Disappointing reports from Alphabet and Tesla sent the market reeling
It was quite a volatile week for the market. Though stocks rebounded on Monday and saw muted losses on Tuesday, the tech selloff that plagued last week quickly resumed after disappointing earnings results from Alphabet (GOOGL) and Tesla (TSLA). The S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) marked their worst single-session losses since September 2022 on Wednesday, while the Dow Jones Industrial Average (DJIA) dropped over 500 points as well.
Optimism surrounding a potential September interest-rate cut kept sentiment afloat, however, especially after inflation numbers came in line with estimates. At this point, the Dow is clawing back into the black for the week, as it soars over 600 points on Friday. The blue-chip index is also headed for its fourth-straight weekly win, while the S&P 500 and Nasdaq are on track for weekly losses.
Stocks Moving After Earnings
Earnings season is still in full swing, with plenty of corporate earnings to unpack aside from Alphabet and Tesla. Most notably, Coca-Cola (KO) stock jumped to two-year highs after the company's beat-and-raise, while fellow Dow member 3M (MMM) surged after its upbeat report as well. Ford Motor's (F) report rattled the market, as the stock plummeted following the auto name's profit miss.
In other news, Verizon (VZ), Ryanair (RYAAY), United Parcel Service (UPS), and Honeywell (HON) all moved lower following their earnings events, while Lockheed Martin (LMT), AT&T (T), Coursera (COUR), and Boston Beer (SAM) all marked gains.
Other Stocks to Watch
Homebuilding stocks have been on fire this month, as investors rotate away from growth stocks into cyclicals due to increased prospects of an interest rate cut. Of these, we took a look at D.R. Horton (DHI), PulteGroup (PHM), and Lennar (LEN), which have all recently hit record highs. Plus, we checked in with Tesla the day after its post-earnings drop, as well as two other popular electric vehicle (EV) stocks.
Interest Rate Decision Next Week
The Federal Open Market Committee's (FOMC) latest interest rate decision is due out next week. And though many investors are looking ahead to September, some are hopeful of a rate cut already. Regardless, comments from Federal Reserve Chairman Jerome Powell will hopefully give some insight into the Fed's timeline. There is plenty of economic data next week as well, plus several earnings reports, from names such as Microsoft (MSFT), McDonald's (MCD), and Procter & Gamble (PG). In the meantime, Schaeffer's Senior V.P. of Research points out a notable S&P 500 trendline, while Senior Quantitative Analyst Rocky White looks at interesting options activity of late.