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U.S. stocks hit record highs on Monday as investors brace for a wave of earnings reports.
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More than 80 S&P 500 companies, including Netflix and Goldman Sachs, report earnings this week.
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Federal Reserve Governor Waller recommended caution about future rate cuts.
U.S. stocks rose about 1% on Monday, driving the S&P 500 and Dow Jones Industrial Average to all-time closing highs as investors prepare for a wave of third-quarter earnings this week.
Monday’s close marked the S&P 500’s record 46th close of the year, as investors continue to push the two-year bull market higher. The Dow Jones closed above 43,000 points for the first time.
More than 80 S&P 500 companies are scheduled to report third-quarter earnings results this week, with big names including Netflix, Goldman Sachs and Morgan Stanley.
According to Fundstrat data, 6% of S&P 500 companies have already reported their results. Of those, 74% beat earnings estimates by a median of 6%, while 58% beat revenue estimates by a median of 2%.
It’s a relatively quiet week when it comes to economic data, and investors are likely to focus on Thursday’s releases on September retail sales and initial jobless claims.
Both data points will provide investors with information on the health of the consumer and labor market, respectively.
There will also be some speeches about the Fed this week, with Federal Reserve Governor Adriana Kugler speaking on Tuesday.
Federal Reserve Governor Christopher Waller spoke Monday and said there should be “more caution” about future interest rate cuts while the economy remains on solid footing.
“I see the totality of the data saying that monetary policy should proceed with more caution in the pace of rate cuts than was necessary at the September meeting,” Waller said at Stanford University’s Hoover Institution.
He added: “I will be watching to see whether data, due to be released before our next meeting, on inflation, the labor market and economic activity confirm or undermine my inclination to be more cautious in easing monetary policy.” .
According to the CME FedWatch tool, markets are pricing in a 25 basis point interest rate cut at the Fed’s two remaining FOMC meetings this year, in November and December.
Here’s where the US indices were at the 4:00 pm closing bell on Monday:
Here’s what else is happening:
In commodities, bonds and cryptocurrencies:
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West Texas Intermediate crude oil fell 2.32% to $73.81 a barrel. Brent crude oil, the international benchmark, fell 2.05% to $77.42 a barrel.
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Gold fell 0.32% to $2,667.70 an ounce.
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The 10-year Treasury yield was steady at 4.096%.
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Bitcoin rose 4.98% to $65,987.
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