Traders work on the trading floor of the New York Stock Exchange.
Brendan McDermid | Reuters
this S&P 500 Index It rose to new highs on Monday as investors awaited assessment of whether the next batch of key corporate earnings reports can continue to push the market to new highs.
The broader market index rose 0.7%, while Nasdaq Index Advanced 1%. this Dow Jones Industrial Average lagged and rose 0.1%. 30 stocks in the Dow fell 3%, under pressure caterpillar follow one Morgan Stanley downgrades rating.
Bank of America, Goldman Sachs and Johnson & Johnson The latest results were released on Tuesday, while Morgan Stanley and United Airlines Results will be announced on Wednesday. Walgreens Boots Alliance, Netflix and Procter & Gamble Earnings are also scheduled to be released this week.
The reports will come after JPMorgan Chase & Co. and Wells Fargo kick off their third-quarter earnings season with high profile. Early signs of a recovery in bank sector profits helped push the broader market to record highs at the end of last week. On Friday, the S&P 500 closed above 5,800 for the first time, and the blue-chip Dow Jones also hit a record high.
So far, 30 S&P 500 companies have reported results, with average profits beating forecasts by about 5%, according to Bank of America. That’s better than the 3% growth seen at this time last quarter. Still, Bernstein believes this quarter’s annual earnings per share growth rate will be “much lower” than last quarter.
Even as markets climbed to record highs, investors remained anxious amid a hotly contested presidential election in three weeks, a sudden rise in U.S. Treasury yields, uncertainty over the pace of Fed policy easing and escalating geopolitical risks in the Middle East.
“Sentiment at all-time highs is probably a little nervous, so it wouldn’t be surprising to see some volatility return, especially in the last three or four weeks before the election,” said Ross Mayfield, investment strategist at Baird. “In three to six On a longer-than-month time horizon, we remain very bullish on the idea of lower interest rates, a soft landing for the economy, and earnings growth for the right reasons. “
Excluding reinvested dividends, the S&P 500 is up nearly 22% this year. recent bull market Two years oldSince hitting its closing low in October 2022, the benchmark has gained nearly 63%. Last year it exceeded 4.1% weekly.
Bond markets were closed Monday for Columbus Day.
About The Author
