Key Things Investors Need to Know Before Starting the Trading Day

Market Movements

On Monday, the S&P 500 and Nasdaq Composite saw slight gains as the busiest week of earnings season began. The S&P 500 advanced 0.08% to 5,463, while the Nasdaq Composite inched up 0.07% to 17,370. In contrast, the Dow Jones Industrial Average dipped 0.12%, closing at 40,539. This week, tech giants Microsoft, Meta Platforms, Apple, and Amazon will report their quarterly results. The performance of these companies post-earnings will be crucial in determining if megacap technology stocks can bounce back from last week’s losses.

Apple Intelligence Launch

Apple has released the first version of Apple Intelligence in the developer beta of iOS 18.1. Currently, this is available only to registered Apple developers who pay $99 a year. Users must also join a waitlist in the settings app after updating. Apple Intelligence, slated for public release later this year, will not launch alongside the new iPhone models expected to run iOS 18. Interestingly, Apple revealed that the AI models for its system were pretrained on Google-designed chips, highlighting a trend of companies exploring alternatives to Nvidia.

Delta Air Lines Seeks Compensation

Delta Air Lines is taking legal action following a major outage caused by a CrowdStrike software update. The airline has hired attorney David Boies to seek damages from CrowdStrike and Microsoft. Boies is renowned for his role in the federal government’s antitrust case against Microsoft and his successful challenge to California’s gay marriage ban. Although no lawsuit has been filed yet, Delta aims to recover costs ranging from $350 million to $500 million due to flight cancellations caused by the outage.

Challenges for U.S. Auto Makers

The second half of the year is expected to be tough for General Motors, Ford, and Stellantis. U.S. auto sales are projected to slow, with a forecasted 1.3% increase compared to 2023, following a 2.9% year-over-year rise in the first half. GM plans to boost EV production to make the vehicles profitable, impacting its earnings. Ford’s lowered guidance reflects higher warranty costs. Stellantis CEO Carlos Tavares noted that U.S. operations are struggling due to mistakes in vehicle inventory levels, manufacturing, and sales strategies. Additionally, there is ongoing uncertainty around EV adoption.