Stocks Gain in Thin Trading – US Market Wrap
Stocks hit fresh all-time highs as investors looked ahead to Corporate America for further vindication of soft-landing bets.
Without much in the way of economic data this week, earnings reports are poised to drive Wall Street sentiment. The S&P 500 rose almost 1%, notching another record – its 46th this year. That’s a hint investors are not deterred by the reduced forecasts for third-quarter results, and are instead betting this reporting season will once again deliver positive surprises.
Strategists are predicting S&P 500 firms will post their weakest results in the past four quarters, with just a 4.3% increase compared with a year ago. Meantime, corporate guidance implies a jump of about 16%. That solid outlook suggests companies could easily beat market expectations.
The S&P 500 hovered near 5,860 amid thin trading volume. The Nasdaq 100 added 0.8%. The Dow Jones Industrial Average climbed 0.5%. NVIDIA led gains in megacaps, Apple gained on a bullish analyst call and Tesla rebounded after last week’s plunge. Goldman Sachs and Citigroup advanced ahead of results.
Treasury futures were marginally lower while cash trading was closed for a US holiday. The dollar edged up. Bitcoin jumped 5%. Oil declined after China’s highly anticipated Finance Ministry briefing on Saturday lacked specific new incentives to boost consumption in the world’s biggest crude importer.
