On Monday, US benchmark equity indexes experienced an uptick as traders eagerly anticipated the upcoming earnings reports from major technology firms later this week. The Dow Jones Industrial Average climbed 0.7% to reach 42,387.6, while both the S&P 500 and the Nasdaq Composite each rose by 0.3%, settling at 5,823.5 and 18,567.2, respectively.
The financial sector emerged as a leader among the gainers, while the energy and technology sectors faced decreases. Tech giants such as Apple, Microsoft, Alphabet (Google's parent company), Amazon.com, and Meta Platforms (the parent company of Facebook) are set to disclose their most recent quarterly financial results within the week.
To date, approximately 37% of S&P 500 companies have reported results, showing a 3.6% increase in quarterly profits year-over-year, coupled with a 3.9% growth in revenue, as noted by Oppenheimer Asset Management in a client communication. In specific company news, 3M saw its shares rise by 4.4%, making it the top gainer on the Dow and one of the best performers within the S&P 500, following JPMorgan's adjustment of its price target from $160 to $165 while maintaining an overweight rating.
McDonald's emerged as another strong performer on the Dow, gaining 1.4%. The fast-food leader announced on Sunday the return of its Quarter Pounder hamburgers across all locations this week, after ruling out beef patties as the cause of a recent E. coli outbreak. In contrast, Boeing announced an offering of 90 million common shares as it seeks to raise capital amid an ongoing labor strike that has negatively impacted its financial standing, which resulted in a 2.8% decline in the company’s shares, marking the steepest drop on the Dow.
Centene was identified as the second-worst performer on the S&P 500, falling 4% after Jefferies adjusted its price target from $72 to $68 while maintaining a hold rating. West Texas Intermediate crude oil prices dropped 5.4%, settling at $67.93 per barrel. D.A. Davidson highlighted in a Monday client note that these prices saw a significant decline following Israel's retaliatory strike on Iran over the weekend, which spared oil and nuclear facilities and did not undermine energy supply chains.
The 10-year US Treasury yield rose by 4.6 basis points to 4.28%, while the yield on the two-year note increased by 3.5 basis points to 4.13%. In additional economic news, the Federal Reserve Bank of Dallas reported an unexpected improvement in Texas manufacturing activity, transitioning into less severe contraction territory in October as production turned positive.
Florida is facing a housing affordability crisis worsened by increasing property taxes driven primarily by migration trends observed during the pandemic, along with heightened climate disasters, as reported by Redfin. Gold prices held steady at $2,755.20 per troy ounce, while silver saw a slight increase of 0.3%, reaching $33.87 per ounce..