The broad market index rose 0.6%, while the Nasdaq Composite advanced 1.3%. The Dow Jones Industrial Average lags behind and trims 0.1%. The Dow, which includes 30 stocks, was pressured by a 3% drop in Caterpillar following a downgrade by Morgan Stanley.
The New York market is rising, driven by the technology sector, which, as a whole, is climbing 1.2%. It is followed by the communication services sector, which rises by 0.8%, and the “Utilities” sector, which rises by 0.5%.
Bank of America, Goldman Sachs and Johnson & Johnson publish their latest results on Tuesdaywhile Morgan Stanley and United Airlines are scheduled to release results on Wednesday. Walgreens Boots Alliance, Netflix and Procter & Gamble are also scheduled to release earnings this week.
These reports will arrive after JPMorgan Chase and Wells Fargo to start third-quarter earnings season on the right foot. Early signs of a recovery in bank profits helped push the broader market to all-time highs late last week. The S&P 500 closed above 5,800 for the first time on Friday, while the large-cap Dow also hit an all-time high.
Wall Street: the data that the market expects
So far, 30 S&P 500 companies have posted results, beating earnings consensus by about 5% on average, according to Bank of America. This is better than the 3% improvement in the same period of the previous quarter. However, Bernstein believes this quarter’s year-over-year earnings per share growth rate will still be “much lower” than last quarter.
Even as the market has reached new heights, investors remain anxious amid a backdrop of a closely contested presidential election in three weeks, the sudden rise in Treasury yields, uncertainty over the pace of U.S. policy easing. Federal Reserve and growing geopolitical risks in the Middle East.
Even so, “the four big macroeconomic winds (stimulus, resilient growth, disinflation and healthy corporate performance) are still in place and powerful enough to overcome elevated valuations and geopolitical risks, keeping the S&P 500 on an upward trajectory,” Adam Crisafulli, founder of Vital Knowledge, said in a note on Sunday.
The S&P 500 has gained nearly 22% this year, excluding reinvested dividends. The bull market recently turned two years old, and the index has risen nearly 63% in total since hitting a closing low in October 2022. Treasury yields have also risen lately, with the yield on the 10-year bond, used to calculate everything from mortgages to auto loans, topping 4.1% last week.
On the data front, September retail sales and September industrial production figures will be released on Thursday, followed by September housing starts and building permits on Friday.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
