The stock market continued its winning streak last week, with the Dow Jones Industrial Average leading the charge with a 1% gain. Both the S&P 500 and Nasdaq Composite also saw positive gains, reaching all-time highs during the week. This performance was driven by strong earnings from companies like Netflix, setting the stage for other major players like Tesla to report quarterly results.
The market also saw a rotation out of megacap tech and into other sectors, with Utilities, Real Estate, and Financials seeing notable gains. Small caps also outpaced the major indexes, indicating a broad-based bullish sentiment among investors.
Earnings season has been off to a strong start, with 79% of S&P 500 companies delivering positive surprises for Q3. This trend is expected to continue this week, with reports from Tesla, Boeing, General Motors, American Airlines, and UPS among the highlights.
In addition to earnings, investors will be keeping an eye on economic data releases, including consumer sentiment, the Fed Beige Book, and updates from the housing market. Mortgage rates have been on the rise, adding another layer of complexity to the market dynamics.
One key player to watch this week is Tesla, which is set to report earnings on Wednesday following its “We, Robot” event. Analysts are expecting strong numbers from the EV giant, driven by global deliveries and potential improvements in automotive gross margins. However, investor sentiment remains cautious after the recent robotaxi unveiling, which fell short of expectations.
Overall, the markets are in a state of flux, with investors navigating a mix of earnings releases, economic data, and company developments. As always, staying informed and staying ahead of the curve is key to success in the ever-changing world of finance. Stay tuned to Extreme Investor Network for the latest updates and insights to help you make informed investment decisions.