- President Joe Biden dropped out of the 2024 presidential election and endorsed Kamala Harris.
- This week, Big Tech’s earnings figures will be announced.
- Delta Air Lines faced continued flight disruptions Monday following Friday’s global IT outage.
Here are five key things investors need to know to start the trading day:
The S&P 500 fell 1.97% last week, while the Nasdaq Composite lost 3.65%, marking its biggest weekly loss since April. The tech-heavy Nasdaq snapped a six-week winning streak with the losses. But it wasn’t all bad news for markets. The Dow Jones Industrial Average rose 0.72%, while the small-cap-focused Russell 2000 rose 1.68% as investors abandoned this year’s mega-cap winners in favor of smaller names. This week, traders will be keeping an eye on earnings, central bank policy and the political landscape. Infrastructure Capital Advisors CEO Jay Hatfield said he expects a “muted equity market reaction” to President Joe Biden dropping out of the presidential race, as was largely expected. Follow live market updates.
President Joe Biden announced Sunday that he is dropping out of the 2024 presidential race and abandoning his re-election bid against former President Donald Trump after weeks of pressure from his own party to withdraw. He endorsed his Vice President, Kamala Harris, as the Democratic Party nominee. “While it is my intention to seek re-election, I believe it is in the best interest of my party and the country to step down and focus solely on fulfilling the duties of President for the remainder of my term,” Biden wrote in a social media post, adding that he would address the nation later this week. Harris, 59, saw a surge in fundraising money from major Democratic donors following the announcement, according to people familiar with the matter. Harris must take several next steps before the general election: She must select a running mate, secure a majority of delegates and win the support of Biden’s allies and undecided voters. Follow live updates.
This photo illustration shows a Google logo on a smartphone.
Mateusz Slodkowski | Sopa Images | Light Rocket | Getty Images
It’s time for Big Tech earnings reports. Google parent Alphabet and Tesla are scheduled to report this week, along with more than 100 other S&P 500 companies. Meanwhile, airlines will continue to hit the runway, with Southwest Air and American Airlines scheduled to report earnings on Thursday. General Motors and Ford are also in the mix. Here are the big earnings reports to watch this week:
- Monday: Verizon (for the bell)
- Tuesday: General Motors, Coca-Cola, Comcast, UPS, Spotify (before the bell); Alphabet, Tesla, Mattel (after the bell)
- Wednesday: AT&T (before the bell); Ford, IBM, Chipotle Mexican Grill (after the bell)
- Thursday: Hasbro, Southwest Air, American Airlines (before the bell)
- Friday: Bristol-Myers Squibb (before the bell)
Airline passengers ask Delta employees to check in for their flights after the airline grounded flights due to a global technical outage caused by an update to CrowdStrike’s ‘Falcon Sensor’ software, which crashed Microsoft Windows systems, at Tampa International Airport in Tampa, Florida, U.S., July 19, 2024.
Octavio Jones | Reuters
Delta Air Lines suffered from ongoing flight disruptions on Monday as the airline struggled to recover from Friday’s global IT outage. According to aviation data firm OAG, the airline canceled more than 4,600 flights from Friday through Sunday, more than any other airline, and had canceled 550 flights, or 15% of its mainline operations, through early Monday. Delta CEO Ed Bastian apologized and offered travelers frequent flyer miles. American Airlines, which was also hit after cybersecurity giant CrowdStrike suffered a major outage tied to a botched technical update, said it was nearly back to normal by Saturday. Delta also offered flight attendants extra pay to incentivize them to work extra shifts.
Workers install solar panels during a SunPower installation on a home in Napa, California, on July 17, 2023.
David Paul Morris | Bloomberg | Getty Images
Shares of SunPower fell 70% last week, and analysts have largely written off the company as it teeters on the brink of bankruptcy. The residential solar installer told dealers it will no longer support new leases, installations or product deliveries. The shares have lost nearly all of their value in the past 12 months, falling 93% to close at 79 cents on Friday. The sector has been under pressure as high interest rates have crushed demand and left companies with too much product in inventory, while political uncertainty could change tax breaks.
— CNBC’s Alex Harring, Hakyung Kim, Kevin Breuninger, Dan Mangan, Brian Schwartz, Rebecca Picciotto, Fred Imbert, Leslie Josephs and Spencer Kimball contributed to this report.
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