Stocks gained ground Monday as investors looked ahead to a busy week of earnings and economic data, as well as Tuesday's highly anticipated midterm elections.
While the outcome of the midterms will certainly draw some interest from investors, the results of Thursday's consumer price index will likely be more important to markets. "It is still all about inflation and while this report might not be as hot as the last few, it still should show that rents and the core-service sector part of the economy are still hot," says Edward Moya, senior market strategist at currency data provider OANDA. "Inflation might not fall as quickly as some Fed members are expecting and that could support the idea that rates will stay higher for longer."
As for today's market, the S&P 500 Index rose 1.0% to 3,806 and the Nasdaq Composite advanced 0.9% to 10,564. However, it was the Dow Jones Industrial Average (+1.3% at 32,827) that led the path higher as blue-chip drugstore chain Walgreens Boots Alliance (WBA) gained 4.1% on news it will invest $3.5 billion in primary care provider VillageMD's acquisition of Summit Health, an owner of urgent care centers. WBA is VillageMD's largest shareholder with a roughly 53% stake.
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In other individual stock news, data mining firm Palantir Technologies (PLTR) slid 11.5% after the company's third-quarter profit fell short of the consensus estimate. On the flip side, Facebook parent Meta Platforms (META) jumped 6.5% after the company said it is planning to start laying off thousands of employees later this week.
Behind Berkshire's Q3 Earnings
Also in the winner's circle today was Warren Buffett's Berkshire Hathaway (BRK.B). Shares of BRK.B rose 1.0% after the holding company released its third-quarter earnings report over the weekend. While the bear market took a toll on Berkshire's bottom line over the three-month period, its diversified income stream – which includes companies ranging from battery maker Duracell to healthcare liability insurance provider MedPro Group – was useful in propping up other sections of its financial statement.
Among the highlights of BRK.B's Q3 results were a 20% year-over-year pop in operating income and higher-than-expected earnings per share. Read on to see what other notable developments occurred for Berkshire in Q3, and why BRK.B remains a top defensive stock in what has been a turbulent year for the broader equities market.
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Ask the Editor: 20% Qualified Business Income DeductionAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on the 20% tax deduction for qualified business income or QBI.
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Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
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Dow Climbs 327 Points, Crosses 48,000: Stock Market TodayMarkets are pricing the end of the longest government shutdown in history – and another solid set of quarterly earnings.
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Dow Climbs 559 Points to Hit a New High: Stock Market TodayThe rotation out of tech stocks resumed Tuesday, with buying seen in more defensive corners of the market.
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Risk Is On Again, Dow Jumps 381 Points: Stock Market TodayThe stock market started the week strong on signs the government shutdown could soon be over.
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Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
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Risk Is Off Again, Dow Falls 397 Points: Stock Market TodayMarket participants are weighing still-solid earnings against both expectations and an increasingly opaque economic picture.
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Stocks Rally as Investors Buy the Dip: Stock Market TodayMost sectors are "go" only a day after talk of bubbles, extended valuations and narrow breadth undermined any kind of exuberance.
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Stocks Retreat as Bubble Worries Ramp Up: Stock Market TodayValuation concerns took hold on Wall Street today, sending Palantir and its fellow tech stocks lower.
