Stock Market Today: Dow Soars 511 Points After McDonald's Earnings
All three indexes notched impressive gains Monday ahead of a jam-packed week on Wall Street.
Stocks opened higher Monday and stayed that way through the close as investors looked ahead to a busy week on Wall Street – one that includes the next Fed meeting and Apple (AAPL, +1.2%) earnings.
Today, a solid reaction to earnings for one blue chip stock helped the Dow Jones Industrial Average outpace its peers even as the two other main indexes scored notable wins of their own.
Looking at the numbers, the Dow rallied 1.6% to 32,928 thanks to impressive gains for several stocks. While athletic apparel and footwear retailer Nike (NKE) was the best Dow Jones stock Monday with its 3.9% pop, fast food giant McDonald's (MCD) was near the top of the leaderboard with its 1.7% advance.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Boosting MCD was the company's third-quarter earnings report, which came in higher than expected thanks to menu price increases. Same-store-sales growth was also higher than analysts were anticipating.
Argus Research analyst John Staszak reiterated a Buy rating on MCD stock after earnings. The analyst expects the company to navigate a soft economy better than its peers due to its buying power and financial strength. "In the current economic environment, we also think that more consumers will choose McDonald’s value menus over the more expensive fare offered by full-service restaurants," Staszak says.
Meanwhile, after closing last week in correction territory, both the S&P 500 (+1.2% at 4,166) and the Nasdaq Composite (+1.2% at 12,789) carved out impressive gains today.
Fed meeting, jobs data on tap
This week will give investors plenty to consider. In addition to the Federal Reserve unveiling its latest monetary policy decision mid-afternoon Wednesday, the October jobs report will be released Friday morning. The central bank is widely expected to keep interest rates unchanged and reiterate its data-dependent approach, which makes the monthly jobs report a key event.
Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company, "will be monitoring the labor force participation rate to see if the recent rise in new entrants joining the workforce is continuing. A rise in labor force participation could help ease the current elevated wage pressures."
Apple earnings land after Thursday's close
Additionally, Apple headlines a jam-packed earnings calendar, with the tech giant scheduled to report its quarterly results after Thursday's close. "Investors need to see a clearer growth pattern emerge before excitement can be unleashed where Apple's concerned," says Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. While iPhone sales are likely to remain muted, the services segment is one area that is seeing continued growth, she notes.
"This helps underpin profits because margins in software are more attractive than in manufacturing physical goods," Lund-Yates adds. "The crucial part to all of this will be any hint on the outlook as we head into Christmas – it's this trajectory that has the ability to move markets."
Spirit Realty soars on buyout news
Spirit Realty (SRC) is another company slated to report earnings Thursday. The real estate stock soared 7.9% today on news it will be acquired by fellow real estate investment trust (REIT) Realty Income (O, -5.7%) in an all-stock deal valued at $9.3 billion. The deal is expected to close in the first quarter of 2024.
In other M&A news, healthcare REITs Healthpeak Properties (PEAK, -2.7%) and Physicians Realty (DOC, -0.5%) have agreed to combine in an all-stock deal valued at $21 billion. The merger is expected to be completed in the first half of next year, and the combined company will operate as Healthpeak Properties and trade under the ticker symbol "DOC" on the New York Stock Exchange.
Related content
- When Is the Next CPI Report?
- UAW Strike: Tentative Deals Reached With Detroit's Big Three
- I-Bonds: Pros and Cons of Investing
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
The $3,000 Retirement Mistake Millions Make Each Year (And How to Avoid It)A little oversight or automation can keep money in your pocket.
-
January Fed Meeting: Live Updates and CommentaryThe January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market Today
The S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
Nasdaq Leads Ahead of Big Tech Earnings: Stock Market TodayPresident Donald Trump is making markets move based on personal and political as well as financial and economic priorities.
-
11 Stock Picks Beyond the Magnificent 7With my Mag-7-Plus strategy, you can own the mega caps individually or in ETFs and add in some smaller tech stocks to benefit from AI and other innovations.
-
Nasdaq Adds 211 Points as Greenland Tensions Ease: Stock Market TodayWall Street continues to cheer easing geopolitical tensions and President Trump's assurances that there will be no new tariffs on Europe.
-
Dow Soars 588 Points as Trump Retreats: Stock Market TodayAnother up and down day ends on high notes for investors, traders, speculators and Greenland.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
Dow Dives 870 Points on Overseas Affairs: Stock Market TodayFiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
-
Small Caps Can Only Lead Stocks So High: Stock Market TodayThe main U.S. equity indexes were down for the week, but small-cap stocks look as healthy as they ever have.
