Traders work on the floor of the New York Stock Exchange.
NYSE
Stocks rose on Monday as investors braced for a barrage of corporate earnings reports while keeping an eye on Treasury yields.
The Dow Jones Industrial Average was up 250 points, or 0.6%. The S&P 500 rose 0.7% and the Nasdaq Composite rose 0.6%.
Technology stocks Intel, Microsoft and Cisco were among the Dow’s bigger gainers in Monday’s session. Consumer discretionary and financials were the best-performing sectors in the S&P 500.
Earnings season is picking up steam this week, with 11% of the S&P 500 expected to report results. Some notable names on board this week include Johnson & Johnson, Bank of America, Netflix and Tesla.
These results follow a solid start to the reporting period. Brokerage firm Charles Schwab rose more than 3% on Monday after beating Wall Street’s expectations for third-quarter earnings per share. JPMorgan Chase, Wells Fargo and UnitedHealth rose on Friday after reporting their latest quarterly results.
Some on Wall Street expect more volatility through the end of the year as yields and oil prices rise, inflation remains stubborn and conflict in the Middle East. But focusing on earnings and what the Federal Reserve will do with interest rates can give investors near-term optimism, according to Barclays analyst Ajay Rajadhyaksha.
“We expect bonds/equities to fluctuate in the near term,” Rajadhyaksha said in a note to clients on Monday. “Bond volatility and tensions in the Middle East are weighing on risky assets, but should be offset by gains and dovish Fed comments.”
Over the weekend, the Israeli military continued to urge residents to evacuate the northern Gaza Strip amid a much-anticipated ground invasion. Meanwhile, U.S. Senate Majority Leader Chuck Schumer, D-N.Y., said Sunday that the Senate would work to quickly pass a military aid package to help Israel fight Hamas.
The 10-year U.S. Treasury yield rose on Monday while oil prices fell as investors analyzed the latest information on the war.
Stocks have had a mixed session and week. The S&P 500 rose 0.5% for its second straight positive week, while the Dow Jones Industrial Average gained 0.8%. The Nasdaq Composite lost about 0.2% this week and fell 1.23% during Friday’s session, while the S&P fell 0.5% and the Dow gained 0.12%.