Where Is the Market Heading?
5 Things to Know Before the Stock Market Opens Tuesday
What is The Market Hot Stocks?
1. New Fire Streak
- The S&P 500 surged by 1.08% on Monday, marking its best day since early June as technology shares made a strong comeback. The Nasdaq Composite rose by 1.58%, and the Dow Jones Industrial Average added 127.91 points, or 0.32%.
- Major tech names like Nvidia gained 4.8%, recovering some of last week's losses, while Meta and Alphabet both saw over 2% increases. However, CrowdStrike experienced a significant dropping 13.5%, building on last week's nearly 18% loss due to the global IT outage, making it the worst performer in the S&P 500.
2. Hot Stocks to Go
- General Motors (GM) beat Wall Street's earnings expectations for the second quarter on Monday and raised several key financial targets for the year. The company now expects full-year adjusted earnings before interest and taxes (EBIT) between $13 billion and $15 billion, or $9.50 and $10.50 per share, up from the previous guidance of $12.5 billion to $14.5 billion, or $9 to $10 per share.
- GM's North American operations, especially truck sales, drove the strong quarter. However, GM did not achieve the anticipated return to profitability in China, where it has faced significant declines. While EV deliveries increased by 40% year-over-year, they only accounted for 3.2% of sales in the quarter. Additionally, GM indefinitely delayed production of its Origin autonomous vehicle.
3. All Eyes on Kamala
- Vice President Kamala Harris raised record-breaking campaign cash on Monday, following President Joe Biden's withdrawal from the 2024 presidential race and his endorsement of her. Since Sunday afternoon, Harris and the Democratic Party have garnered approximately $250 million in online donations and major donor commitments.
- The campaign noted that over 888,000 grassroots donors made contributions in the past 24 hours, with 60% making their first donation of the 2024 cycle. Harris has also received key endorsements from prominent figures such as House Speaker Nancy Pelosi, senators, governors, and unions. NBC News projected late Monday that Harris had secured endorsements from a majority of the Democratic Party's pledged convention delegates, which is crucial for becoming the party's nominee.
4. Tech Has It Their Own Way
- Cybersecurity firm Wiz has decided to walked away from a $23 billion deal to be acquired by Google and will pursue an IPO instead. This would have been Google's largest-ever acquisition. Wiz abandoned the deal due to antitrust and investor concerns, according to a source familiar with the matter.
- Wiz's cloud security products would have bolstered Google's competitiveness against Microsoft in the security software market, especially as the company aims to capture more business during the AI boom. This news comes as Alphabet, Google's parent company, is set to report earnings after the bell on Tuesday.
5. Comcast Mixed Emotions
- Comcast reported mixed earnings results on Tuesday, beating profit estimates but missing on revenue. The company faced tough year-over-year comparisons for its film studio and theme parks. Revenue fell nearly 3% to $29.69 billion compared to the same period last year, with Universal Pictures studio segment revenue dropping 27% from last year.
- Despite this, Comcast had one of its best theatrical quarters ever in 2023 with the releases of "Super Mario Bros." and "Fast X." NBCUniversal's streaming service Peacock saw a 38% increase in paid subscribers year-over-year, while the TV business posted $6.32 billion in revenue, a 2% increase from last year.
Conclusion
As investors brace for another busy day in the stock market, the strong performance of major indices, robust earnings from General Motors, Kamala Harris's impressive fundraising, Wiz's strategic shift, and Comcast's mixed earnings results are key factors to watch. These developments could significantly influence market sentiment and trading activity as the day progresses.