Last Updated: 4:01 PM EST
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Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.35%, 0.28%, and 0.61%, respectively. On Monday, the U.S. Census Bureau released its Factory Orders report, which measures the change in the total value of new purchase orders placed with manufacturers. During September, factory orders decreased by 0.5% on a month-over-month basis. This missed expectations of a 0.4% drop and comes after a 0.8% decline in the previous month.
However, when excluding transportation, factory orders increased by 0.1%, which was an improvement from the previous report of a 0.2% decrease.
In a separate development, the Schwab Trading Activity Index (STAX), which shows how retail investors at Charles Schwab (SCHW) are trading, increased slightly in October. Clients became net buyers and pushed the index to 48.37 from 47.10 in September. Nevertheless, this is still considered at a “moderate low” level compared to past averages.
Joe Mazzola, Schwab’s head trading strategist, said earnings reports were better than expected, with 79% of companies beating EPS estimates. Even though Treasury yields rose, the major U.S. stock indices hit record highs due to generally positive economic data that markets reacted well to.
Interestingly, Schwab clients bought more equities but kept moving away from individual stocks. Instead, they put more money into ETFs, mutual funds, and bonds. Mazzola pointed out that people are still looking to diversify and lower their risk.
First Published: 4:04 AM EST
U.S. stock futures traded mixed on Monday as investors remain uncertain about the potential outcomes of the upcoming U.S. presidential election and the Federal Reserve’s interest rate decision. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were up 0.14% and 0.13%, respectively, at 3:21 a.m. EST, November 4, while the Dow Jones Industrial Average (DJIA) futures were down 0.12%.
Last week, all three major indices closed in the negative territory. The S&P 500 and the Dow Jones closed their second straight week in the red, while the Nasdaq ended its seven-week winning streak. The fall can be attributed to a sell-off in technology stocks as investors assessed earnings reports from major tech companies.
Moving on, the upcoming U.S. presidential election is significantly influencing the market sentiment. With polls showing a tight race, investors are closely monitoring the potential impact of the election outcome on the broader economy.
In addition to the election, investors are also focused on the Fed’s monetary policy decision, which is due on Thursday. The market is widely expecting a rate cut, but the Fed’s commentary on future monetary policy will also be in focus.
Furthermore, the upcoming week will also see a slew of corporate earnings reports, with companies like Super Micro Computer (SMCI), Moderna (MRNA), Rivian (RIVN), Airbnb (ABNB), Lucid (LCID), Palantir (PLTR), CVS Health (CVS), Qualcomm (QCOM), and Arm Holdings (ARM), among others, scheduled to release their financial results.
Meanwhile, the U.S. 10-year treasury yield is down at the time of writing, floating near 4.313%. At the same time, WTI crude oil futures trended higher, hovering near $70.81 per barrel as of the last check.
Elsewhere, European markets opened mixed today ahead of the U.S. presidential election scheduled for Tuesday.
Asia-Pacific Markets Traded Higher on Monday
Asia-Pacific indices traded higher today as investors braced themselves for the U.S. election and the Fed’s monetary policy decision. Traders are also looking forward to further fiscal stimulus measures, which are expected to be announced by Chinese authorities on Friday.
Hong Kong’s Hang Seng index was up 0.3%. Further, China’s Shanghai Composite and Shenzhen Component indices gained 1.17% and 1.99%, respectively.
Investors should note that the Japanese stock market remained closed today for the Culture Day holiday.
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