Tuesday, May 21, 2024
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As Profit Expectations Overcome Rising Rates, Stocks Close Higher and the Dow Jumps 300 Points

Stocks ended the day higher on Monday as investors braced themselves for a barrage of corporate earnings releases and ignored an increase in Treasury yields.

The Dow Jones Industrial Average had its best day since September, moving up 314.25 points, or 0.93%, to settle at 33,984.54. The Nasdaq Composite increased 1.2% to 13,567.98, while the S&P 500 rose 1.06% to close the day at 4,373.63.

On Monday, the Dow was driven higher by gains of about 2.1% by Nike and Travellers Companies. The session saw gains in all 11 S&P 500 sectors.

This week, 11% of the S&P 500 are expected to report earnings, kicking off the earnings season. Johnson & Johnson, Tesla, Netflix, and Bank of America are just a few of the well-known companies participating.
Following the reporting period’s strong beginning, those outcomes will come. Following the release of its third quarter earnings per share results, brokerage Charles Schwab saw a 4.7% increase on Monday. Following the publication of their most recent quarterly results on Friday, JPMorgan Chase, Wells Fargo, and UnitedHealth all increased.

Amid rising rates, oil prices, persistent inflation, and Middle Eastern war, some on Wall Street are preparing for further volatility through the end of the year. However, according to Lisa Erickson, senior vice president at U.S. Bank Wealth Management, a short-term focus on earnings can encourage investors.

Source (CNBC)

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