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Wall Street Swings in a Spectacle of Mixed Moves

In a show that had investors at the edge of their seats, U.S. stocks performed a precarious tightrope act on Monday. As the benchmark U.S. Treasury yields took a step back from flirting with 5%, the crowd’s attention shifted to the high-wire earnings and closely watched economic data expected later this week.

The S&P 500, in a daring display, ended the day with a modest descent, while a troupe of interest rate-sensitive momentum stocks lifted the tech-savvy Nasdaq Composite Index to a triumphant higher close.

Not to be outdone, the Dow Jones Industrial Average, often the headliner, experienced its fourth consecutive daily tumble, leaving the audience in suspense.

The Nasdaq, known for its daring acrobatics, stole the spotlight, securing the grandest gains among Wall Street’s major performers, while the blue-chip Dow played it safe with a modest bow.

The S&P 500, perhaps seeking a dramatic entrance, chose to end below its 200-day moving average, a closely watched technical level, for the second consecutive session.

But hold onto your top hats and tiaras because the coming week promises to be a thrilling extravaganza of earnings reports. Nearly one-third of the companies in the S&P 500 are set to take the stage. Among the star performers are megacap momentum drivers like Microsoft Corp, Alphabet Inc, Meta Platforms Inc, and The lineup also includes heavy-hitting industrials such as General Motors Co, Ford Motor Co, and Boeing Co.

As the curtain begins to close on earnings season, the numbers do not disappoint. According to LSEG data, of the 86 companies in the S&P 500 that have taken their bows, a staggering 78% have outshone expectations.

Analysts, the critics in this financial theater, anticipate that aggregate S&P 500 earnings for the July-September period will grow by 1.2% year-on-year. This slight departure from the 1.6% growth projected at the beginning of the month adds a tantalizing twist to the plot.

Stay tuned for more suspenseful developments, as the Commerce Department is set to reveal third-quarter gross domestic product later this week, expected to accelerate to 4.3%. And for the grand finale, their Personal Consumption Expenditures (PCE) report, scheduled for Friday, is expected to unveil annual headline and core inflation cooling down to 3.4% and 3.7%, respectively, bringing the curtain down on this riveting financial performance.

Dow futures lift, Alphabet and Microsoft earnings in focus

US stock futures were trading higher during Monday’s evening deals, with investors bracing for fresh earnings results from major tech companies.

By 7:10pm ET (11:10pm GMT) Dow Jones FuturesS&P 500 Futures and Nasdaq 100 Futures were up 0.2% apiece.

In extended deals, TrueBlue Inc (NYSE:TBI) fell 16.1% after reported Q3 EPS of $0.16, versus $0.24 expected, while revenue came in at $473 million versus $488.91 million.

Medpace Holdings (NASDAQ:MEDP) added 5.5% after reporting Q3 EPS of $2.22, versus $2.05, while revenue came in at $492.5 million versus $475.79 million expected.

Cadence Design Systems (NASDAQ:CDNS) fell 3.7% after reported Q3 EPS of $1.26 versus $1.20, while revenue came in at $1.02 billion versus $1 billion expected.

On the economic calendar, investors will be watching preliminary manufacturing PMI and services PMI data.

Ahead in Tuesday’s trade, investors will be parsing fresh earnings results from companies including Microsoft Corporation (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) Inc Class C (NASDAQ:GOOG), Visa Inc Class A (NYSE:V), Coca-Cola Co (NYSE:KO), Texas Instruments Incorporated (NASDAQ:TXN), Verizon Communications Inc (NYSE:VZ) and General Electric Company (NYSE:GE).

During Monday’s regular session, the Dow Jones Industrial Average finished 190.9 points or 0.6% lower to 32,936.4, the S&P 500 dipped 7.1 points or NASDAQ Composite added 34.5 points or 0.3% to 13,018.3.

On the bond markets, United States 10-Year rates eased 4.848%.



Logitech’s Rollercoaster Ride: Q2 Sales Dip After Pandemic Highs

In a twist of fate worthy of a Hollywood blockbuster, Logitech International, the tech world’s mouse-wielding hero, recently faced a challenging plot twist. The company that had thrived during the pandemic-induced remote work and play revolution revealed an 8% drop in sales for the second quarter, coming in at $1.06 billion, according to an official statement released on a not-so-terrific Tuesday.

Remember the pandemic days when Logitech was hailed as the savior, providing us all with keyboards, mice, and webcams to navigate the new remote world order? Well, those days seem to be fading into the annals of history. This sales slump has left some raised eyebrows.

But don’t count Logitech out just yet! Despite the Q2 blues, the company managed to pull a rabbit out of its tech hat. It reported a dazzling $2.03 billion in sales for the first half of the year, surpassing even its own rosy forecast of $1.875-$1.975 billion. And there’s more magic to this show – their non-GAAP operating income saw a 17% increase, soaring to $183 million for the second quarter. For the first half, it’s a jaw-dropping $292 million, well above the initial prediction of $180-$220 million.

As Logitech navigates this intriguing plot, it’s also on the hunt for a new CEO to fill the shoes of the long-standing executive, Bracken Darrell, who exited stage left in June. The company’s co-founder, Daniel Borel, who co-authored the Logitech tale back in 1981, has been rather vocal, urging the board to find a fresh chairperson capable of riding the ever-shifting market waves.

The search for a new CEO is a global quest, and Logitech assures us that the board is nearing the grand reveal of their chosen candidate. What’s next for this tech drama? Logitech is betting on sales in the ballpark of $4-$4.15 billion for the fiscal year, with non-GAAP operating income set to hit a cool $525-$575 million.

Investing is like a fine wine – it gets better with time, and it’s best enjoyed when you don’t guzzle it all at once. So, if you’re ready to raise a glass to your financial future, remember, it’s a long-term game of Monopoly, and you’re the shoe (or perhaps the top hat if you’re feeling particularly dapper). Slow and steady wins the race, and if you play your cards right, you might just find yourself building hotels on Park Place one day. Cheers to investing – where your money can grow while you sit back and sip on the good stuff!