New York Stock Market Pauses Amid Corporate Earnings... Focus on September Retail Sales

Goldman Sachs and BoA Earnings Beat Expectations
September Retail Sales in Focus... Expected 0.3% MoM Increase
Oil Prices Drop 4% on Eased Concerns Over Iran Oil Facility Attacks

The three major indices of the U.S. New York stock market showed mixed trends on the 15th (local time). Following the Dow Jones Industrial Average and the S&P 500 index breaking record highs again the previous day, the market appears to be taking a breather. The market is closely watching this week's corporate earnings reports and the September retail sales data.

As of 9:38 a.m. in the New York stock market on the day, the blue-chip-focused Dow Jones Industrial Average was trading at 42,798.25, down 0.62% from the previous trading day. The large-cap-focused S&P 500 index was up 0.07% at 5,863.75, and the tech-heavy Nasdaq index was up 0.2% at 18,540.55.

By individual stocks, UnitedHealth Group fell 9.84% after lowering its annual earnings forecast. Bank of America (BoA) rose 1.72% on earnings that exceeded market expectations. Goldman Sachs also rose 0.58% following earnings that beat Wall Street forecasts.

The previous day, the New York stock market rose across the board, powered by a rally in technology stocks including Nvidia. The Dow Jones Industrial Average surpassed 43,000 for the first time, setting a new all-time high. The S&P 500 index also reached a record high. Nvidia, the AI (artificial intelligence) leader, saw its stock price rise 2.43% to $138.07 per share, hitting an all-time high, highlighting the tech stock rally.

Scott Kronut, U.S. equity strategist at Citigroup, said, "We have to acknowledge that the S&P 500 index is at least somewhat overvalued," but added, "If the news flow supports it, the upward trend can continue."

This week, the market is focusing on corporate earnings reports and economic indicators that began in earnest late last week.

The key will be the September retail sales data to be released by the U.S. Department of Commerce on the 17th. Experts expect retail sales last month to have increased by 0.3% from the previous month, a larger increase than August's 0.1%. Some on Wall Street, including BoA, speculate that retail sales may have risen by 0.8% last month. If retail sales prove stronger than expected following a significant increase in September nonfarm payrolls, the no-landing scenario?where the U.S. economy continues to grow without a recession?may gain traction.

Major companies scheduled to report earnings this week include ASML on the 16th, and Taiwan's TSMC and Netflix on the 17th. Corporate earnings reports will also serve as a gauge of the U.S. economy and are expected to influence the stock market direction.

Remarks from Federal Reserve (Fed) officials will continue. On this day, key Fed officials such as Mary Daly, President of the San Francisco Fed, Fed Board member Adriana Kugler, and Raphael Bostic, President of the Atlanta Fed, are scheduled to make public statements.

With the bond market reopening after being closed for Columbus Day the previous day, Treasury yields are showing weakness. The U.S. 10-year Treasury yield, a global benchmark for bond yields, fell 7 basis points (1 bp = 0.01 percentage points) from the previous trading day to 4.05%. The 2-year Treasury yield remained steady at 3.93%.

International oil prices are weakening after reports that Israel conveyed to the U.S. its intention to target military facilities rather than Iranian nuclear or oil facilities, easing supply concerns. West Texas Intermediate (WTI) crude oil fell $3.33 (4.5%) to $70.50 per barrel, and Brent crude, the global oil price benchmark, dropped $3.28 (4.2%) to $74.18 per barrel.