Dow drops 300 points, Nvidia, Apple close at fresh records

Stocks slipped on Monday as the 10-year Treasury yield rose to its highest level since July and investors braced for a packed week of top-tier earnings that could drive or drag on a record-setting rally.

The S&P 500 (^GSPC) dropped almost 0.2%, coming off its closing all-time high on Friday. The Dow Jones Industrial Average (^DJI) lost more than 300 points, snapping a three-day winning streak, while the tech-heavy Nasdaq Composite (^IXIC) closed about 0.2% higher.

Interest rate sensitive stocks like Real Estate dropped during during the session as the 10-year Treasury moved up 10 basis points to 4.18%.

Meanwhile AI chip heavyweight Nvidia (NVDA) rose more than 4% to a new record, while iPhone maker Apple (AAPL) eked out a record close.

Streaming giant Netflix (NFLX) also rose to a record high during Monday’s session.

Yahoo Finance’s Ben Werschkul reports:

A wild weekend on the campaign trail underlined two key trends of the 2024 campaign cash race: Kamala’s Harris’s outsized fundraising prowess and Donald Trump’s reliance on an array of friendly billionaires.

Vice President Harris’s campaign out-raised Trump by over 3 to 1 in September to cap off a less than three-month sprint as a candidate that saw her raise an unprecedented $1 billion.

Trump’s own formal operation has lagged behind. But the former president and his allies have tried to make up the difference with their own flood of billionaire donations directed to outside groups supporting his candidacy.

Read more here.

Dan Howley reports:

The smartphone industry is banking on AI to reaccelerate device sales after years of slowing growth. But to do that, it’ll have to give consumers a reason to pony up for new phones more often.

Qualcomm (QCOM) is aiming for its latest smartphone chips to do just that, adding a number of new on-board AI capabilities it says will allow you to do things like virtually adjust the lighting in your video calls in real-time and allow your device to recognize real-world objects without having to access the web.

On Monday, Qualcomm shares were down almost 2%.

Read more here.

An early trend is emerging through the first part of quarterly earnings reports.

For the first time since 2020, companies that beat Wall Street’s expectations on both revenue and earnings are seeing larger stock moves than companies that miss on both metrics.

Through earnings from 71 companies in the S&P 500, companies that beat expectations on both metrics are seeing an average stock gain of 3.15% over the next day, above the 1.49% average seen since 2000, per research from Bank of America. Meanwhile, companies that miss on revenue and earnings estimates are seeing a 2.61% decline in their stock the next day, below the average since 2000 of 2.44%.

“As large-cap Tech earnings near, the potential for large earnings reactions to continue strengthens the case for owning Tech vol through the end of October,” Bank of America Securities team of strategists wrote in a note on Monday morning.

Morgan Stanley chief US equity strategist Mike Wilson opined on the topic in a note to clients on Sunday night as well.

“Bottom line, dispersion between stocks and even within sectors is likely to remain high as the market appears to be delineating clearly between earnings beats and misses,” Wilson wrote.

Pras Subramanian reports:

Investors are expecting more upbeat results from GM (GM) when the automaker reports earnings on Tuesday after the company raised its guidance for a second time earlier this year on the back of decent US sales. Questions around GM’s EV business and inventory management, however, will be in focus.

For the third quarter, GM is expected to report revenue of $44.69 billion per Bloomberg consensus, sequentially lower than last quarter’s nearly $48 billion, but to be expected given the second quarter’s historically strong sales. GM’s Q3 revenue is expected to be higher than a year ago.

Read more here.

Netflix (NFLX) shares hit all-time highs on Monday, extending gains from last week when the streaming giant posted a better-than-expected quarterly print.

The stock briefly touched a new high of $773 during the session before paring gains.

Gold and silver gains show no sign of slowing down as investors continue to pour into precious metals.

Gold futures (CG=F) rose 0.8% on Monday to touch an intraday high above $2,750 per ounce. Silver futures (SI=F) gained more than 3% to briefly top $34 per ounce, a 12-year high.

Both metals have outperformed the broader markets. Gold bullion is up roughly 26% and silver has risen nearly 35% since the start of 2024, compared with the S&P 500’s (^GSPC) gain of 19%.

Central banks have been buying up the yellow metal, and investors have been increasingly entering physically backed gold ETFs amid expectations of lower interest rates.

Yahoo Finance’s Alexandra Canal reports:

Disney (DIS) plans to announce its next CEO in early 2026, the first timeline the company has publicly given for appointing a successor to current chief Bob Iger.

The media giant made the announcement on Monday while simultaneously revealing that current board member and former Morgan Stanley (MS) CEO James Gorman will serve as the board’s new chairman, effective Jan. 2, 2025. He will exit his role as executive chairman at Morgan Stanley on Dec. 31.

“A critical priority before us is to appoint a new CEO, which we now expect to announce in early 2026,” Gorman said in a press release. “This timing reflects the progress the Succession Planning Committee and the Board are making, and will allow ample time for a successful transition before the conclusion of Bob Iger’s contract in December 2026.”

Read more here.

Apple’s (AAPL) stock was on pace to eke out a new high on Monday after closing at a record on Friday.

Shares of the iPhone maker rose slightly to hover near $235.80 each.

On Friday, the stock closed at a record $235. Year to date, Apple is up more than 22%.

Yahoo Finance’s Jennifer Schonberger reports:

Dallas Fed president Lorie Logan reiterated on Monday that she sees policymakers lowering interest rates “gradually”. She cited an increased risk that the job market could worsen and a danger that inflation could still heat up again.

“If the economy evolves as I currently expect, a strategy of gradually lowering the policy rate toward a more normal or neutral level can help manage the risks and achieve our goals,” Logan said in a speech at the Securities Industry and Financial Markets Association’s annual meeting in New York.

Logan said the economy is “strong and stable” but that “meaningful uncertainties” remain in the outlook.

Read more here.

Nvidia (NVDA) stock climbed more than 1.5% early on Monday, helping mitigate a bigger decline in the Nasdaq Composite (^IXIC).

Shares of the AI chip heavyweight rose to hover above $140 each, briefly touching an intraday high of $141.

The Nasdaq was trading near the flat line as Nvidia rose.

The major averages opened slightly lower on Monday as investors awaited a fresh batch of earnings this week.

The S&P 500 (^GSPC) dropped roughly 0.2%, coming off a fresh all-time closing high, while the Dow Jones Industrial Average (^DJI) edged 0.1% lower. The tech-heavy Nasdaq Composite (^IXIC) shed 0.2%.

A fresh batch of quarterly results will roll in this week, including from Tesla (TSLA) on Wednesday. General Motors (GM), Coca-Cola (KO), American Airlines (AAL), and UPS (UPS) are among several other big names on the earnings docket this week.

Boeing (BA) stock jumped as much as 4.5% in Monday’s premarket on news that the aircraft manufacturer has reached a tentative labor deal with workers who have been on strike for more than one month.

The contract would raise pay 35% over four years and increase Boeing’s 401(k) contributions, but it would not reinstate pension plans — a major union demand. Analysts estimate the contract could lead to an additional $1 billion in wage-related expenses for the company.

The union will vote on the contract on Wednesday, the same day Boeing reports its quarterly earnings. Analysts expect the plane maker to report a loss per share of $1.50, according to Bloomberg consensus estimates.

Boeing has struggled since an airplane part ripped off one of its 737 Max 9 planes during a flight in January. Shares are down over 40% this year.

Of the Wall Street analysts covering the stock tracked by Bloomberg, some 19 recommend buying shares, while 11 have a Hold rating, and three say to sell. On average, analysts see Boeing shares rising to about $192 each over the next 12 months, implying a more than 20% gain.