Stock Market Today: Stocks Slip Ahead of Election Day, Fed Decision
Stocks opened lower on Monday and recovered but eventually ended in the red during the last regular trading session before Election Day in the United States Beneath the surface, one Magnificent stock 7 has taken one of the top spots in the world. Also coming is the decision of the Federal Open Market Committee on Thursday.
Starting with the news of one stock. Nvidia (NVDA) added 0.5% after the S & P Dow Jones said semiconductor stock it will take place Intel (INTC), which was down 2.9%, in the 30-stock Dow Jones Industrial Average since the open this Friday, November 8. Dan Burrows summarizes Everything you need to know about NVDA replacing INTC on the Dow.
Nvidia is now the No. 1 company. 1 in the world market capwhich surpasses apple (AAPL), which fell 0.4% behind Warren Buffett’s Berkshire Hathaway (BRK.B) disclosed the sale of about 25% of its position in AAPL, or 100 million shares.
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Buffett and Berkshire now own about 300 million shares of AAPL stock, with a market value as of September 30 of $69.9 billion. They reduced their ownership stake by 67.2% as of the end of Q3 2023.
The Oracle of Omaha and his firm, which also took down a large portion of them Bank of America (BAC), now sitting on a cash pile of $352.2 billion, according to Berkshire’s Q3 2024 earnings release.
On the last day of the US presidential campaign, the Dow closed down 0.6% to 41,794. The S&P 500 traded around the breakeven line for most of the session before dropping 0.3% to 5,712. The Nasdaq Compositemeanwhile, it lost 0.3% to close at 18,179.
Moving stocks
Tesla ( TSLA ) stock fell more than 2% on election night as the electric vehicle (EV) maker’s CEO played a surprising role in the Republican presidential campaign.
Indeed, TSLA extended its losing streak to six straight days – the longest since April – to deliver goods to the wrong place for the year.
“We believe a Trump presidency will be bad for the EV industry because of EV rebates and tax incentives,” Wedbush says. Daniel Ives. Ives sees Trump’s victory as a positive for TSLA, however, with some caveats.
“Tesla has unmatched size and scale in the EV industry, and this strength could give Musk and Tesla a clear competitive advantage in the non-EV environment, with China’s high tariffs likely to continue.” to push China’s low-cost EV players to flood the American market in the coming years,” says Ives.
In the case of Harris’ victory, Ives expects to EV tax rates it will remain “and eventually increase in 2025 as the goal of getting more US consumers to EVs will be a laser target in the Harris administration.”
Star Power ( CEG ) stock fell more than 12% after the clean energy producer beat both high and low expectations for its third quarter but was hit by the Federal Energy Regulatory Commission’s decision to reject the proposal nuclear power out. Amazon.com (AMZN).
Even after today’s decline, CEG stock has nearly doubled so far this year.
Viking Therapeutics (VKTX) stock was largely unchanged during the day’s trading, rising 7% at the open but ending the day down 13% after the biopharmaceutical company reported. good points for its weight loss pill.
Traders analyze the volatility of the options
Amid a relatively light day for economic data, the Census Bureau said this morning that orders for new manufactured goods they were down 0.5% month-on-month in September to $584.2 billion, in line with consensus forecasts. Factory orders fell 0.8% in August and have fallen in four of the past five months.
After a softer-than-expected October jobs report, futures traders are down 98% chance. The Federal Reserve will cut its interest rate by 25 basis points (bps) during the its meeting this weekaccording to CME Group’s FedWatch Tool.
The 10-year US Treasury yield reversed after weeks of gains and fell nine basis points to 4.302% from Friday’s close of 4.397%, setting a low the largest single day in two months. (Base point = 0.01%.)
Meanwhile, the ICE BofA MOVE Index (MOVE), a measure of bond market volatility, hit its highest level in a year on Monday, as investors shifted bets ahead of the election and the FOMC announcement.
We continue to track the progress of the campaign as it relates to your portfolio and your pocketbook our live polls blog.
Employment growth slows in September
Above economic calendardata from Bureau of Labor Statistics showed the US added just 12,000 jobs in October, below economists’ estimates for 113,000 new positions. Job growth for August and September was revised downward by a combined 112,000 jobs.
There has been a lot of noise in this report because of the recent hurricanes in Florida and Boeing (BA) labor strike. However, there were continued signs of stability and stability, “especially the unemployment rate with strong wage growth,” it says. Scott Andersonchief US economist at BMO Capital Markets.
In other economic matters, the Supply Management Agency (ISM) said its Manufacturing Purchasing Managers Index (PMI) fell to 46.5% in October from 47.2% in September.
The index has now marked a decline [readings below 50] with a performance of almost two straight years,” says the Wells Fargo Economist Tim Quinlan. “But the soft demand for asset replacement combined with some clarity in the post-election environment should support future spending plans.”
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