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U.S. stocks ended sharply higher on Monday as investors awaited a deluge of corporate earnings results and shrugged off fears that escalated last week following the Israel-Hamas war. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.9% or 314.25 points to finish at 33,984.54 points and record their sixth day of gains in the past seven trading sessions.
The S&P 500 jumped 1.1% or 45.85 points, to end at 4,373.63 points. Utilities, industrials, financials, communication services, consumer discretionary and tech stocks were the biggest winners.
The Utilities Select Sector SPDR (XLU) and Industrials Materials Select Sector SPDR (XLI) gained 1% and 1.1%, respectively. The Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) each added 1.6%. The Financials Select Sector SPDR (XLF) rose 1.1%, while the Technology Select Sector SPDR (XLK) gained 1%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 1.2% or 160.75 points to close at 13,567.98 points.
The fear-gauge CBOE Volatility Index (VIX) was down 10.92% to 17.21. A total of 9.60 billion shares were traded on Monday, lower than the last 20-session average of 10.38 billion. Advancers outnumbered decliners on the NYSE by a 2.59-to-1 ratio. On the Nasdaq, a 1.91-to-1 ratio favored advancing issues.
Q3 Earnings Season in Focus as Investors Shrug off Geopolitical Tensions
Stocks rallied on Monday as investors shrugged off the fears arising from the recent Israel-Hamas conflict and shifted focus to the third-quarter earnings season, which officially started on Friday. Also, crude oil prices settled lower after hitting their highest level on Friday since the surprise attack by Hamas on Israel earlier this month.
The West Texas Intermediate (WTI) crude for November delivery dropped by $1.03, or 1.2%, to settle at $86.66 per barrel on the New York Mercantile Exchange.
Crude prices have stayed below the peak levels of 2023 that were recorded in late September before the Hamas attack. Analysts anticipate that oil will continue to serve as an indicator for other asset prices.
On Monday, treasury yields rose again. The 10-year Treasury yield increased almost 8 basis points higher at 4.71%, while the 2-year Treasury yield rose nearly 5 basis points to settle at 5.101%.
However, investors remained confident as they now believe that the Middle East conflict isn’t going to have much impact on the U.S. markets. Instead, they are now more focused on the third-quarter earnings season, which has begun with the big banks.
Market participants are confident that U.S. companies will come up with solid quarterly reports this time around after a mediocre second quarter. This sent stocks on a rally on Monday.
A number of major Wall Street banks such as Bank of America Corporation ((BAC - Free Report) ) and The Goldman Sachs Group, Inc. ((GS - Free Report) ) are scheduled to report their quarterly results on Tuesday. Shares of Bank of America and Goldman Sachs rose 0.9% and 1.7%, respectively. Bank of America has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, Netflix, Inc. ((NFLX - Free Report) ) and Tesla, Inc. ((TSLA - Free Report) ) will be reporting their earnings this week.
Economic Data
The New York Federal Reserve's Empire State business-conditions index, which measures manufacturing activity in the state, dropped marginally by 6.5 points in October to reach a negative 4.6. Economists had forecast a reading of negative six.
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Stock Market News for Oct 17, 2023
U.S. stocks ended sharply higher on Monday as investors awaited a deluge of corporate earnings results and shrugged off fears that escalated last week following the Israel-Hamas war. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.9% or 314.25 points to finish at 33,984.54 points and record their sixth day of gains in the past seven trading sessions.
The S&P 500 jumped 1.1% or 45.85 points, to end at 4,373.63 points. Utilities, industrials, financials, communication services, consumer discretionary and tech stocks were the biggest winners.
The Utilities Select Sector SPDR (XLU) and Industrials Materials Select Sector SPDR (XLI) gained 1% and 1.1%, respectively. The Communication Services Select Sector SPDR (XLC) and the Consumer Discretionary Select Sector SPDR (XLY) each added 1.6%. The Financials Select Sector SPDR (XLF) rose 1.1%, while the Technology Select Sector SPDR (XLK) gained 1%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 1.2% or 160.75 points to close at 13,567.98 points.
The fear-gauge CBOE Volatility Index (VIX) was down 10.92% to 17.21. A total of 9.60 billion shares were traded on Monday, lower than the last 20-session average of 10.38 billion. Advancers outnumbered decliners on the NYSE by a 2.59-to-1 ratio. On the Nasdaq, a 1.91-to-1 ratio favored advancing issues.
Q3 Earnings Season in Focus as Investors Shrug off Geopolitical Tensions
Stocks rallied on Monday as investors shrugged off the fears arising from the recent Israel-Hamas conflict and shifted focus to the third-quarter earnings season, which officially started on Friday. Also, crude oil prices settled lower after hitting their highest level on Friday since the surprise attack by Hamas on Israel earlier this month.
The West Texas Intermediate (WTI) crude for November delivery dropped by $1.03, or 1.2%, to settle at $86.66 per barrel on the New York Mercantile Exchange.
Crude prices have stayed below the peak levels of 2023 that were recorded in late September before the Hamas attack. Analysts anticipate that oil will continue to serve as an indicator for other asset prices.
On Monday, treasury yields rose again. The 10-year Treasury yield increased almost 8 basis points higher at 4.71%, while the 2-year Treasury yield rose nearly 5 basis points to settle at 5.101%.
However, investors remained confident as they now believe that the Middle East conflict isn’t going to have much impact on the U.S. markets. Instead, they are now more focused on the third-quarter earnings season, which has begun with the big banks.
Market participants are confident that U.S. companies will come up with solid quarterly reports this time around after a mediocre second quarter. This sent stocks on a rally on Monday.
A number of major Wall Street banks such as Bank of America Corporation ((BAC - Free Report) ) and The Goldman Sachs Group, Inc. ((GS - Free Report) ) are scheduled to report their quarterly results on Tuesday. Shares of Bank of America and Goldman Sachs rose 0.9% and 1.7%, respectively. Bank of America has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Also, Netflix, Inc. ((NFLX - Free Report) ) and Tesla, Inc. ((TSLA - Free Report) ) will be reporting their earnings this week.
Economic Data
The New York Federal Reserve's Empire State business-conditions index, which measures manufacturing activity in the state, dropped marginally by 6.5 points in October to reach a negative 4.6. Economists had forecast a reading of negative six.