Nasdaq hits record high amid key earnings reports

The Nasdaq Composite reached a new all-time high on Tuesday as investors braced for key corporate earnings releases, including those from several prominent tech companies.

The tech-heavy Nasdaq climbed 0.78 per cent, closing at a record 18,712.75. The S&P 500 edged up 0.16 per cent, finishing at 5,832.92. Meanwhile, the Dow Jones Industrial Average lagged, dropping 154.52 points, or 0.36 per cent, to close at 42,233.05.

Alphabet, Snap, Reddit, Chipotle, and Advanced Micro Devices are set to release their quarterly results after the market closes. Tech giants Meta Platforms and Microsoft are scheduled to report on Wednesday, followed by Apple on Thursday.

Ahead of these earnings announcements, Meta's shares rose 2.6 per cent, while Alphabet saw a 1.7 per cent increase on Tuesday.

This week is expected to be the busiest of the earnings season, with over 150 S&P 500 companies slated to report by Friday’s close.

Looking at the S&P 500 sectors, only Communication Services and Technologies finished the day in the green, with Communication Services up by 1.56 per cent. In contrast, Utilities lagged behind, falling by 2.13 per cent.

Traders also kept a close watch on Treasury yields, as the benchmark 10-year Treasury yield reached its highest level since July.

In company news, Snap reported third-quarter results on Tuesday that exceeded expectations for both revenue and earnings, although it provided a cautious outlook for the fourth quarter. Shares surged more than 10 per cent in after-hours trading.

JetBlue Airways' stock plummeted 17 per cent after the company projected a larger-than-expected revenue decline for 2024. It anticipates fourth-quarter revenue to drop by 3 per cent to 7 per cent, while analysts polled by LSEG expect a decrease of 1.4 per cent.

Xerox shares fell 17.4 per cent after the company’s third-quarter results fell short of Wall Street expectations. Xerox also lowered its full-year free cash flow guidance and projected a 10 per cent decline in full-year revenue.

Futures

The SPI futures are pointing to a 0.1 per cent fall.

Currency

One Australian dollar at 7.45am was buying 65.59 US cents.

Commodities

Gold added 1.04 per cent. Silver gained 1.79 per cent. Copper was flat. Oil added 0.04 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.80 per cent, Frankfurt lost 0.27 per cent, and Paris closed 0.61 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei gained 0.77 per cent , while Hong Kong’s Hang Seng added 0.49 per cent and China’s Shanghai Composite lost 1.08 per cent.

Yesterday, the Australian share market closed 0.34 per cent higher at 8249.

Ex-dividends

Acrow Limited (ASX:ACF) is paying 3 cents fully franked
Kkr Credit Inc Fund (ASX:KKC) is paying 1.67 cents unfranked
Perpetual Cred Trust (ASX:PCI) is paying 0.685 cents unfranked
Hotel Property (ASX:HPI) is paying 6.5 cents unfranked
Gryphon Capital (ASX:GCI) is paying 1.42 cents unfranked
360 Capital Mortgage (ASX:TCF) is paying 6.6667 cents unfranked

Dividends payable

Turners Automotive Group Ltd (ASX:TRA)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

Disclaimer

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