Dow surpasses 43,000 amid earnings anticipation

The S&P 500 and Dow Jones Industrial Average reached new records on Monday as investors looked ahead to the next round of key corporate earnings.

The broad market index climbed 0.77 per cent to 5,859.85, while the 30-stock Dow advanced by 201.36 points to 43,065.22. Both averages set all-time highs and closed at record levels, with the Dow finishing above the 43,000 mark for the first time. The Nasdaq Composite rose 0.87 per cent, closing at 18,502.69.

McDonald’s, UnitedHealth Group, and Apple drove the Dow higher. Technology continued its upward trend, making it the best-performing sector in the S&P.

The technology sector was the best performer overnight, gaining 1.36 percent. The only sector that finished in the red was Energy, losing 0.1 percent.

Bank of America, Goldman Sachs, and Johnson & Johnson are set to report their latest results on Tuesday, while Morgan Stanley and United Airlines will release results on Wednesday. Walgreens Boots Alliance, Netflix, and Procter & Gamble are also scheduled to post earnings this week.

These reports will follow a positive kickoff to the third-quarter earnings season from JPMorgan Chase and Wells Fargo. The early indications of a recovery in banking profits contributed to the broader market reaching all-time highs at the end of last week. The S&P 500 closed above 5,800 for the first time on Friday, with the blue-chip Dow also hitting a record high.

Despite the market reaching new all-time highs, investors remain uneasy amid a closely contested presidential election in three weeks, rising Treasury yields, uncertainty surrounding the pace of Federal Reserve policy easing, and escalating geopolitical risks in the Middle East.

In commodity news, OPEC has reduced its global demand forecast for 2024 for the third consecutive time, putting pressure on the crude futures market. US crude oil was down 2.1 per cent, while global benchmark Brent pulled back 1.78 per cent per barrel.

Futures

The SPI futures are pointing to a 0.5 per cent gain.

Currency

One Australian dollar at 7.40am was buying 67.23 US cents.

Commodities

Gold lost 0.26 per cent. Silver fell 0.87 per cent. Copper dropped 1.92 per cent. Oil lost 2.04 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.47 per cent, Frankfurt gained 0.69 per cent, and Paris rose 0.32 per cent.

Turning to Asian markets, Tokyo’s Nikkei was closed, while Hong Kong’s Hang Seng lost 0.75 per cent and China’s Shanghai Composite gained 2.07 per cent.

Yesterday, the Australian share market closed 0.47 per cent higher at 8253.

Ex-dividends
Cadence Capital (ASX:CDMI) is paying 3 cents fully franked
CDO Opportunity Fund (ASX:CDOI) is paying 7 cents fully franked
Harvey Norman (ASX:HVNI) is paying 12 cents fully franked
Soul Pattinson (W.H) (ASX:SOLI) is paying 55 cents fully franked
WAM Microcap Limited (ASX:WMI) is paying 5.25 cents fully franked

Dividends payable

BlueScope Steel Ltd (ASX:BSL)
Downer EDI Ltd (ASX:DOW)
Garda Property Group (ASX:GDF)
Integrated Research Ltd (ASX:IRI)
Qube Holdings Ltd (ASX:QUB)
Saunders International Ltd (ASX:SND)
WT Financial Group Ltd (ASX:WTL)

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

Disclaimer

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