Nasdaq hits record close amid tech surge

The tech-heavy Nasdaq Composite index advanced 0.78% to a record close of 18,712.75 on Tuesday, ahead of key corporate earnings releases. The broader S&P 500 added 0.16% to end at 5,832.92, while the Dow Jones Industrial Average underperformed, falling 154.52 points, or 0.36%, to close at 42,233.05. Investor anticipation is building as notable tech juggernauts, including Meta and Alphabet, are set to report their quarterly results on Wednesday and Thursday, respectively. Shares of Meta jumped 2.6%, and Alphabet advanced 1.8% on Tuesday. “It’s currently an expensive market, and so I think that investors need for earnings growth to accelerate in order to justify these higher PE ratios,” said CFRA Research Chief Investment Strategist Sam Stovall. This week is marked as the busiest of the earnings season, with more than 150 S&P 500 companies slated to report by Friday’s close. In addition, traders are keeping a close watch on Treasury yields, as the benchmark 10-year Treasury yield rose to its highest level since July. BTIG’s Chief Market Technician Jonathan Krinsky believes there is potential for near-term volatility given the upcoming U.S. presidential election, stating, “While we aren’t looking for a bear market, our conviction remains high that we are poised for some downside volatility over the coming weeks.” The major averages are coming off recent highs, with the Dow breaking a five-day losing streak and the Nasdaq notching its eighth positive session out of the last nine. U.S. crude oil edged lower on Tuesday, continuing the trend from its worst day in two years on Monday. The U.S. benchmark contract fell 17 cents, or 0.25%, to $67.21 per barrel, while the global benchmark Brent slipped 30 cents, or 0.42%, to $71.12 per barrel. Energy traders expressed relief this week after Israel’s retaliatory strikes on Iran spared the Islamic Republic’s oil and nuclear facilities. On Monday, U.S. crude oil sold off more than 6%, shedding $4.40 to settle at $67.38 per barrel. Shares of VF Corp.

Nasdaq hits new high amid earnings

surged more than 23% in afternoon trading, heading for their best day on record after the retailer exceeded Wall Street’s expectations for the second fiscal quarter. The North Face parent posted adjusted earnings of 60 cents per share on revenue of $2.76 billion, surpassing consensus forecasts from analysts. Executives highlighted improvements within the Vans brand, noting that while sales were down 11% year-over-year, they had improved from a 21% decline in the prior quarter. Shares are now up more than 10% in 2024, which would mark the stock’s first positive year since 2019. Despite the Nasdaq and S&P 500 trading near record highs, market breadth remained negative. Nearly 68% of all stocks traded on the New York Stock Exchange were down in price, with about 1,904 out of 2,820 stocks declining. On the Nasdaq, over 51% of stocks were down. Shares of Crocs fell more than 18% in afternoon trading despite the company posting better-than-expected quarterly results. The stock is on pace for its worst day since March 2020. For the third quarter, Crocs reported earnings of $3.60 per share on $1.06 billion in revenue, surpassing consensus estimates. However, the company’s fourth-quarter outlook fell short, leading to the stock’s decline. On Tuesday’s broader market movements, the S&P 500 and Nasdaq ended in the green, while the Dow fell slightly. Investors and traders continue to navigate a mix of earnings reports, economic data, and geopolitical developments impacting the market.