Text size
It’s shaping up to be another eventful week for Wall Street.
Ed Jones/AFP via Getty Images
Stocks were mostly higher Monday, with technology stocks continuing to lead the three major indexes. Investors were also looking ahead at to the conclusion of earnings season.
Shortly after the open, the
Dow Jones Industrial Average
was little changed, after the index slipped 21 points Friday to close at 35,089. The
S&P 500
rose 0.2%, with the technology-heavy
Nasdaq Composite
up 0.6%.
Friday, the Nasdaq gained 1.6% as investors bought up beaten-down tech names after
Meta Platforms‘ (ticker: FB) disappointing earnings report and outlook caused a wave of selling. That added to an already painful period for tech stocks this year, which have been hit hard by rising bond yields as the Federal Reserve looks to lift interest rates and reduce the size of its balance sheet. Higher yields make future profits less valuable and many tech companies are expecting a bulk of their profits to come many years in the future. The Nasdaq is still down 12% from its late November all-time high.
But late last week companies like
Amazon.com, (AMZN)
Snap (SNAP) and
Pinterest (PINS) reported better-than-expected earnings, sending those stocks—and the rest of tech—higher.
Looking ahead, fourth-quarter earnings season is drawing to a close with a few more large companies still to report. This week, about 9% of the S&P 500’s market capitalization will report earnings, including
Pfizer (PFE),
Disney (DIS),
PepsiCo (PEP),
Coca-Cola (KO) and
CVS Health (CVS).
Already, about three quarters of the S&P 500’s market cap has reported earnings, with the aggregate earnings result beating estimates by almost 8% and the majority of companies beating by any margin, according to Credit Suisse.
That hasn’t helped stocks much. That’s because investors are still reassessing stock valuations—and when those are too high, investors demand an even larger earnings beat to buy more shares of the reporting company.
Overseas, London’s
FTSE 100
rose 0.7% while Tokyo’s
Nikkei 225
ended the day 0.7% lower.
In the commodity space, oil prices were easing back from seven-year highs. U.S. futures for West Texas Intermediate crude were down about 0.9% to just below $92 a barrel. The oil benchmark began the year at just $76.
It was a buoyant day for cryptocurrencies. Bitcoin, the leading digital asset, was up almost 2% over the past 24 hours to above $42,000, according to data from CoinDesk, having breached the psychologically-important $39,000 mark Friday.
Here are five stocks on the move Monday:
Peloton (PTON) shot up almost 26% amid speculation that companies including Amazon,
Nike (NKE), and
Apple (AAPL) may be considering a takeover of the embattled home-workout group. Shares in Peloton are down more than 31% so far this year.
Spirit Airlines (SAVE) stock gained 16% after news broke that it will merge with
Frontier Group Holdings (ULCC), which saw its stock rise 2.7%.
Tyson Foods (TSN) stock gained 9.2% after the company reported a profit of $2.87 a share, beating estimates of $1.93 a share, on sales of $12.9 billion, above expectations for $12.2 billion.
Snowflake (SNOW) stock gained 7.4% after getting upgraded to Overweight from Equal Weight at Morgan Stanley.
Write to Jacob Sonenshine at jacob.sonenshine@barrons.com and Jack Denton at jack.denton@dowjones.com