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.
Sign up for Kiplinger’s Free E-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
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Stock Market Today: Great Power Affairs Mesmerize MarketsThe U.S. and China are at least talking about talking about tariffs, and investors, traders and speculators are showing a little less fear.
-
Stock Market Today: Stocks Rise on Good VolatilityInvestors, traders and speculators continue to process the "known unknown" of global tariff-and-trade war negotiations.
-
Stock Market Today: Trump Retreats, Markets RejoiceStocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
-
Stock Market Today: Stocks Soar on China Trade Talk HopesTreasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
-
Stock Market Today: Dow Drops 971 Points as Powell Pressure Ramps UpPresident Trump is increasing his attacks against Jerome Powell, insisting the Fed chair cut interest rates.
-
Stock Market Today: No 'Powell Put'? No ProblemInvestors, traders and speculators look beyond both another Trump post and more signs of slowing economic activity.
-
Stock Market Today: Dow Drops 699 Points After Powell SpeechFed Chair Powell warned of a slowing economy and higher inflation but said the central bank isn't ready to cut rates just yet.
