NEW YORK, Oct. 28 (Xinhua) — U.S. stocks ended higher on Monday, as investors anticipate a busy week of key economic data releases and quarterly earnings, especially from major tech companies.
The Dow Jones Industrial Average rose 273.17 points, or 0.65 percent, to 42,387.57. The S&P 500 added 15.40 points, or 0.27 percent, to 5,823.52. The Nasdaq Composite Index increased by 48.58 points, or 0.26 percent, to 18,567.19.
Nine of the 11 primary S&P 500 sectors ended in green, with financials and materials leading the gainers by adding 1.14 percent and 0.80 percent, respectively. Meanwhile, energy and technology dropped 0.65 percent and 0.07 percent, respectively.
Israel’s strike on Iran over the weekend did not impact the country’s oil supply, easing concerns for oil traders who typically view supply-driven price spikes more negatively than those driven by increased demand.
Look ahead, five of the “Magnificent Seven” megacap stocks are set to report this week: Alphabet on Tuesday, Microsoft and Meta Platforms on Wednesday, and Apple and Amazon on Thursday.
So far, over one-third of S&P 500 companies have posted third-quarter results, with approximately 75 percent surpassing Wall Street profit expectations, slightly under the five-year average of 77 percent, according to FactSet.
Cyclical companies are still citing sluggish demand, but mentions of “bottom” soared 56 percent year on year so far this earnings season, said Savita Subramanian, equity and quant strategist with Bank of America Securities, Inc. Additionally, S&P 500 companies’ mentions of weak demand fell to two-year lows.
“The cyclical bottom appears to be near, but we have yet to witness a full-fledged recovery, where a de-stocking cycle that appears to be over, the beginnings of an easing cycle where the trajectory is still debatable, and an upcoming election driving uncertainty may have corporates on pause,” said Subramanian in a research note on Monday.
In addition to major earnings reports, attention this week will turn to critical economic data, starting with the September JOLTS report on Tuesday and the weekly initial jobless claims on Thursday. Key releases include third-quarter GDP on Wednesday, and on Thursday, the personal income and spending report, which includes the Fed’s preferred inflation gauge, the core PCE price index. The week wraps up with the monthly jobs report on Friday.
