[New York Stock Market] Rises Ahead of Big Tech Earnings... Nasdaq Up 0.93%

The three major indices of the U.S. New York stock market all closed higher on the 24th (local time) as investors closely watched the movements of Treasury yields ahead of earnings announcements from major big tech companies such as Google Alphabet.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, which focuses on blue-chip stocks, closed at 33,141.38, up 204.97 points (0.62%) from the previous session. The S&P 500, centered on large-cap stocks, rose 30.64 points (0.73%) to 4,247.68, while the tech-heavy Nasdaq index closed at 13,139.88, up 121.55 points (0.93%).

All sectors except energy stocks in the S&P 500 rose. Coca-Cola surged 2.88% from the previous close on better-than-expected earnings. Spotify also jumped more than 10% on strong results. General Motors (GM) fell more than 2% after withdrawing its full-year guidance despite better-than-expected earnings, citing increased costs due to the United Auto Workers strike. Google Alphabet and Microsoft (MS) closed the regular session up 1.69% and 0.37%, respectively, buoyed by expectations ahead of their earnings announcements after the market closed that day.

Investors monitored Treasury yield movements and corporate earnings, which have recently increased market volatility. As third-quarter earnings announcements continue, Alphabet and MS, part of the Magnificent Seven that led the New York stock market's rally in the first half of the year, released their quarterly results after the market closed that afternoon. MS reported earnings per share of $2.99, beating the estimate of $2.65. Alphabet's earnings per share also exceeded expectations at $1.55 versus the forecast of $1.45.

Earlier that day, earnings from Coca-Cola, Spotify, and GM were all better than expected. According to FactSet, about 23% of S&P 500-listed companies have reported earnings so far, with 77% beating estimates. Meta Platforms and Amazon are scheduled to announce earnings on the 25th and 26th, respectively. David Bensen, Chief Investment Officer at Bensen Group, told CNBC, "Whatever the results from this week's big tech earnings, they do not justify their valuations," adding, "Despite the recent three-month decline in big tech stocks, they are still too expensive."

In the New York bond market, the benchmark 10-year U.S. Treasury yield fell to around 4.81%. The 10-year yield, which had previously surpassed 5% and weighed on the stock market, stabilized somewhat, helping to restore investor sentiment. The 2-year yield, sensitive to monetary policy, hovered around 5.09%. On the previous day, Wall Street heavyweights, including Bill Ackman, chairman of Pershing Square Capital, announced they had closed bond short positions amid recession warnings. However, some still expect the 10-year Treasury yield to continue rising.

Jamie Dimon, chairman of JPMorgan Chase, attending an event in Saudi Arabia that day, pointed out that the Federal Reserve's economic forecasts are not accurate and warned, "I am cautious about what will happen next year." He also added that market interest rates could rise further.

This week, the U.S. third-quarter gross domestic product (GDP) growth rate and the personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, will also be released. The September PCE price index is estimated to rise 0.4% month-over-month. The third-quarter economic growth rate is expected to reach the 4% annualized range, supported by robust consumption. This marks a significant rebound compared to the low 2% growth rates in the first and second quarters. Fed Chair Jerome Powell is scheduled to deliver the opening speech at a Washington, D.C. event on the 25th, but as it falls within the blackout period when officials are prohibited from commenting on monetary policy, no related remarks are expected.

Meanwhile, investors are also watching geopolitical risks emanating from the Middle East. Israeli Prime Minister Benjamin Netanyahu met with French President Emmanuel Macron, who was visiting Israel that day, and compared Hamas's attacks to the Holocaust perpetrated by Nazi Germany during World War II. President Macron proposed forming an international coalition to defeat Hamas.

Despite geopolitical risks, oil prices fell for the third consecutive trading day. On the New York Mercantile Exchange, December delivery West Texas Intermediate (WTI) crude oil closed at $83.74 per barrel, down $1.75 (2.05%) from the previous session.