US stocks dip as major week of earnings awaits
The S&P 500 slid 0.2% on Monday, an inauspicious start after posting its longest streak of weekly gains in 2024. The Nasdaq 100 notched a 0.2% gain during the last minutes of trading, while the Russell 2000 fell 1.6%.
This week, 112 S&P 500 companies are set to release third quarter earnings. So far, the majority of S&P 500 companies have reported earnings that beat analyst expectations, lifting the market for the past two weeks.
Bond yields jumped on Monday. The yield on the two-year Treasury note was up eight basis points to 4.03%, while the yield on the 10-year note rose 11 basis points to 4.19%.
Real estate was the biggest laggard among major S&P 500 sectors, losing 2.1%. None of the sector’s constituents rose. Higher long-term interest rates usually serve as a reference point for mortgage rates, which separately sent rate-sensitive homebuilder stocks tumbling.
The technology sector was the only major sector that advanced on Monday, up 0.5%, largely thanks to Nvidia’s 4.1% gain. The chipmaker was the best-performing Magnificent Seven stock and outperformed the rest of the semiconductor sector, after rising nearly 20% so far this month.
Among other individual stocks, shares of Kenvue surged 5.5% after the Wall Street Journal reported that activist investor Starboard Value has taken a sizable stake in the household product maker. Boeing rose 3.1% as the company reached a new contract proposal with its machinists’ union over the weekend, which could potentially put an end to the workers’ strike. Finally, Spirit Airlines had its best day on record with a 53% gain after striking a deal with a creditor to give the airline more time to refinance some of its debt.
