NYSE floor, 2021 archive: Bear Bull Traders (CC BY 2.0; crop).
The Dow Jones Industrial Average jumped more than 400 points at the open Monday as Wall Street tried to bounce back from its worst day since June, with technology shares leading the recovery ahead of Apple’s earnings report tonight.
By 9:34 a.m. Eastern time, the Dow was up 428 points, or 0.8%, at 52,198. The S&P 500 rose 0.5% to 7,620 and the Nasdaq composite gained 0.7% to 25,607, clawing back a piece of Friday’s rout, when fears over the cash cost of the artificial intelligence buildout knocked the Nasdaq down 2.9%.
Tech leads the bounce – except Intel
Amazon, one of last week’s biggest casualties, rose 2.3% to about $246. Apple added 1.7% to about $208 as investors positioned for its results after the closing bell, the last mega-cap report of the season. Nvidia edged down 0.4%.
The exception was Intel, which fell another 2.6% to about $64, extending the losses from Friday, when the chipmaker closed down 28.6% after forecasting fourth-quarter revenue of $15 billion to $16 billion and earnings of just 10 cents a share on a weak personal-computer market. In two sessions, the stock has lost nearly a third of its value.
Oil’s slide deepens – and drags the oil majors down
The other big move of the morning was crude: Brent fell 5.7% to $106.94 a barrel as of 9:24 a.m., deepening an overnight slide as talks between Iranian negotiators and Qatari mediators on ending the U.S.-Israeli war on Iran raised hopes that supply disruptions could ease. That reversed Friday’s energy trade – Exxon Mobil, which had rallied after beating profit expectations, fell 2.6% to about $182.
The 10-year Treasury yield slipped to 4.90%, while gold rose 1.3% to $3,949 an ounce. Bitcoin held near $78,000 after last week’s record $6.3 billion Binance hack.
What changed from the pre-market picture
Futures had pointed to a gain of about half a percent across the board, and the open delivered almost exactly that. The differences were in the details: Intel’s small premarket loss deepened once regular trading began, oil’s slide steepened from about 4% to nearly 6%, and the Dow, which held up better than the Nasdaq through last week’s tech turmoil, took the early lead as money moved back into blue chips.
What it means for you
Two pieces of this morning land directly in household budgets. First, relief at the gas pump is getting closer: oil has now fallen roughly $10 a barrel since Thursday, and cheaper crude works its way into fuel prices over the following weeks – though at $107, Brent remains far above where it started the year. Second, the 10-year Treasury yield that mortgage and auto-loan rates follow slipped to 4.90%, down from around 5.3% at the start of October, which takes some pressure off borrowing costs. For retirement savers, Monday’s bounce repaired part of Friday’s damage within the first hour – but with Apple reporting tonight and the jobs report Friday, the week is far from settled.
What to watch
At 10 a.m., the manufacturing sector’s activity and prices-paid readings offer the first economic data of a packed week. After the close, Apple’s results – and especially what it says about AI spending – will set up Tuesday’s session, when Americans also vote in the midterm elections. Any breakthrough or breakdown in the Iran talks moves oil, and with it, inflation math for the Federal Reserve.
JBizNews Desk | Wall Street
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