Stocks To Watch | ? Ready, set, trade! Keep an eye on these stocks as they set the market abuzz #StockMarket pic.twitter.com/bQvLsugZ6x
— ET NOW (@ETNOWlive) October 17, 2024
The stock market surged on Wednesday, with the Dow Jones Industrial Average climbing over 300 points to hit a new record high. The Dow closed at 43,077.70, gaining 337.28 points or 0.79%. The S&P 500 added 0.47% to close at 5,842.47, while the Nasdaq Composite rose 0.28%, ending at 18,367.08.
Corporate earnings played a significant role in the rally. Tesla rose 6.5% after reporting strong third-quarter earnings and revenue, and projecting robust numbers for the fourth quarter.
#USMarketsAtOpen | The S&P 500, Nasdaq 100 open flat and other significant updates ?#UnitedHealth #Schwab @Nasdaq pic.twitter.com/scoPdBkdqm
— ET NOW (@ETNOWlive) October 15, 2024
The third-quarter reporting period has started strong, with 50 S&P 500 companies reporting earnings, and 79% exceeding expectations, according to FactSet.
Experts maintain a positive outlook despite the market’s recent volatility.
Morning Report: Dow climbs 300 points to another record close as stock rotation lifts small capshttps://t.co/H7G759RsS4
— CommSec (@CommSec) October 16, 2024
CFRA Research chief investment strategist Sam Stovall noted that equities could continue to rise in the short term, particularly considering the market’s performance in September. However, he also warned of potential pullbacks due to high valuations, though more likely after the election, possibly in the new year.
Hello 5,800! The S&P 500 crossed another century mark thanks to strong #earnings and mild #inflation.
Get key points for your week in the #StockMarket here. $UBER $SMCI $TSLA $CCL $NCLH $BAC $NFLXhttps://t.co/hatfNs1X5s
— TradeStation (@TradeStation) October 14, 2024
united sees significant earnings boost
UBS echoed this sentiment, advising clients to stay invested despite stocks trading near all-time highs. The firm believes the macroeconomic and earnings environments remain favorable, recommending investors focus on quality companies with strong balance sheets and consistent earnings, particularly in the tech sector.
United Airlines saw a significant boost, with its shares soaring 11% after posting optimistic fourth-quarter guidance and announcing a $1.5 billion share buyback. In contrast, BioNTech shares plunged over 17% following news that the FDA would delay the approval of its Covid and influenza combination shot. Morgan Stanley experienced a positive trading session, with its stock popping 7% after beating quarterly earnings expectations, driven by strong performance in its wealth management, trading, and investment banking divisions.
Small-cap stocks outperformed midweek, with the Russell 2000 Index rising 1.6%, marking a fourth consecutive day of gains. This outperformance comes despite the broad market’s more modest rise of 0.3% for the S&P 500. Investment firm Piper Sandler remains optimistic about the broader market trends, suggesting Tuesday’s sell-off was a temporary setback within a longer-term upward trend, expected to continue through October.
The mid-October surge reflects strong corporate earnings and positive market sentiment, despite some underlying caution due to high valuations and potential for future pullbacks.
