The DOW JONES index fell 0.27% to 47,019.41 points. The most penalized value is NVIDIA, which fell 2.06%, while Apple fell 1.54%. On the advance side, Walt Disney rose 0.67% and Amgen 0.52%.
The S&P 500 fell 0.43%, at 6,705.03 points, while the Nasdaq drops 0.55% to 22,705.30 points.
Wall Street is coming off a week from more to less, in which the DOW JONES and S&P 500 managed to register slight advances, despite the falls on Thursday and Friday. The technological Nasdaqhowever, ended up falling 0.5% for the week, dragged down by values such as Alphabet, Amazon, Broadcom and Meta. However, on Friday the DOW JONES fell 0.65%, while the S&P 500 fell 0.05% and the Nasdaq rose 0.13%.
“In recent weeks we have attended a new start of sectoral rotation in the stock markets«, says Juan J. Fernández-Figares, of Link Gestión, «as a result of one of the biggest fears that investors show today: that the valuations of many companies are too demanding and that they are discounting excessive expectations of results, especially in the case of companies related to the AI phenomenon, both directly (technology companies that invest in the business), and indirectly (companies that benefit from these strong investments, such as utilities or those related to construction of data centers).
Another factor that keeps investors uneasy is the possibility that, contrary to what the markets had been assuming almost certain, the Federal Reserve will finally not lower interest rates in December. “We understand that both factors will continue to determine the behavior of the stock markets in the coming weeks, at least until the aforementioned meeting is held,” says Fernández-Figares.
For now, operators give a 44.6% probability of a 25-point rate cut at the Dec. 10 meeting, versus a 55.4% chance of staying at the current level, according to CME Group’s Fedwatch tool.
This Monday’s day will be devoid of macroeconomic references, while during the week attention will be directed to the non-farm employment report for the month of Septemberwhich could not be published in the first week of October due to the Government closure.
But the main focus of attention is on the quarterly results season, which is entering its final stretch. Until the end of last week, 456 S&P 500 companies had published their accounts, with a average increase in earnings per share of 15.9%, compared to the expected 8.5% before the publication of the first company, according to calculations by Bankinter analysts. The qualitative balance is as follows: 83% exceed expectations, 4% are in line and the remaining 13% disappoint. In the last quarter (2Q) earnings per share increased 13.3%, compared to the expected 5.8%.
This week the main protagonist will be NVIDIA, which will publish its quarterly report on Wednesday, November 19 after the markets close. As a small preview, the company’s CEO, Jensen Huang, has revealed that as of October NVIDIA had orders worth $500 billion for 2025 and 2026. For a company whose revenue has skyrocketed 600% in four years, it is a sign that it expects another year of strong growth for its next generation of chips.
We will also have to keep an eye on the retail sector, with Home Depot accounts on Tuesday, Target and Lowe’s on Wednesday and Walmart on Thursday.
Outside of the results, one of the names of the day is Alphabet, which rises 2.6% after learning that Berkshire Hathaway has revealed a stake of almost $5 billion in Google’s parent company. This operation could be one of the conglomerate’s last big decisions under the leadership of Warren Buffett, who will step down as president and CEO at the end of the year. A report filed Friday revealed that Berkshire owned 17.85 million Alphabet shares as of Sept. 30. According to Reuters calculations, at the close of the stock market, the stake would be worth $4.93 billion.
Ford Motor has announced a partnership with Amazon for its authorized dealers to sell certified used vehicles through the online sales platform. The new program will allow customers to obtain financing, initiate procedures and schedule vehicle pickup at participating Ford dealerships, the company has announced.
In analyst recommendations, bad news for HP and Dell, which they see as Morgan Stanley cuts their advice, warning of pressure on sector margins. In the case of Dell, the cut is two notches, from ‘overweight’ to ‘underweight’, while the target price goes from $144 to $110 per share, below the current price. Morgan Stanley’s recommendation on HP is changed from ‘neutral’ to ‘underweight’, with the price target reduced from $26 to $24 per share.
HP falls 3.8% in the New York morning, while Dell falls 6.5%.
Masimo shares rise 3% pre-market following a US jury’s ruling that forces Apple to pay Masimo $634 million in a smartwatch patent case.
In commodity markets, oil prices are flat as loading resumes at the major Russian export hub of Novorossiysk following a two-day suspension at the Black Sea port, which had been the target of a Ukrainian attack. West Texas futures lost a slight 0.02% to $59.95 per barrel, while international benchmark Brent oil advanced 0.05% to $64.36.
The euro fell 0.25% against the dollar, leaving the exchange rate at 1.1596 dollars for each single currency.