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U.S. stocks rose on Monday while bonds sold off, as investors turned their attention to the third-quarter earnings season that begins in earnest this week. Wall Street’s benchmark S&P 500 (SP500) is posting back-to-back weekly gains.
WTI crude oil oil futures (CL1:COM) fell after last week’s rise, as market participants closely monitored the ongoing conflict between Israel and the Islamist group Hamas.
Cryptocurrencies attracted some attention, with bitcoin (btc-USD) rising more than 4% after a report that the US Securities and Exchange Commission (SEC) had decided not to appeal a ruling that overturned its rejection of the Grayscale’s offer to launch a bitcoin ETF. Additionally, Bloomberg News reported that BlackRock’s application for an ETF was still under review by the SEC.
At noon, the Dow Jones (dji) led the main averages, advancing 1.05% at 34,024.35 points. The S&P (SP500) gained 1.04% to 4,372.66 points, while the tech-heavy Nasdaq Composite (IND COMP.) added 0.98% at 13,538.59 points.
All 11 S&P sectors were in positive territory, led by Consumer Discretionary and Healthcare.
Treasury yields were higher. The 30-year yield (US30Y) rose 9 basis points to 4.87%, while the 10-year yield (US10Y) rose 8 basis points to 4.71%. The more rate-sensitive 2-year yield (US2Y) rose 3 basis points to 5.08%.
See live data on how Treasury yields are performing across the curve on the Seeking Alpha bond page.
Focus in the coming days will be on the quarterly results of several major companies, including Goldman Sachs (GS), Johnson & Johnson (JNJ), Netflix (NFLX), and Tesla (TSLA). The last two names could have the biggest impact on the overall market, given their size.
stocks finished last week with a mixed performance, with the S&P 500 (SP500) posting gains of 0.45%. The index was helped by comments from several Federal Reserve officials who suggested the central bank could keep rates steady in light of the huge rise in Treasury yields. Those comments helped offset better-than-expected producer and consumer inflation data, along with geopolitical concerns spurred by Hamas’ attack on Israel.
“The main scheduled economic event (last week) was the September CPI report, and the 0.323% increase in core CPI, excluding food and energy, was a step away from our 0.33% forecast. However “The details of the report were somewhat disappointing, as other measures of the central tendency of price growth, such as the median and the trimmed mean, became firmer,” JPMorgan’s Michael Feroli said on Friday.
“Despite this gain, and despite last week’s strong employment gain, Federal Reserve officials (hawks, doves and centrists) seemed to signal that there will be no change in policy at the next FOMC meeting early November. We continue to see the Fed on hold. (The) thorny CPI reading makes the December meeting more interesting, there is much more to come between now and then, including two more jobs reports and a possible closing of the government,” added Feroli.
In active stocks on Monday, Charles Schwab (SCHW) was the biggest gainer on the S&P 500 (SP500), after the brokerage firm posted higher quarterly earnings and its finance chief said outflows. capital were beginning to decline.
Pfizer (PFE) was also among the S&P’s top percentage gainers, recovering from an after-hours drop on Friday following a guidance cut due to lower demand for its COVID-19 products.
