Stocks increased on Monday as investors prepared for a flood of corporate earnings releases and watched Treasury yields.
With 11% of the S&P 500 expected to report results this week, the earnings season is heating up. This week’s significant companies include Tesla, Netflix, Bank of America, and Johnson & Johnson.
These outcomes reflect a strong beginning to the reporting season. Following the release of their most recent quarterly results, JPMorgan Chase, Wells Fargo, and UnitedHealth climbed on Friday.
Wall Street investors are preparing for increased volatility through the rest of the year as rates and oil prices rise, inflation stays sticky, and Middle Eastern violence flares up. But according to Barclays analyst Ajay Rajadhyaksha, a focus on earnings and what the Federal Reserve will do with interest rates can provide investors hope in the short run.
In a note to clients on Monday, Rajadhyaksha predicted that bonds and stocks will range-trade in the near future. Risky assets are negatively impacted by bond volatility and Middle East tensions, but this should be countered by strong earnings and dovish Fed rhetoric.
Source (CNBC)
