Today’s Stock Market Action: Dow Surges with Robust Gains, Big Tech Demonstrates Strength

Big tech rallies ahead of Apple earnings

Investors were eager to hear Apple’s earnings, and as they waited, major tech companies such as Alphabet, Meta Platforms Inc, and Meta Platforms experienced upward momentum, boosting the overall tech sector.

Apple Inc (NASDAQ: ) is anticipated to announce its financial performance for the quarter ending in June, which is usually a slower period for the company. The report will be released on Thursday after the market closes, and it is highly awaited by Wall Street analysts who are particularly interested in gaining information about iPhone sales due to recent indications of declining customer demand.

Later on Monday, Apple is anticipated to reveal its third-generation Apple Silicon chip.

General Motors has reached a preliminary agreement with the UAW.

According to unidentified sources, Bloomberg reported that the United Auto Workers and General Motors have reached an agreement, bringing an end to a six-week-long strike at Detroit automakers.

The agreement terms resemble the recent deal that Ford and Stellantis have signed with the UAW, which includes increases in wages and allowances for the cost of living.

General Motors Company saw an increase in their stock price, while Ford Motor Company and Stellantis NV experienced a decrease in their stock prices by the end of the day.

The market anticipates an increase in Treasury bond rates in anticipation of a refinancing announcement and upcoming Federal Reserve meeting.

On Monday, the increase in Treasury yields occurred because investors were anticipating the Treasury refunding announcement, expected on Wednesday, which will provide information on the note and bond sales plans.

Some people have partly attributed the recent rise in yields to the increase in the supply of Treasuries, which has led to a selloff in the market.

Prior to the announcement, the Treasury Department reduced its projection of the amount of money it needs to borrow for the period of October through December. The new estimate is $776 trillion, which is lower than the previous forecast of $852 billion made in July.

In addition to the announcement about refinancing, the Federal Reserve’s decision on Wednesday regarding interest rates will also be closely watched as there are expectations of a rate pause.

McDonald’s and SOFI successfully meet their earnings target.

McDonald’s Corporation experienced a rise of over 2% in its stock value when the fast-food company announced that it surpassed analyst predictions in terms of revenue and profits, thanks to recent price increases that supported its growth.

SoFi Technologies Inc. (NASDAQ: ) surpassed expectations with its quarterly performance and announced an improved outlook for the full year due to higher-than-anticipated demand for student loan refinancing. Although the stock saw a decrease in gains during the day, it ultimately closed 1% higher.

ON Semiconductor is the most vulnerable chip stock among its peers.

Western Digital

shines

ON Semiconductor Corporation, listed on the NASDAQ exchange, experienced a significant decrease in stock price, dropping by 21%. This decline came despite the company surpassing expectations in its third-quarter performance. However, the positive results were overshadowed by the company’s guidance for the fourth quarter, which fell below what analysts had predicted.

The company provided its projected Q4 earnings per share (EPS) to fall within the range of $1.13 to $1.27, with revenue expected to be between $1.95 billion and $2.05 billion. These figures are lower than the estimates by Wall Street, which predicted EPS of $1.36 and revenue of $2.18 billion.

Western Digital Corporation experienced a 7% surge in its stock price after surpassing expectations in its fiscal Q2 guidance and Q1 results. The company also revealed its intention to separate its flash memory business, which will result in the company dividing into two distinct entities, with its hard-drive manufacturing business becoming an independent enterprise.

The plans for merging its flash-memory business with Kioxio and creating a spinoff did not succeed.

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