The Dow Jones Industrial Average and the S&P 500 extended their record closing streaks on Monday as traders eagerly anticipated crucial corporate earnings scheduled for later in the week. The S&P 500 increased by 0.8%, reaching 5,859.9, while the Dow rose 0.5% to close at 43,065.2, marking its first close above 43,000.
The Nasdaq Composite achieved a 0.9% gain, closing at 18,502.7. Excluding energy, all sectors showed gains, with technology and utilities leading the charge. Major corporations such as UnitedHealth, Johnson & Johnson, Bank of America, Goldman Sachs, Citigroup, Netflix, Morgan Stanley, Procter & Gamble, and American Express are set to report their latest quarterly financial results later this week, fueling market speculation and trading activity. In notable company news, shares of Vistra surged by 5.6%, making it the best performer on the S&P 500 after BNP Paribas Exane initiated coverage with an 'outperform' rating and a $231 price target.
Applied Materials was also among the top gainers, experiencing a 4.3% increase on both the S&P 500 and the Nasdaq. Longboard Pharmaceuticals announced its agreement to be acquired by Danish pharmaceutical company H. Lundbeck in a deal valued at approximately $2.6 billion, resulting in a significant surge of nearly 52% in Longboard's shares. Conversely, Boeing faced challenges, recording the second steepest decline on the Dow with a 1.3% drop.
In a concerning development, the troubled aircraft manufacturer outlined plans to reduce its workforce and reported a preliminary Q3 loss that exceeded Wall Street's expectations. In the crude oil market, West Texas Intermediate saw a decline of 2.1%, settling at $73.96 per barrel on Monday. Analysts from D.A.
Davidson commented that oil prices reversed last week's gains due to concerns over Chinese demand, while traders remained wary of potential Israeli attacks on Iranian oil infrastructure. In a report highlighting the state of the global oil market, the Organization of the Petroleum Exporting Countries adjusted its global oil demand projections for 2024 and 2025 downward while maintaining its supply estimates. Recent economic indicators, including a hotter-than-expected consumer inflation report and robust job statistics, suggest that the economy may not be decelerating as significantly as desired, according to Federal Reserve Governor Christopher Waller.
He emphasized, 'While we do not want to overreact to this data or look through it, I view the totality of the data as indicating that monetary policy should proceed with more caution regarding the pace of rate cuts than was deemed necessary at the September meeting.' Additionally, Minneapolis Fed President Neel Kashkari indicated the likelihood of 'further modest reductions' in the Fed's benchmark lending rate in the upcoming quarters, as reported by Reuters.
He stated, 'Ultimately, the path forward for policy will be driven by the actual economic, inflation, and labor market data.' Last month, the Federal Open Market Committee cut interest rates by 50 basis points. Market analysts are currently pricing in an 84% probability that the FOMC will opt for a 25 basis point rate cut next month, with the remaining odds favoring no change in rates, according to the CME FedWatch tool. On another note, the US bond market remained closed on Monday in observance of Columbus Day.
In commodities, gold fell by 0.3%, settling at $2,669.30 per troy ounce, while silver decreased by 0.9% to reach $31.47 per ounce..