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U.S. Stocks Wobble Ahead of Big Tech Earnings

Published 24/10/2022, 15:06
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By Liz Moyer

Investing.com -- U.S. stocks were wobbling on Monday ahead of a busy week of earnings from big tech companies as well as automakers, airlines, and energy giants.

At 10:32 ET (14:32 GMT), the Dow Jones Industrial Average was up 184 points or 0.6%, while the S&P 500 was flat and the NASDAQ Composite was down 1%.

Microsoft Corporation (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) will kick off big tech’s week of earnings on Tuesday. Later in the week, Apple (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META) will report.

Shares of Chinese tech stocks tumbled after Xi Jinping took on a third term and surrounded himself by longtime loyalists in the party leadership. Shares of Alibaba Group Holdings Ltd ADR (NYSE:BABA) were down 18%, while Baidu Inc (NASDAQ:BIDU) was also down 18%.

Stocks notched their best week in months last week, with the Dow rising 4.9%, while the tech-heavy Nasdaq rose 5.2% for the week. Growth stocks have been hammered by fear of a coming recession, but stocks turned around Friday after a report that Federal Reserve officials were thinking about easing off the aggressive pace of rate increases after their November meeting.

Treasury yields, which have touched multi-year highs in recent days, eased back on Monday. The 10-year Treasury yield was near 4.28%.

The PMI manufacturing reading for October was 49.9, compared with expectations for 51.0. The PMI services reading was 46.6, versus expectations of 49.2. The composite index was 47.3 compared with expectations of 49.3.

Oil rose. Crude Oil WTI Futures rose 0.7% to $85.67 a barrel, while Brent Oil Futures crude rose 0.8% to $92.09 a barrel. Gold Futures fell 0.1% to $1653.

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