(Businesshala) – US stock indexes rose on Monday and financial stocks edged higher, stoking inflation concerns in a third-quarter earnings report from later this week.
Mega-caps Apple Inc., Tesla Inc. and Microsoft Corp. rose between 0.6% and 1%, trading in nine of the 11 major S&P 500 sector indexes.
Mike Zigmont, head of research and trading at Harvest Volatility Management in New York, said, “Investors see the S&P 500 largely past its all-time highs and there’s no headline to scare them away from buying, so they’re buying as they are. usually do.” York.
“Today’s bullishness is a return to investor habits that were established after the pandemic selloff.”
The S&P 500 financial sector index rose 0.7%, while banks added 0.6% ahead of earnings reports from JPMorgan Chase & Co on Wednesday and Bank of America Corp, Morgan Stanley and Citigroup Inc on Thursday. Goldman Sachs will report the results on Friday.
Analysts expect S&P 500 companies’ profits to rise 29.6% year-over-year in the third quarter, down from 96.3% growth in the second quarter, according to IBES data from Refinitiv.
“At the beginning of the year, there was a general consensus that inflation was going to be transitory, it is hard to say that now we are seeing supply chain log jams that have not subsided,” said Max Gokhman, chief investment officer at AlphaTrAI.
“Margins have now grown so much for companies that there is a real concern that companies will either not be able to beat their earnings expectations or guidance for the next quarter.”
Markets were bearish earlier in the day after US oil rose nearly 3% to hit a seven-year high on fears of higher inflation.
However, rising oil prices pushed the S&P 500 energy sector up 1.2% to its highest level since January 2020, helping the index recover all of its pandemic losses.
Graphic: S&P 500 vs Energy,
At 11:56 am, the Dow Jones Industrial Average was up 171.61 points, or 0.49%, at 34,917.86, the S&P 500 was up 18.57 points, or 0.42%, at 4,409.91, and the Nasdaq Composite was up 72.05 points, or 0.49%. , at 14,651.59.
Wall Street’s main indexes ended higher last week, with investors still hoping the Federal Reserve will begin reducing asset purchases later this year.
After last week’s data showed weaker-than-expected job growth in September, this week will focus on inflation and retail sales numbers, as well as minutes from the Fed’s last meeting that could confirm that November’s Tapering was discussed.
Among individual stocks, Southwest Airlines Co slipped 1.3% on a report that it canceled at least 30% of its scheduled flights on Sunday.
Advancing issues declined from a 2.50-to-1 ratio on the NYSE and 1.59-to-1 on the Nasdaq. The S&P index recorded 40 new 52-week highs and five new lows, while the Nasdaq posted 76 new highs and 89 new lows.
US bond markets were closed on Monday for a federal holiday.