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Monday Market Recap: Dow Hits Record Highs, Google Eyes Major Acquisition

Alex Vellor

08:50am, Monday, Jul 15, 2024

Photo by Phil Hauser on Unsplash.com

The Dow Jones Industrial Average celebrated new record highs on Friday, climbing over 200 points to finish above 40,000 for the first time since May. This rise contributed to a strong week for the index, which saw a 1.6% increase. In contrast, the S&P 500 grew by 0.9%, and the tech-focused Nasdaq Composite increased by 0.3%. As a result, the Dow has surged 6.1% this year, while the S&P 500 has enjoyed an 18% rise in 2024. Investors remain hopeful for continued growth as companies prepare to release their second-quarter earnings reports in the coming weeks.

Premarket Movers:

Company	Ticker	Change	Details
Super Micro Computer	NASDAQ:SMCI	+3.6%	Shares rose on the announcement that the company will replace Walgreens Boots Alliance in the Nasdaq 100 index before the start of trading on July 22.
Tesla	NASDAQ:TSLA	+4%	The electric vehicle stock rose, building on a more than 25% gain so far this month.
BlackRock	NYSE:BLK	+1.2%	Shares rose after posting second-quarter adjusted per-share earnings of $10.36, exceeding the LSEG consensus estimate of $9.93. However, revenue of $4.81 billion came in below the $4.85 billion forecast.
Apple	NASDAQ:AAPL	+2%	Shares gained after Loop Capital upgraded the technology giant to a buy rating, citing opportunities in AI. Bloomberg News also reported record sales in India, growing 33% year over year to $8 billion.
Trump Media & Technology	NASDAQ:DJT	+50%	Shares of the Truth Social parent rose following the attempted assassination of former President Donald Trump on Saturday.
Goldman Sachs	NYSE:GS	-1%	Shares slipped after the bank posted a second-quarter earnings beat, with per-share earnings of $8.62 on revenue of $12.73 billion, against expected earnings of $8.34 on revenue of $12.46 billion.

Google’s Potential Acquisition of Wiz

Alphabet (NASDAQ:GOOG, GOOGL), Google’s parent company, is reportedly close to acquiring the cybersecurity firm Wiz for $23 billion.

If finalized, this deal would mark Google's largest acquisition to date. Wiz, founded in 2020, had considered an initial public offering as recently as May when it was valued at $12 billion. This potential acquisition comes amid heightened antitrust scrutiny from the Justice Department.

Housing Market Struggles with High Prices and Mortgage Rates

Aspiring homeowners are feeling the pinch as high home prices and mortgage rates create significant barriers to entry.

The 30-year mortgage rate has hovered around 7% for several months, a stark increase from the sub-3% rates seen during the early pandemic.

Concurrently, the Case-Shiller national home price index has reached all-time highs, reducing affordability. This situation also affects current homeowners who are hesitant to sell their properties due to these financial constraints.

Earnings Season Set to Heat Up

The Q2 earnings season is set to intensify this week, with major financial institutions leading the way:

Day	Date	Companies
Monday	July 15	Goldman Sachs Group, Inc. (GS) BlackRock, Inc. (BLK)
Tuesday	July 16	Bank of America Corporation (BAC) Morgan Stanley (MS) UnitedHealth Group Incorporated (UNH) Interactive Brokers Group, Inc. (IBKR) PNC Financial Services Group, Inc. (PNC)
Wednesday	July 17	Johnson & Johnson (JNJ) ASML Holding N.V. (ASML) Elevance Health, Inc. (ELV) Kinder Morgan, Inc. (KMI) United Airlines Holdings, Inc. (UAL)
Thursday	July 18	Taiwan Semiconductor Manufacturing Company Ltd. (TSM) Netflix, Inc. (NFLX) Blackstone Inc. (BX) Domino's Pizza Inc (DPZ)
Friday	July 19	American Express Company (AXP) Schlumberger N.V. (SLB) Halliburton Company (HAL)

These reports will be closely watched by investors looking for signs of continued economic recovery and corporate performance.

Crude Oil Prices Dip on Weak Chinese Economic Data

Crude oil prices experienced a slight decline on Monday, influenced by weak economic data from China.

By 06:40 ET, U.S. crude futures (WTI) had dropped 0.1% to $80.94 per barrel, while Brent crude fell 0.1% to $84.98 per barrel.

China, the world’s second-largest economy, posted its weakest growth since the first quarter of 2023, with crude oil imports falling 2.3% in the first half of the year.

This slowdown suggests growing economic challenges and may negatively impact crude demand. Despite these factors, losses have been contained due to political uncertainties in the U.S. and the Middle East, which continue to support prices.

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