Stock prices rose during mid-morning trading on Monday, building on earlier gains as investors prepared for a host of corporate earnings this week. Wall Street also braced for rising geopolitical tensions as the U.S. sought to advance its efforts to contain the Israel-Hamas conflict.
The Dow Jones Industrial Average (^DJI) rose 1.1%, or nearly 400 points, while the S&P 500 (^GSPC) gained about 1.2%. The tech-heavy Nasdaq Composite (^IXIC) gained more than 1%.
Earnings season is picking up steam this week, with reports from Goldman Sachs (GS) and Bank of America (BAC) expected on Tuesday following upbeat results from their Wall Street peers. Updates from Tesla (TSLA) and Netflix (NFLX) kick off tech gains on Wednesday, which will likely be scrutinized for clues about the sector’s resilience in the face of longer-term higher interest rates.
Read more: What a Fed pause on rate hikes means for bank accounts, CDs, loans and credit cards
Along with JPMorgan’s earnings on Friday, CEO Jamie Dimon said this may be “the most dangerous time the world has seen in decades,” a warning that still resonates days later.
Investors remain focused on the crisis in the Middle East – and currently on the question of whether the US and its allies can prevent the conflict from involving other countries, particularly Iran. Some analysts believe a full-scale regional conflict could cause oil prices to rise well above $100 a barrel and threaten a global recession.
Crude oil futures (CL=F) and Brent crude oil futures (BZ=F) traded in a narrow range around $87 and $91 a barrel, respectively, on Monday after rising nearly 6% on Friday.
But gold and bond prices fell, attracting investors seeking safe havens. The 10-year Treasury yield (^TNX) rose to 4.69%, recouping some of its losses from last week.
Rite Aid files for bankruptcy
Rite Aid (RAD) filed for bankruptcy protection Sunday evening as the company grapples with declining sales and a looming opioid lawsuit hanging over the retail pharmacy chain.
The bankruptcy is part of an effort to close unprofitable stores, resolve legal disputes over the company’s role in the opioid pandemic and deal with its roughly $4 billion debt load.
The company said its Chapter 11 bankruptcy filing will help resolve legal claims “equitably” after the Justice Department filed a complaint in March against Rite Aid over its role in the opioid crisis. The complaint alleged that Rite Aid filled “hundreds of thousands” of prescriptions that did not meet legal requirements.
In the filing, Rite Aid said the bankruptcy process will help it move away from leases in undesirable locations, noting that the company is currently “burdened” by unprofitable stores that it cannot exit.
Stock trends in morning trading
Here are some of the stocks and cryptocurrencies topping Yahoo Finance’s Trend Ticker page in morning trading on Monday:
Tesla (TSLA): Shares of the electric car maker rose more than 1% Monday morning as investors positioned ahead of the company’s earnings on Wednesday. While Detroit’s three major automakers are still struggling with ongoing strikes, Tesla recently missed Wall Street estimates for third-quarter deliveries and margins remain a key concern for the electric vehicle maker. Margins have declined throughout 2023 as the company used price cuts to stimulate demand.
Bitcoin (BTC USD): The price of the dominant cryptocurrency rose 5% on Monday morning after the Securities and Exchange Commission did not appeal a recent decision on crypto asset manager Grayscale’s application to approve a Bitcoin exchange-traded fund (ETF).
CVS (CVS): Shares of the pharmacy chain rose 1.7% in morning trading after rival drugstore operator Rite Aid (RAD) filed for bankruptcy. Shares of Rite Aid fell more than 5%.
Lululemon (LULU): Lululemon shares rose more than 8% as the sportswear company prepares to join the S&P 500 index.
Pfizer Inc. (PFE): Shares of Pfizer fell over 1% on Monday after the drugmaker cut sales forecast for its COVID vaccine. The news weighed on other COVID-heavy stocks. Moderna (MRNA) and BioNTech (BNTX), Pfizer’s COVID vaccine partner, both fell more than 6%.
Stocks open higher as tech companies prepare for earnings
Wall Street sent stocks higher Monday morning as investors and technology companies prepared for quarterly earnings scheduled later this week, particularly from Tesla (TSLA) and Netflix (NFLX).
The S&P 500 (^GSPC) rose about 0.5%, while the Dow Jones Industrial Average (^DJI) gained 0.6%, or about 200 points. The tech-heavy Nasdaq Composite (^IXIC) gained 0.3%.
Rite Aid, Lululemon and Pfizer: Stock Trends in Premarket Trading
Here are some of the stocks topping Yahoo Finance’s trend ticker page in premarket trading on Monday:
Rite Aid Corporation (RAD): Shares of Rite Aid fell more than 5% as the pharmacy chain filed for bankruptcy.
Lululemon (LULU): Lululemon shares rose over 5%. The sportswear maker is about to be added to the S&P 500 index.
Pfizer Inc. (PFE): Shares of Pfizer fell over 1% on Monday after the drugmaker cut sales forecast for its COVID vaccine. The news weighed on other COVID-heavy stocks, as Moderna (MRNA) and BioNTech (BNTX), Pfizer’s COVID vaccine partner, both fell more than 4%.
Manchester United plc (MANU): Manchester United shares fell 9% on fears a takeover by Qatar’s Sheikh Jassim bin Hamad al Thani could be off the table.
KDow futures rise as Middle East tensions take center stage
U.S. stock futures were mixed, with technology stocks lagging as investors awaited signs of escalation in the Israel-Hamas conflict and a busy week of earnings ahead.
Dow Jones Industrial Average futures (^DJI) rose 0.40%, or 135 points, while S&P 500 futures (^GSPC) rose 0.28%. Contracts on the technology-heavy Nasdaq 100 (^NDX) fluctuated around the zero line.
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