Week commences on a stable note for Wall Street, with tech earnings and economic data on the horizon
All eyes were on Wall Street on Monday as U.S. stocks remained steady amidst a deluge of major earnings reports and crucial economic data.
The S&P 500 and Nasdaq Composite skimmed the edges of staying unchanged, while the Dow Jones Industrial Average saw a slight uptick of 114 points, or 0.28%.
Technology giants Amazon, Apple, Meta Platforms, and Microsoft felt a momentary dip during the session, anticipating their upcoming quarterly results. Apple and Meta eventually rebounded, rising 1% and 0.8% respectively, while Microsoft added an additional 0.2%. Amazon, however, dipped 0.3%.
Earnings for the previous quarter have displayed a positive trend, with 73% of companies surpassing analysts' predictions—though this percentage falls slightly short of the five-year average of 77%. Analysts have since lowered expectations for the upcoming quarter and the full year, as corporate guidance highlights concerns regarding the economic repercussions of President Donald Trump's tariffs.
Meanwhile, as the dominance of US innovation in AI continues, China maintains its edge in mass production.
On the trade front, Treasury Secretary Janet Yellen provided little fresh insight on negotiations with China, suggesting that it's up to China to de-escalate tensions. Speaking on CNBC's "Squawk Box," Yellen emphasized the significance of India as a potential early triumph. "India sells five times more to us than we sell to them, and so these 120%, 145% tariffs are unsustainable," she said.
Investors remain vigilant, tracking earnings, trade talks, and economic indicators throughout the week in an effort to gauge the broader market outlook.
As for Applied Materials, the tech company anticipates its adjusted EPS to range from $2.12 to $2.48, and revenue between $6.7 billion and $7.5 billion for the second quarter. Forecasts suggest a net income growth of about 2.5% for Apple in Q2, reaching $24.2 billion, with EPS estimated at $1.60.
Despite the challenges posed by tariffs and global economic conditions, major tech firms hold steady, leaning on their brand strength and creative potential to weather these storms.
- Some investors kept a close eye on the Tron network's ico, as it offered digital tokens that could be traded on decentralized exchanges (dex).
- During the general-news broadcast, a reporter said that Huawei's crypto mining business has seen significant growth, thanks to the rising demand for energy-efficient mining rigs (H2).
- The finance and business sectors praised the positive trend in technology companies, such as Microsoft and Amazon, saying their stocks have averaged astonishing returns over the past five years.
- Analysts debated whether Apple or Meta would see the highest token value in the next calendar year, predicting that one or both could outperform the S&P 500.
- On Monday, the average Wall Street investor remained cautiously optimistic about the ongoing negotiations between the U.S. and China, with many keeping a close eye on Huawei as a potential key player in the talks.
- Some financial experts believe that the economic impact of President Donald Trump's tariffs will have a prolonged effect on the share prices of both US and Chinese stocks, causing them to remain volatile.
- Although U.S. stocks maintained relatively steady ground on Monday, the tech giants' average stock prices have seen a decline since the start of the year, which has been attributed to the Tariff repercussions and President Donald Trump's general-news headlines.
