New York Stock Market Mixed Ahead of Earnings and Employment Data... Trading Halted Amid Surge in 'Trump Media'

Earnings Announcements After Market Close Including Alphabet and AMD
Labor Department's September Job Openings and Labor Turnover Survey (JOLTs) Also in Focus
Trading Halt Following Sharp Surge in DJT Stock, 'Trump SNS'

The three major indices of the U.S. New York Stock Exchange showed mixed trends in the early trading session on the 29th (local time). This week, with the earnings announcements of big tech companies, the release of key economic indicators such as employment and inflation, and the upcoming presidential election next week, investors are showing a cautious stance. With the election just a week away, the stock price of Trump Media & Technology (DJT), related to the Republican candidate and former President Donald Trump, surged sharply, causing trading of the company to be halted three times within the first 30 minutes after the market opened.

[Image source=Yonhap News]

As of 9:57 a.m. in the New York stock market on the day, the Dow Jones Industrial Average, centered on blue-chip stocks, was trading at 42,301.55, down 0.2% from the previous trading day. The S&P 500 index, focused on large-cap stocks, was down 0.1% at 5,817.66, while the Nasdaq index, centered on technology stocks, was up 0.05% at 18,576.86.

By individual stocks, Ford fell 8.7% after lowering its annual earnings forecast. McDonald's rose 0.46%. The company announced that its global same-store sales declined more than expected. The stock price of DJT, the operator of the social networking service (SNS) Truth Social, in which former President Trump owns more than half of the shares, rose 7.09%. Following a sharp 21.59% surge the previous day, the stock price also jumped in the early trading session, increasing volatility and causing trading to be halted three times at 9:36 a.m., 9:42 a.m., and 9:50 a.m. shortly after the market opened.

The New York stock market rose across the board the previous day. The market welcomed the easing of Middle East tensions amid expectations for big tech earnings. Notably, Israel conducted airstrikes on Iran over the weekend but, contrary to concerns, did not attack oil or nuclear facilities. Iran emphasized its defensive stance but refrained from immediate retaliation, easing fears of a full-scale war, and international oil prices plunged more than 6%. However, the rise in U.S. Treasury yields limited the stock market's gains.

Adam Crisafulli, founder of Vital Knowledge, said, "Currently, macro conditions are very favorable with resilient growth, declining inflation rates, economic stimulus, and relatively healthy earnings," but added, "High stock prices and Treasury yields could create headwinds for the stock market."

This week, a flood of major corporate earnings announcements is expected. Five of the "Magnificent 7" companies will release earnings. Alphabet, Google's parent company, will report earnings after the market closes today. Snap, Reddit, Chipotle, and AMD will also announce earnings. On the 30th, Meta, Facebook's parent company, and Microsoft (MS) will release earnings, and Apple’s earnings announcement is scheduled for the 31st. Amid already elevated stock price pressures, investors are expected to focus on whether big tech's growth momentum will continue and any mentions related to artificial intelligence (AI) investments.

Key economic indicators will also be released consecutively this week. Starting with the Labor Department's September Job Openings and Labor Turnover Survey (JOLTs) report today, the October ADP private employment report will be released on the 30th, followed by weekly initial jobless claims on the 31st. The preliminary estimate of the U.S. third-quarter gross domestic product (GDP) growth rate will be announced on the 30th, and the September Personal Consumption Expenditures (PCE) price index, the inflation gauge most closely watched by the Federal Reserve (Fed), will be released on the 31st.

Government bond yields are on the rise. The U.S. 10-year Treasury yield, a global bond yield benchmark, rose 4 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.32%, while the 2-year Treasury yield increased 3 basis points to 4.17%.

International oil prices are rising. West Texas Intermediate (WTI) crude oil rose $0.30 (0.45%) from the previous trading day to $67.68 per barrel, and Brent crude, the global oil price benchmark, increased $0.20 (0.28%) to $71.20 per barrel.