2024.10.18 Markets Wrap: S&P 500 and Dow Achieve Record Highs, Marking 2024's Longest Winning Streak

Stock Market Wrap

Markets Wrap: S&P 500 and Dow Achieve Record Highs, Marking 2024's Longest Winning Streak

Oct 18, 2024

Market Overview:

The S&P 500 and the Dow Jones Industrial Average both reached record highs on Friday, marking six consecutive weeks of gains. The S&P 500 closed up 23 points, or 0.40%, at 5,864.67, while the Dow gained 36 points, or 0.09%, finishing at 43,275.91. The Nasdaq Composite surged 115 points, or 0.63%, to end at 18,489.55, buoyed by strong earnings from Netflix.

Overall, market sentiment remained positive, with over 75% of S&P 500 companies exceeding earnings expectations. Analysts suggest that despite potential volatility surrounding the upcoming U.S. presidential election, stocks may continue to rally through November. This optimism is largely attributed to investor confidence in Republican nominee Donald Trump, whose policies are viewed as more business-friendly.

Technology giants are driving the earnings growth, with the “Magnificent Seven” expected to report an 18% increase in profits for Q3. While other firms in the index anticipate a modest 1.8% earnings increase, broader economic indicators, such as stronger retail sales, suggest resilience in consumer spending.

Corporate News:

Netflix Inc. saw a 10% increase after exceeding Wall Street’s earnings and revenue estimates for Q3, along with a 35% jump in ad-tier memberships.
Procter & Gamble Co. reported better-than-expected earnings, although its revenue fell short of estimates, marking a second consecutive quarter of sluggish sales growth.
American Express Co.‘s shares fell by 3% after the company revised its revenue forecast downward.
Lamb Weston Holdings Inc. surged after activist investor Jana Partners disclosed a 5% stake, aiming to push the company to consider strategic alternatives.
SLB warned of declining spending growth from oil explorers amid lower crude prices.
Ally Financial Inc.‘s shares dropped following a more pessimistic outlook on loan charge-offs and a lower net interest margin forecast.
Verizon Communications Inc. announced a $1 billion acquisition of spectrum licenses from US Cellular Corp.
Warren Buffett sold additional shares of Bank of America Corp. after the lender’s share repurchases nudged his stake above the 10% regulatory threshold.
CVS Health Corp. appointed David Joyner as the new CEO, concluding a turbulent leadership period for Karen Lynch.
BMW AG is recalling nearly 700,000 vehicles in China due to coolant pump defects, amid ongoing issues with other vehicle faults.

*All data in this blog is sourced from reputable media outlets such as CNBC, Yahoo Finance, and Bloomberg. If any content infringes on copyright, please notify us for immediate removal.