January 29, 2023

The shares rose to trade on the records as investors anticipated returns

U.S. stocks shook higher pre-trading losses on Monday as investors waited for signs that corporate profits would rise further as the second-quarter earnings season begins this week.

The S&P 500 and Nasdaq each set a maximum of all time. Dow destroyed previous losses and gained approximately 0.3% or over 100 points. The 10-year treasury yield was stable at about 1.35%, down from a five-month low of 1.3% last week.

Major companies will start releasing them Second-quarter results begin Tuesday JPMorgan Chase with Big Banks (J.P.M.) And Goldman Sachs (G.S.). S&P 500 companies are expected to increase their total revenue by 64% compared to last year, as the results were triggered by the strengthening of consumer demand due to the easing of epidemic-related restrictions earlier this year. According to Factset. This will increase to about 50% from the first quarter growth rate and represent the fastest pace for the index since 2009.

According to Goldman Sachs strategist David Ghost, investors need to focus on three key questions for companies entering the earnings season: how companies will maintain profit margins due to rising input costs and supply chain shortages, and policy uncertainties around cash uncertainties. Affects views.

“Global shipping woes, raw material inflation and severe shortages in both labor and semiconductors combine to increase costs for companies across the economy,” Costin wrote in a note Monday. “Investors are beginning to reward companies with attractive margin profiles.”

In addition to the earning season, this week Federal Reserve Chairman Jerome Powell will testify before Congress on Wednesday and Thursday with his half-year monetary policy statement. Pundits expect the Fed chairman to give a much worse tone to economic recovery and monetary policy compared to his recent public comments The mixed feed jobs report was given earlier This month and last week Fed minutes showing a central bank divided under the heading Tapping. Additional economic statements Consumer price inflation and retail sales this week The reopening is also expected to underscore the economic recovery covered by supply and demand fluctuations and high inflation.

“I think the recovery is on track, which has really slowed the pace of change,” said Kathy Jones, chief sustainable income strategist at Charles Swap. Yahoo told Accounting. “We have not been able to consistently grow 9% to 10% of GDP every quarter, so it’s going to be slow.”

“I think that’s one of the things that got in the markets [Treasury] It’s true that the Fed is going to raise rates faster than expected, “he added.” This sends a signal to the long end of the securities market that the central bank will not tolerate high inflation for long and they are going to step on the brakes soon … we do not think it will be like that. We think the economy is doing better and yields are improving again. ”

4:05 pm ET: S&P 500, Dow and Nasdaq set record as investors wait for returns

Here are the major moves in the markets until 4:05 pm:

  • S&P500 (GSPC): +15.07 (+ 0.34%) to 4,384.62

  • Dove (DJI): +126.02 (+ 0.36%) to 34,996.18

  • Nasdaq (X IXIC): +31.32 (+ 0.21%) to 14,733.24

  • Crude (CL = F): – 41 0.41 (-0.55%) to 15 74.15 per barrel

  • Gold (GC = f): – 00 4.00 (-0.22%) to 80 1,806.60 per ounce

  • 10 year treasury (DNX): 1.3630% yield +0.7 pps

11:55 am and: Broadcom shares rise on SAS corporate deal statement

Broadcom Shares (AVGO) The Wall Street Journal reported more than 1.5% gains on Monday following reports that the software company was in talks to buy SAS.

The deal is valued at between $ 15 billion and $ 20 billion. According to the report.

10:57 AM ET: Shares higher, S&P 500 and Nasdaq record higher

Three key indices were pushed into early morning in New York on Monday, with both the S&P 500 and the Nasdaq all-time highs.

While the real estate, finance and health sectors made modest gains in the S&P 500, the energy, consumer staples and utilities sectors were still in the red. Goldman Sachs, Disney and JPMorgan Chase performed well on the 30-share dove, with the rise in bank shares coming a day ahead of their earnings results.

10:15 am and: Virgin Galactic shares dive after company says it can sell up to $ 500 million worth of shares after test flight with France

Virgin Galactic Stocks (SPCE) Traded lower on Monday morning, trading lower than 12% after rising in early trade, after the company completed a successful test flight with founder Sir Richard Branson for the first time.

The company plans to sell up to $ 500 million worth of shares to investors in a report filed Monday, using an exaggeration surrounding the shares that go on the test flight. Any funds raised will be used for general capital purposes, including working capital, public and administrative matters and capital expenditure on its production capabilities, including the development of its space fleet and other infrastructure improvements, Virgin Galatic said in the filing.

The test flight with France was seen as a major milestone before the resumption of ticket sales for commercial spacecraft, which had been suspended since 2014. Earlier this year, the company already had 600 bookings for “Future Astronauts”, with tickets selling up to 250 250,000 each. Shares of Virgin Galactic have more than doubled since the year ended Friday.

9:30 a.m. ET: S&P 500, Nasdaq gains as Dove withdraws from records

Here is where the markets traded after the opening hour:

  • S&P500 (GSPC): -0.9 points (-0.02%) to 4,368.65

  • Dove (DJI): -66.74 (-0.19%) to 34,803.42

  • Nasdaq (X IXIC): +30.9 (+ 0.21%) to 14,590.83

  • Crude (CL = F): – $ 0.97 (-1.3%) to .5 73.59 per barrel

  • Gold (GC = f): – 40 7.40 (-0.41%) to 80 1,803.20 per ounce

  • 10 year treasury (DNX): 1.348% Yield -0.8 pps

7:24 am and ET Monday: The stock futures point to a mixed opening

Here is where Monday morning markets traded:

  • S&P 500 Futures (ES = F.): 4,349.5, -10.5 points (-0.24%)

  • Dove Futures (YM = F.): 34,604.00, -147.00 points (-0.42%)

  • Nasdaq Futures (NQ = F.): 14,841.75, +31.25 points (+ 0.21%)

  • Crude (CL = F): – From 23 1.23 (-1.65%) per barrel. Up to 73.33

  • Gold (GC = f): – 00 10.00 (-0.55%) to 8 1,800.60 per ounce

  • 10 year treasury (DNX): -1.2 pps yield 1.344%

Photographer: zz / STRF / STAR MAX / IPx 2021 3/21/21 New York Stock Exchange in Wall Street and the surrounding atmosphere and in the Lower Manhattan Financial District of New York City, March 21, 2021 during the global corona virus outbreak. Here, the New York Stock Exchange building. (NYC)

Emily McCormick is a reporter for Yahoo Accounting. Follow her on Twitter: emily_mcck