The major averages all closed in the green during Monday's main trading session. Although Treasury yields climbed higher — which typically puts downward pressure on equities — stocks posted gains as investors became optimistic about corporate earnings. The7 basis points to 4.7% on Monday. Nonetheless, the yield on the 10-year Treasury is still more than 10 basis points lower than its 16-year highs from earlier in the month. Small caps also rallied Monday, with the Russell 2000 rising 1.6%.
A total of 53 companies in the S&P 500, or about 11% of the index, are scheduled to report results this week. Five names in the Dow will also be releasing their results. Key reports on Tuesday morning include Johnson & Johnson, Bank of America, Goldman Sachs and Lockheed Martin."If the economy is going to re-accelerate, which it is doing, and if profits growth is going to re-accelerate, which it is doing, then small caps should lead the way.
Several financial names kicked off earnings season to a strong start, including Charles Schwab on Monday and JPMorgan Chase on Friday. This has helped improve market sentiment amid concerns surrounding the Israel-Hamas war. The conflict in the Middle East has sparked concerns that tensions in the region may escalate to some of the biggest oil producers, notably Iran.
The grim geopolitical and inflation worries have raised market negativity,"but they are also the wall of worry that ascending stock prices scale," said George Ball, chairman at Sanders Morris Harris.In addition to Tuesday's earnings reports, Wall Street will also be keeping an eye out for fresh economic data. Retail sales and industrial production data for September will be released before the bell.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: NBCLA - 🏆 319. / 59 Read more »
Source: NBCDFW - 🏆 288. / 63 Read more »
Source: NBCLA - 🏆 319. / 59 Read more »