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Big Q3 Earnings Headed Our Way: MSFT, GOOGL & More
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Markets closed down back where they traded earlier in the pre-market session — with the exception of the Nasdaq, which closed higher for the day. The self-policing of high-bond-yield wariness is keeping equities from jumping ahead, even amidst a better-than-expected Q3 earnings season thus far adding some positive sentiment — or at least dimming fears of a near-term recession. The Dow slipped -190 points today, -0.58%, while the Nasdaq gained +34 points, +0.27%. The S&P 500 split the difference, -0.17%, while the small-cap Russell 2000 lost -0.69%.
The key phrase there is “Q3 earnings season thus far”… Some of the biggest companies on the planet, including a few members of the formerly-known-as FAANG — Meta PlatformsMETA, Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) , Alphabet GOOGL — as well as Microsoft (MSFT - Free Report) , Intel (INTC - Free Report) and many more are issuing quarterly reports this week. The basic hugeness of these firms, many of which also constitute the “Magnificent 7” stocks that rose to year-to-date highs on prospective strength in the A.I. space, mean they can change the trajectory of earnings season all by themselves.
Speaking of Intel, shares there took a -3% hit today when it was reported NVIDIA (NVDA - Free Report) — #1 of the Magnificent 7 — is planning to produce its own ARM-based chips, which analysts consider a direct challenge to Intel’s market share. NVIDIA was up +4% on the news, and ARM Holdings (ARM - Free Report) gained +6%. It’s these sorts of narratives giving the Nasdaq index the upper-hand on trading days like today.
Bond yields always seem to claim a paragraph or so in this column these days, and I suppose this afternoon is no exception: the 10-year bond yield, which had breached +5% momentarily prior to the opening bell on the stock market, pulled back a somewhat noteworthy 15 basis points (bps). The 2-year, which looked willing to give up the inversion of the yield curve earlier, only came down to +5.06% — a scant 5 bps or so. For certain, bond yields are doing some of the Fed’s work for them, curbing any excessive appetite in the equities market.
Aside from Microsoft and Google reporting earnings tomorrow after the close, we also expect to hear from GM (GM - Free Report) , GE (GE - Free Report) , Coke (KO - Free Report) , Visa (V - Free Report) and Texas Instruments (TXN - Free Report) . You can tell a lot about the economic health of the U.S. just by tracking those companies alone. Continued positive results would keep some upward pressure on stocks, but it’s unclear how much. In normal times, with bond yields so low as to be easily dismissed, strong earnings numbers would send markets on an end-of-the-year surge.
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Big Q3 Earnings Headed Our Way: MSFT, GOOGL & More
Markets closed down back where they traded earlier in the pre-market session — with the exception of the Nasdaq, which closed higher for the day. The self-policing of high-bond-yield wariness is keeping equities from jumping ahead, even amidst a better-than-expected Q3 earnings season thus far adding some positive sentiment — or at least dimming fears of a near-term recession. The Dow slipped -190 points today, -0.58%, while the Nasdaq gained +34 points, +0.27%. The S&P 500 split the difference, -0.17%, while the small-cap Russell 2000 lost -0.69%.
The key phrase there is “Q3 earnings season thus far”… Some of the biggest companies on the planet, including a few members of the formerly-known-as FAANG — Meta Platforms META, Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) , Alphabet GOOGL — as well as Microsoft (MSFT - Free Report) , Intel (INTC - Free Report) and many more are issuing quarterly reports this week. The basic hugeness of these firms, many of which also constitute the “Magnificent 7” stocks that rose to year-to-date highs on prospective strength in the A.I. space, mean they can change the trajectory of earnings season all by themselves.
Speaking of Intel, shares there took a -3% hit today when it was reported NVIDIA (NVDA - Free Report) — #1 of the Magnificent 7 — is planning to produce its own ARM-based chips, which analysts consider a direct challenge to Intel’s market share. NVIDIA was up +4% on the news, and ARM Holdings (ARM - Free Report) gained +6%. It’s these sorts of narratives giving the Nasdaq index the upper-hand on trading days like today.
Bond yields always seem to claim a paragraph or so in this column these days, and I suppose this afternoon is no exception: the 10-year bond yield, which had breached +5% momentarily prior to the opening bell on the stock market, pulled back a somewhat noteworthy 15 basis points (bps). The 2-year, which looked willing to give up the inversion of the yield curve earlier, only came down to +5.06% — a scant 5 bps or so. For certain, bond yields are doing some of the Fed’s work for them, curbing any excessive appetite in the equities market.
Aside from Microsoft and Google reporting earnings tomorrow after the close, we also expect to hear from GM (GM - Free Report) , GE (GE - Free Report) , Coke (KO - Free Report) , Visa (V - Free Report) and Texas Instruments (TXN - Free Report) . You can tell a lot about the economic health of the U.S. just by tracking those companies alone. Continued positive results would keep some upward pressure on stocks, but it’s unclear how much. In normal times, with bond yields so low as to be easily dismissed, strong earnings numbers would send markets on an end-of-the-year surge.
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