By Heard Editors

Five of the market's Magnificent Seven tech companies will report earnings this week. How magnificently the market responds will likely set the course for stocks heading into the U.S. presidential election.

Ahead of those reports, markets were little changed. The S&P 500 rose 0.3%, and the Dow Jones Industrial Average added 273 points, or 0.6%. The Nasdaq Composite gained 0.3% as well.

The big moves were elsewhere in the markets, though it was due to news that is usually supportive for stocks. Oil prices recorded their biggest one-day drop since 2022 as it emerged that recent strikes by Israel did not damage Iran's energy facilities.

Yet stocks' muted performance might be reflective of a thus-far tepid earnings season. More than a third of the way through reports by companies in the S&P 500, about three-quarters have beaten earnings. That sounds like a lot, but it is actually a bit below the five-year average of 77% beats, according to FactSet.

All of that could change this week, with a bunch of big names on the horizon, including closely watched "Mag 7" tech heavyweights Alphabet, Amazon, Apple, Meta and Microsoft. Apple's upcoming report may give some crucial reads on what is next for the company's AI strategy, Heard's Dan Gallagher says.

This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.

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(END) Dow Jones Newswires

October 28, 2024 18:45 ET (22:45 GMT)

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