Nasdaq reaches for record close after rough week for stocks

For a moment the AI darling Nvidia (NVDA) was at the top of the world, overtaking Appl (AAPL)e as the most valuable company, driven by intense demand for its next-generation chips.

During late-morning trading on Friday, Nvidia’s market cap reached $3.53 billion, surpassing Apple’s $3.52 trillion. The position shift highlighted Nvidia’s trailblazing run, as its AI chips are at the center of a transformational moment in technology.

Nvidia CEO Jensen Huang has said there is “insane” demand for its AI chips, which are used in data centers by Big Tech companies to power generative artificial intelligence software.

Nvidia previously passed Apple’s market cap in June, but was in turn beaten out by Apple and Microsoft (MSFT), with the tech companies staying in close competition.

During Friday afternoon trading Apple reclaimed the number one position with a market cap of $3.54 trillion versus Nvidia’s $3.52.

The AI chip market is expected to grow 99% in 2024 and another 74% in 2025, according to consulting firm International Business Strategies, which tracks industry data.

Some 67 analysts have Outperform ratings on Nvidia stock, while seven maintain a Hold rating, and only one recommends selling shares.

The tech-heavy Nasdaq Composite (^IXIC) is on track to set a new closing record Friday even as uncertainty over the Fed’s next move hands over a robust earnings season.

The S&P 500 (^GSPC) gained 0.5% after the benchmark snapped a three-day losing streak. The Dow Jones Industrial Average (^DJI) slipped into the red, shedding 0.2%, while the Nasdaq put on 1.3%.

Both the S&P and the Dow are on course to record losing weeks.

The benchmark 10-year yield (^TNX) rose to around 4.21%,Friday afternoon, easing back from a three-month high above 4.25% hit midweek.

The world’s richest man added donations totaling $43.6 million to his super-PAC in early October, according to new campaign finance documents, while disclosing another $10 million to help GOP Senate candidates, reports Yahoo Finance’s Ben Werschkul.

His total known spending this year now nears $130 million.

The final campaign finance filings available before Election Day also solidified another trend that has defined the 2024 money race: a Kamala Harris campaign that continues to far outpace Donald Trump’s organization among smaller donors.

Her campaign reported a windfall of $97 million in the first half of October, compared to Trump’s campaign’s $16 million.

It sets up a key contrast for the last 11 days of the 2024 campaign, with the formal operation behind Harris showing a clear advantage but with Trump looking to make up much of the difference with his array of billionaire allies.

Musk is now, according to the latest public data, the second-most-generous GOP donor this cycle and will remain central to Trump’s election efforts in the run-up to Nov. 5.

Read more about Musk’s campaign efforts and spending here.

US consumers are feeling better about the economy following the Federal Reserve’s major interest rate cut and heading into the final days of the presidential election.

Consumer sentiment lifted for the third straight month, registering its highest reading since April, according to the University of Michigan’s Survey of Consumers.

“This month’s increase was primarily due to modest improvements in buying conditions for durables, in part due to easing interest rates,” said Joanne Hsu, director of consumer surveys.

The Consumer Sentiment Index rose to 70.5 in the October 2024 survey released Friday, up from 70.1 in September and above last October’s 63.8.

Consumers’ views of labor markets became more favorable in October, Hsu said. And the share of consumers who, when not prompted, mentioned the the negative effect of high interest rates or tight credit on buying conditions for large purchases fell in October, according to the report.

Concerns over high interest rates for durable goods fell to their lowest levels in two years, the report said, suggesting a fresh willingness to purchase those goods in the near term.

Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday:

Deckers Outdoor (DECK): The footwear company surged more than 12% Friday morning after reporting earnings that beat expectations and raising its annual sales forecast. Among the standout results was a greater than 35% rise in Hoka sales and a 13% gain in sales of the UGG brand.

Capri (CPRI): Shares of the fashion company cratered after a judge blocked the parent of Michael Kors from being acquired by Coach owner Tapestry (TPR). Tapestry, meanwhile, jumped more than 15% following the decision, which said that the merging parties are close competitors and whose merger would lead to less competition in the “accessible luxury” handbag market.

Booz Allen Hamilton (BAH): The government and military contractor gained 13% after reporting second quarter earnings that beat analyst expectations and rose 18% compared to the same period last year. While other consulting firms have struggled as the advancements of AI technology may challenge the business model, Booz Allen raised its fiscal 2025 outlook and projected revenue growth as high as 13%.

Capital One Financial (COF): Shares of the bank increased 9% Friday morning after reporting earnings that beat expectations on strong results from the credit card and auto-lending businesses. Capital One is also seeking to acquire Discover in a $35 billion deal but the transaction is facing regulatory scrutiny.

What seems clearer after Tesla’s latest earnings report is that, for now, it is primarily a car company, writes Yahoo Finance’s Julie Hyman. And the more successful a car company is, the more runway investors will give it to transform.

The numbers help tell the story: Tesla’s automotive revenue was $20.02 billion last quarter, a full 79% of the total. Auto services accounted for 11%, and energy generation and storage about 9%.

It was profitability that really encouraged investors last quarter, coming in at 17.1% for the auto segment, ex-regulatory credits. That helped send Tesla’s stock soaring 22% for its biggest single-day gain since May 2013, together with Musk’s predictions that deliveries will rise this year and growth will be “something like 20% to 30%” next year.

It also sent Tesla shares back into the green for the year, after what’s been a bumpy road. In the two weeks since the company’s robotaxi event, the stock had slumped by 11%.

Read more about Tesla’s profitability improvement and the focus on cutting the cost to make vehicles.

US stocks rose on Friday morning as Treasury yields tipped lower and as uncertainty over the Fed’s next move shadowed an earnings season in full swing.

The S&P 500 (^GSPC) rose roughly 0.5% after the benchmark snapped a three-day losing streak. The Dow Jones Industrial Average (^DJI) added 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) gained around 0.6%.

Stocks are reviving somewhat as a pullback in US bond yields lifted some recent pressure on risk appetite. The benchmark 10-year yield (^TNX) slipped to around 4.18%, easing back from a three-month high above 4.25% hit midweek.

The S&P and the Dow are on track to record losses for the week.

Economic data: Durable goods orders (September preliminary); University of Michigan Consumer Sentiment, (October); Kansas City Fed Services Activity (October).

Earnings: New York Community Bancorp (NYCB), Colgate-Palmolive (CL), Booz Allen Hamilton (BAH), Aon (AON), WisdomTree (WT), Piper Sandler (PIPR), Centene Corporation (CNC), Newell Brands (NWL).

Here are some of the biggest stories you may have missed overnight and early this morning:

Tesla is still a car company — and for now, that’s OK

Capri stock craters after $8.5 billion Tapestry deal blocked

Mercedes-Benz to step up cost cuts as China slowdown drags down earnings

Apple’s iPhone sales in China slip in Q3, Huawei share soars

Chinese robotaxi startup WeRide gets $4.21B valuation in US IPO

BofA’s Hartnett says bets on gold are rising before US election

Amazon Prime introduces new benefit to save on gas