Stock market's main index, the Dow, experiences a decline, while tech companies reach new record highs.
American stock markets concluded with contrasting results as the weekend approached. The Nasdaq observed record highs during the day, yet the Dow Jones recorded a subsequent day lag for the second time in a row. Market participants are primarily attentive to the influx of corporate earnings, with McDonald's encountering a hurdle.
The enhancement of U.S. Treasury bonds' security induced the Nasdaq's growth. The Nasdaq Composite appreciated up to 1.5%, reaching a maximum of 18,690 points before closing 0.6% higher at 18,518 points. The comprehensive S&P 500 maintained its day-ending position virtually unchanged at 5,808 points. Nonetheless, the Dow Jones Industrial Average dipped 0.6% to end at 42,114 points, weakened by losses in heavyweight performers such as Goldman Sachs and McDonald's.
The 10-year U.S. Treasury bonds yield reversed its upward pattern, concluding at 4.218%. Higher yields render bonds more alluring than stocks, given their low-risk identity as an asset class. "The ascent of Treasury yields has ceased," stated Ross Mayfield, strategist at financial institution Baird. "This offers relief to equity investors, allowing them to center on the predominantly favorable corporate earnings."
Deckers and Centene's popularity
Investors demonstrated interest in shares of U.S. footwear manufacturer Deckers Outdoor, recording a surge of approximately 11% to around $168. Analysts at British bank Barclays commended Deckers for its successful introduction of the Hoka brand in its global expansion stage. Furthermore, the Ugg brand remains innovative and occupies a prime position within the current trend for lifestyle footwear.
Centene, a health insurance provider, and Western Digital, a storage chip manufacturer, also experienced a growth of around 4% each due to positive earnings data.
Conversely, shares of regional bank New York Community Bancorp suffered a decline of more than 8% after disclosing a loss of $0.79 per share during the third quarter, contrasting a gain of $0.81 per share in the same period last year. NYCB anticipates recuperating its profitability only by 2026, which negatively influenced its commercial real estate lending domain.
Oil prices escalate again
Individual stocks saw Capri, parent company to Michael Kors, becoming prominent. A U.S. judge inhibited the $8.5 billion acquisition of the luxury company by handbag manufacturer Tapestry. Capri's shares plummeted nearly 49%, while Tapestry's shares skyrocketed nearly 14%.
McDonald's persisted in its downward spiral, decreasing nearly 3%. The number of Salmonella-related illnesses at the quick-service restaurant chain in the U.S. has surged to 75, with at least 22 individuals hospitalized, according to the FDA.
Once more, oil prices reclaimed the spotlight in the commodities market due to ongoing Middle East tensions. Both North Sea oil Brent and US oil WTI rose by around two percent to 75.98 and 71.72 dollars per barrel, respectively. Over the course of the week, the rate escalated by more than one and a half percent. Uncertainty looms regarding Israel's reaction to an Iranian rocket attack in early October. Speculation persists that Iran's oil infrastructure may be targeted, potentially triggering supply concerns for several weeks. Investors currently harbor expectations for the resumption of negotiations on a ceasefire and the liberation of hostages in the Gaza Strip in the near future.
The rise in oil prices influenced various sectors, including the stock market. On Wall Street, the Dow Jones Industrial Average was affected by losses in heavyweight performers such as Goldman Sachs and McDonald's.
Despite McDonald's encountered challenges due to Salmonella-related illnesses, the Nasdaq Composite, which includes tech giants like Microsoft and Apple, managed to record record highs during the day.
