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Traders work on the floor of the New York Stock Exchange.
NYSE
Stocks were higher Monday as Wall Street braced for quarterly reports from some of the biggest companies in the world.
The Dow Jones Industrial Average traded 60 points higher, or 0.2%. The S&P 500 climbed 0.2%, while the Nasdaq Composite advanced 0.4%.
The second-quarter earnings season gains steam this week with results from big financial institutions such as Bank of America, Morgan Stanley and Goldman Sachs. Results are also due from United Airlines, Las Vegas Sands and technology giants Tesla and Netflix.
Wall Street are bracing for what be a gloomy season with lower profits. Analysts forecast a more than 7% decline in S&P 500 earnings from a year ago, according to FactSet.
This week also ushers in the Fed’s “blackout period” ahead of its July policy meeting. Traders anticipate a near 97% chance the central bank increases interest rates later this month, after pausing hikes in June, according to CME Group’s FedWatch tool.
Stocks are coming off a winning week that saw the Dow Jones Industrial Average gain 2.3% to notch its best weekly gain since March. The S&P 500 and Nasdaq Composite added 2.4% and 3.3%, respectively. On Friday, the Dow rose 113.89 points, or 0.33%, while the S&P and Nasdaq slipped 0.1% and 0.18%, respectively.
“I think the market is kind of overjojyed with the disinflationary, soft landing scenario,” Ed Yardeni, president of Yardeni Research told CNBC’s “Squawk Box” on Monday. “I’ve been thinking for quite some time that we’re in a recession, but I argued that it’s a rolling recession, not an economy-wide recession. Now I think we’re in a rolling recovery.”
Shares of tech-giant Apple added 1.1%, while Tesla climbed roughly 3%. Shares of JPMorgan Chase ticked up 1.8%.
The moves came on the heels of solid big bank earnings and softer inflation reports that lifted investor sentiment. That heightened some hopes the Federal Reserve may be able to tamp down inflation without tipping the economy into a recession.
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