Nasdaq, S&P, Dow rise to start heavy earnings week; The sales force profited from the shares of Elliott
Wall Street’s main indexes were on track to extend their rally into a second straight session on Monday, helped by gains in technology stocks. Investors are also bracing for an earnings week that will see many big names report their returns. quarterly results.
In the last hour of trading, the three moving averages have dropped to session highs but are set to end in the green.
The tech-heavy Nasdaq Composite (COMP.IND) to be up 1.71% up 11,331.31 points. The benchmark S&P 500 (SP500) to be 0.97% higher up 4,011.06 points, while the blue-chip Dow (DJI) add 0.56% up 33,563.06 points.
Of the 11 S&P sectors, nine were in the green, with the heavyweights Technology and Communications Services being the top gainers.
All three indexes added to a solid rally on Friday. Market participants are watching a flurry of earnings reports this week from companies like Johnson & Johnson (JNJ), Microsoft (MSFT), Boeing (father), IBM (IBM), Tesla (TSLA), Passport (DRAW) and Chevron (CVX). Meanwhile, the Federal Reserve will step back this week as the monetary policy committee enters a pause before its February meeting.
Wells Fargo economist Jay Bryson and team write: “We expect the Committee to raise rates by 25 basis points on February 1, bringing the target range for the federal funds rate to 4 ,50% -4.75%. “Fed policymakers appear to be entering the refining phase of this tightening cycle.”
“However, inflation remains too high for the Fed to want, and most FOMC members continue to state publicly that interest rates need to move higher to bring inflation back to the 2% target. fund is up 25 bps at each meeting on Feb 1, Mar 22 and May 3. If materialized, the target range would end the tightening cycle at 5.00% -5.25 % at the beginning of May.”
The S&P 500 Index (SP500) on Friday to post first weekly loss in the new year after a sharp rise in the first half of January, as economic data added to concerns about slowing growth.
JPMorgan’s Marko Kolanovic said in a research note: “Recently weakening economic data and anticipated falling earnings expectations are indicating that markets are likely to move lower, in the view of we”.
“Amid these negative developments, markets have recovered and, in many segments, have risen significantly higher this year. The recent positive inflow has been largely driven by systematic inflows. In Europe, optimism may have been misplaced that has caused trend-following programs to reverse positions from completely short to long.However, we think these drivers are drying up and recessions are not currently priced in Stocks,” added Kolanovic.
Prices were higher on Monday. The yield on the 10-year Treasury note (US10Y) rose 4 basis points to 3.52%, while the 2-year yield (US2Y) increased by 5 basis points to 4.23%.
Of the active stocks, Dow (DJI) Salesforce component (CRM) advanced after a report that activist investor Elliott Management gave take a big stake in company.
chip stocks achieveat the top is AMD (AMD), Qualcomm (QCOM) and Seagate (STX) after companies receive a rating upgrade from Barclays.
Xylem (XYL) is the stock with the most losses on the S&P 500 (SP500) after the company agree to buy Evoqua water (WATER) in a deal worth ~$7.5 billion. Evoqua is up more than 12%.