract chipmaker reported second-quarter earnings. That surge briefly pushed the market cap above $1 trillion before stock gains fell. The stock fell back to earth as investors weighed high valuation multiples, geopolitical risks and concerns about demand for AI.

  TSMC last week reported third-quarter revenue of 759.7 billion new Taiwan dollars ($23.6 billion). That was better than the expected NT$748.3 ($23.3 billion) according to Bloomberg data, as well as the company’s previous expectations of $22.4 billion to $23.2 billion.

  About 23 Wall Street analysts covering stocks covered by Bloomberg recommend buying TSMC stock, while only one analyst has a Hold rating. Analysts see shares rising to $216.59 each over the next 12 months, according to Bloomberg data.

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  Mon Oct 14, 2024 at 10:00 AM EDT

  Boeing drops more than 2% as aircraft manufacturers plan to cut 10% of workforce, strike enters fifth week

  Shares of Boeing (BA) fell more than 2% as investors doubted the future of the crisis-hit aircraft maker amid job cuts and a strike now in its fifth week.

  On Friday, the company said it will cut 17,000 jobs, or about 10% of its workforce.

  “In addition to navigating our current environment, recovering our business will require difficult decisions and we will need to implement structural changes to ensure we can remain competitive and provide for our customers in the long term,” CEO Kelly Ortberg said in a release to employees on Boeing’s website. website on Friday.

  An ongoing strike by Boeing’s largest union, the International Association of Machinists and Aerospace Workers (IAM), is proving costly for the company on several fronts.

  S&P Global estimates the cost of the strike that began on September 1 at about $1 billion per month. Last week, talks between Boeing and IAM broke down, with the company withdrawing its contract proposal.

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  Mon Oct 14, 2024 9:46 AM EDT

  Nvidia is up 2% and hovering near a record

  Nvidia ( NVDA ) stock rose more than 2% at the open on Monday, surpassing its June all-time high of $135.58.

  The stock was a few dollars away from its all-time intraday high, just past $140.76.

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  Mon Oct 14, 2024 9:30 AM EDT

  S&P 500 looks for new record, Dow falls as focus shifts to earnings figures

  The major averages got off to a mixed start Monday as investors shifted their focus to major banks’ upcoming earnings and other major company quarterly results.

  The S&P 500 (^GSPC) rose about 0.3% to hit a new record high. On Friday, the broader index ended above 5,800 for the first time.

  The tech-heavy Nasdaq Composite (^IXIC) rose 0.5% shortly after Monday’s bell, while the Dow Jones Industrial Average (^DJI) fell 0.2% from Friday’s close.

  Earnings season is in full swing this week, with Citi (C), United Airlines (UAL), AI chip equipment maker ASML (ASML), Netflix (NFLX) and American Express (AXP) expected to report.

  Oil futures fell more than 2% after OPEC cut its demand forecast for 2024 and 2025. Traders also reacted this weekend to a lack of details from China’s finance minister on any major new stimulus spending.

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  Mon Oct 14, 2024 9:16 AM EDT

  Nvidia shares rank high and number one as the most valuable company, ahead of Apple

  Shares of Nvidia ( NVDA ) rose 1% in premarket trading to $136.22, putting the chip giant on track to surpass its previous record closing price of $135.58, posted in June.

  The AI ​​chipmaker’s shares posted significant gains in October following a massive $6.6 billion funding round for ChatGPT maker OpenAI, much of which will be funneled back to Nvidia. AI leaders, including Nvidia CEO Jensen Huang, have cited furious demand for the company’s latest Blackwell chips. The stock is up 8% in the past week.

  Thanks to Nvidia’s gains, the company is on track to reclaim the rankings as the world’s most valuable company, in terms of market capitalization. It currently holds the second position, behind Apple (AAPL). The chipmaker’s market capitalization was $3.3 trillion on Monday, while Apple’s was $3.46 trillion. Apple, Microsoft (MSFT) and Nvidia have swapped places as the three largest companies over the past year.

  Nvidia will announce its earnings figures on November 19. Wall Street analysts expect the company to report revenue of $33 billion, up 82% from the previous year, according to Bloomberg consensus estimates. About 90% of those who cover the stock and are followed by Bloomberg recommend buying Nvidia stock.