Stock Market Continuously Setting New Highs on Wall Street.
Last week's commencement of earning reports from companies has traders excited on Wall Street, hoping for more positive quarters. Optimism is at an all-time high, pushing the Dow and S&P 500 to record-breaking peaks. However, Boeing's financials were met with misfortune.
After a promising start to the quarterly earnings season, US markets saw the Dow Jones Industrial Average surpass 43,000 points for the first time ever. The broader S&P 500 also hit an all-time high. "It's not like previous earnings seasons where expectations were sky-high and companies had a tough time meeting them," Kevin McCullough of Natixis Investment Managers Solutions commented. Lower expectations make it easier for investors to view quarterly reports favorably.
The Dow climbed 0.5 percent to close at 43,065 points. The S&P 500 rose 0.8 percent to 5,859, and the tech-heavy Nasdaq gained 0.9 percent to 18,502. Tech companies and heavyweights like Johnson & Johnson and Procter & Gamble will report their earnings in the following days, maintaining market optimism. Bank earnings last Friday boosted this positivity, according to Michael James, equity chief at Wedbush.
Conversely, Boeing underperformed. The ailing aircraft manufacturer is projected to report a loss of around $9.97 per share for the third quarter, significantly surpassing analysts' expectations due to a strike and other factors. This prediction is a result of the restructuring plan announced by new CEO Dave Calhoun, wrote Cowen analyst Cai von Rumohr. The restructuring will affect Boeing's balance sheet for the next two years, but increased cash flow is expected by 2027. The stock dropped by 1.2 percent.
Trump's chances influencing crypto prices
Rumors of China's stimulus package to boost its economy were met with skepticism by market analysts. "The announcement lacked convincing details," criticized Tamas Varga from brokerage house PVM. Subsequently, investors lost confidence in Chinese assets, resulting in a decline of up to 2.7 percent for iShares and KraneShares ETFs on the US market.
A drop in consumer interest in China was reflected by weak inflation data, which negatively affected commodity investments. The price of US oil WTI decreased by 2.1 percent to $73.99 per barrel (159 liters).
Bitcoin and Ethereum saw an increase in demand, rising by 4.7 and 6.8 percent, respectively. The rise in cryptocurrencies can be attributed to the possibility of further interest rate cuts in the US and the upcoming presidential elections. Republican candidate Donald Trump's victory could potentially drive Bitcoin's value from its current level of around $66,000 to a new record high of $74,000, according to investment strategist Jürgen Molnar of brokerage firm RoboMarkets. Should Trump win, the $100,000 mark may not be far off. Trump had previously pledged to become a "crypto president" and establish a US Bitcoin reserve if elected.
The joy on Wall Street continued as the tech-heavy Nasdaq also reached a new record high, increasing by 0.9%. Despite Boeing's underperformance and projected loss, traders remain optimistic about earnings reports from tech companies like Johnson & Johnson and Procter & Gamble.
Investment strategist Jürgen Molnar of brokerage firm RoboMarkets believes that should Republican candidate Donald Trump win the upcoming elections, Bitcoin's value could surge to a new record high of $74,000, with a potential $100,000 mark within reach, given Trump's past commitment to becoming a " crypto president" and establishing a US Bitcoin reserve.
