Stock market today: Dow holds near record with wave of earnings ahead

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Facebook is the first of the US tech giants to publish results this week.

Denis Charlet / AFP via Getty Images

Shares were higher on Monday, as investors anticipated a surge in corporate earnings this week.

At noon, the

Dow Jones Industrial Average

was up 35 points, or 0.1%, after the index climbed 73 points to a record high on Friday. The

S&P 500

– which remained near an all-time high set last week – rose 0.3%, while the

Nasdaq Composite

increased by 0.5%.

Even though the major indices weren’t showing exceptional returns, just over 60% of S&P 500 stocks were advancing, according to FactSet.

This week, 164 constituents of the S&P 500 Index, including 10 of the 30 constituents of the Dow Jones, will release results. These include some of America’s biggest tech companies – Facebook (ticker: FB), Microsoft (MSFT), Alphabet (GOOGL), Apple (AAPL), Amazon (AMZN) – alongside General Electric (GE), Boeing (BOE), General Motors (GM), Caterpillar (CAT), Exxon Mobil (XOM), Visa (V) and others.

Over the next two weeks, more than half of the index’s market cap will report earnings, according to Credit Suisse.

Investors took advantage of strong corporate earnings last week to help markets shed a funk that had weighed on stocks for much of the previous month. About 85% of S&P 500 companies that reported earnings beat Wall Street expectations, up from 76% on average over five years, according to Jim Reid, a strategist at Deutsche Bank.

The overall profit result on the S&P 500 exceeded expectations by 10%, according to Credit Suisse.

All eyes will be on Facebook after Snap shares (SNAP) fell 26.6% on Friday, putting pressure on Facebook stock, which fell 5.1%. Snap’s earnings showed a surprisingly large impact on its advertising business, blamed in part on the privacy changes Apple made to its mobile operating system. The same changes could hurt Facebook.

The S&P 500 is up just over 5% from its October 4 low following a recent pullback as the earnings season has begun.

While businesses still experience rising costs as supplies are limited, businesses are still able to maintain growing profit margins, and investors are not yet concerned that supply chain challenges will persist in the future. .

“Companies have cited margin issues and supply chain disruptions, but so far management have been able to overcome these issues and investors view the disruptions as temporary and instead focus on demand. strong and ongoing, ”wrote Tom Essaye, founder of Sevens Report Research. .

The gains are getting all the attention now, but they won’t be for long. The U.S. Federal Reserve’s monetary policy body, the Federal Open Market Committee (FOMC), will meet on November 2-3, when markets expect the central bank to announce that it will begin cutting its program of ‘monthly asset purchases. .

Overseas, Hong Kong

Hang Seng Index

ended just above the dish, and the one in London

FTSE 100

was 0.3% higher.

Here are six actions in motion Monday:

You’re here

(TSLA) was up 6.5% after reports that

Hertz Global Holdings

(HTZZ) is looking to buy 100,000 Tesla electric vehicles.

Kimberly clark

(KMB) fell 3.8% after the company reported earnings of $ 1.62 per share, missing estimates of $ 1.65 per share, on sales of $ 5.01 billion, higher than expectations of $ 4.99 billion.

International restaurant brands

The stock (QSR) fell 3.9% after the company reported earnings of 76 cents per share, beating estimates of 74 cents per share, on revenue of $ 1.5 billion, below expectations of $ 1.52 billion.


The stock (FIVN) fell 0.3% even after being overweight the sector weighting at KeyBanc Capital Markets.

Pay Pal

(PYPL) rose 3.5% after the payments giant said over the weekend that it would not pursue the acquisition of the social network Pinterest (PINS).


fell 12%.

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