Stock Market Falls Below 40K as Precious Metals Rise

Investors are eagerly awaiting Palo Alto Networks’ earnings report set to be released after the bell on Monday. The cybersecurity company is expected to provide updates on its “platformization” strategy as it aims to become a comprehensive cybersecurity solution provider. Analysts project a revenue of $1.97 billion for the third quarter of 2024, with net income expected to be $143.3 million. Diluted earnings per share (EPS) are anticipated to be 40 cents, compared to 31 cents in the same period last year.

Meanwhile, the spot price of gold reached a record high above $2,450 per ounce before sliding to $2,435.28 in the afternoon. This surge in price comes amid expectations of Federal Reserve rate cuts and concerns about geopolitical risks in the Middle East and Eastern Europe. Purchases by China’s central bank and the death of Iranian President Ebrahim Raisi have also contributed to the rise in gold prices.

In other news, Hims & Hers Health saw a surge in its stock price after announcing the release of a weight-loss product similar to Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound at a significantly lower price. The popularity of GLP-1 injections has boosted the sales of these pharmaceutical companies, propelling them into the ranks of the world’s most valuable companies.

On the flip side, Li Auto experienced a slump in its stock price after reporting a 36% year-over-year drop in first-quarter net income due to lower car prices. Despite the drop in profit, revenue was up by 36%, driven by an increase in vehicle deliveries.

Lastly, Norwegian Cruise Line Holdings led the S&P 500 after raising its full-year guidance amid strong demand. The company increased its adjusted earnings per share forecast and net yield forecast, reflecting positive growth in the cruise industry.

Overall, the stock futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 were showing slight gains, indicating a positive start to the trading day. Investors will be closely monitoring these developments as they navigate the volatile market conditions.