Stocks increased on Monday as traders ignored an increase in Treasury yields and anticipated a flood of corporate earnings announcements.
The Dow Jones Industrial Average increased by 391 points, or 1.2%, during trading. Each of the S&P 500 and Nasdaq Composite increased by 1.2%.
With gains of more than 2% each, Nike, Intel, and Travellers drove the Dow higher on Monday. The session saw gains in all 11 S&P 500 sectors.
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.
After the reporting period got off to a strong start, those results. Following the third quarter’s earnings per share exceeding Wall Street projections, brokerage Charles Schwab saw a gain of more than 4% on Monday. Following the publication of their most recent quarterly results on Friday, JPMorgan Chase, Wells Fargo, and UnitedHealth all increased.
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.
Source (CNBC)
