Nasdaq Outpaces the Dow and S&P 500
Stocks moved little on Monday even though both the Nasdaq Composite and S&P 500 hit new highs in steady performances.
Quick overview
- The stock market showed little movement on Monday, with the Nasdaq Composite rising 0.38% while the Dow and S&P 500 remained mostly unchanged.
- Investors are awaiting economic developments, including potential actions from the Federal Reserve regarding interest rate cuts.
- Major companies General Motors and Coca-Cola reported mixed quarterly earnings, leading to a decline in GM's stock despite Coca-Cola exceeding some expectations.
- Overall, the market is holding near record highs, but individual stocks are experiencing minimal changes.
The stock market did not move much on Monday as investors waited for developments in the economy, but the Nasdaq Composite did climb 0.38%.
The Dow Jones and S&P 500 indices were changed little by the end of trading Monday, with the Dow down 0.04% and the S&P 500 adding 0.14%. Even the threat of new tariffs from President Trump did not cause investors to panic and sell their stocks, and the market is retaining its strength and staying near record highs on many fronts.
New Highs, But Little Movement
Because the S&P 500 and Nasdaq Composite were already nearing all-time highs after a week of setting new records, they continued to the new highs on Monday. However, there was very little overall change for the markets.
Individual stocks moved little despite the new highs being achieved. Both of the top indices hitting all-time records did not do much to shift the stocks, and we saw a lot of treading water on Monday. That may continue through Tuesday unless a new factor is introduced. The market is retaining its resiliency, but investors are holding their breath waiting for something to happen.
We may see some action from the Federal Reserve soon, with a new interest rate cut likely to come in the next month or so. Trump has put pressure on the Federal Reserve to issue rate cuts, but Chairman Jerome Powell has been hesitant to do so. The two have clashed over this issue to the point where Trump is actively working to replace Powell.
General Motors and Coca-Cola Report Earnings
Two major companies reported their quarterly earnings this week and managed to exceed expectations in some regards and fall short in others. These are General Motors and Coca-Cola, with Q2 earnings that beat anticipated only some of the expected numbers. However, that was not enough to keep these companies’ stocks from dipping.
In late day trading. General Motors (GM) stock dropped about 3%, and Coca-Cola (KO) fell only slightly as a result of its Q2 report. Coca-Cola exceeded market predictions about adjusted revenue and earnings per share with $12.54 billion in earnings over three months. General Motors fell short of last year’s Q2 earnings with a 2% drop down to $47 billion.
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