Nasdaq leads at the open as dip-buyers return to AI stocks
The Nasdaq rose about 1% in mid-morning trading while the Dow was little changed; home-builder sentiment fell.
U.S. stocks opened the week mostly higher: the Nasdaq Composite rose about 1% and the S&P 500 about 0.4% in mid-morning trading, while the Dow Jones Industrial Average was little changed, per CNBC and Barron's. The rebound follows the Nasdaq's worst week since June, a drop of more than 4%, per Barron's.
Investors bought the dip in AI names after last week's selloff over what the AI build-out costs and when it pays back, per CNBC. The test comes fast: 70 S&P 500 companies report this week, with Netflix and General Motors on Tuesday and Tesla, Meta and IBM on Wednesday - see our week-ahead calendar and this morning's earnings-week story.
Home-builder sentiment slipped: the NAHB/Wells Fargo Housing Market Index fell three points to 29 in October, below the 31 economists expected and down from 32 in September, per the NAHB and MarketWatch's calendar. Current sales conditions fell two points to 33 and six-month sales expectations dropped five points to 32, and 43% of builders cut prices - the highest share in the survey's 2020-2026 span - with the average cut holding at 6%, per the NAHB. September housing starts data follow Tuesday morning.
Oil eased again after its slide from five-month highs: WTI traded near $100.75 a barrel, down about 0.6% in mid-morning trading, per Barron’s, as the Russia sanctions waiver lifted supply hopes - see this morning's oil story and Sunday's waiver story. The 10-year Treasury yield held near 5.11%, per CNBC.
