Stocks @ Night provides an insightful recap of market movements and anticipated events, delivering key information that investors need to prepare for tomorrow’s trading. This past Tuesday, significant movements were noted among major corporations reaching unprecedented market valuations.
Both Apple and Microsoft prominently crossed the $4 trillion market cap threshold, solidifying their status in the elite group. Apple’s shares closed at $269, showing a remarkable 5.6% increase in October alone, and a robust 28% growth over the past six months. This marks Apple as the third company to reach this milestone, following Nvidia, which initially achieved this feat. Nvidia’s stock saw an impressive rise of 5% on Tuesday, contributing to an impressive 85% gain over the past six months.
In the airline sector, Boeing reported its latest earnings on Wednesday. Notably, the company’s stock has declined almost 6% since its last report three months ago and remains about 8% shy of its July high. CNBC’s coverage included a live interview with Boeing CEO Kelly Ortberg on “Squawk on the Street” during the morning segment.
Market participants are also closely monitoring the Federal Reserve, anticipating significant announcements set for 2 p.m. ET during “Power Lunch.” Ahead of this decision, yields on various government securities displayed little volatility, with the 10-year yield at 3.98% and shorter maturities ranging between 3.49% and 3.97%. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) showed a rather attractive dividend yield of 5.67%, while the SPDR Bloomberg High Yield Bond ETF (JNK) yielded 6.52%.
In telecommunications, Verizon struggled with its stock, which has decreased by 7% over the last three months and is currently 17% below its March 10 high, raising concerns among investors about long-term growth prospects.
Big tech companies are gearing up for earnings reports with Alphabet, Meta, and Microsoft all experiencing notable gains since their last reporting periods. Alphabet shares saw a near 39% surge, hitting new highs, while Microsoft has climbed nearly 6% but retains a mere 2% gap from its July high. Meta, despite a 5% increase over three months, remains down nearly 6% from its peak in mid-August.
The environment for manufacturers like Whirlpool has been challenging, with the stock plummeting over 30% year to date and poised for its fourth consecutive year of negative returns. The tariffs imposed this year have negatively impacted Whirlpool, although CEO Marc Bitzer expressed optimism following better-than-expected results, hinting at a potential turnaround as the company benefits from lower cost increases compared to its foreign rivals.
As further insights unfold, Caterpillar is in focus with its earnings report due Wednesday morning. With a significant revision in tariff-related cost estimates, the company has projected such expenses to rise to between $1.5 billion and $1.8 billion for the year. Remarkably, Caterpillar’s stock has soared by 45% year-to-date, rebounding nearly 100% from a 52-week low early in April to achieve recently observed highs.
Overall, market watchers are bracing for critical developments as high-profile earnings and federal monetary policy decisions loom on the horizon.
