Stock Market Today: Stocks at Record Highs as Earnings Season Ramps Up
Markets continued where they left off last week amid rising optimism over corporate profits.



Stocks hit fresh highs on light volume as a quiet economic calendar and a three-day weekend for the bond market focused market participants' attention on what is forecast to be a strong quarter for corporate profit growth.
Markets continued to power higher Monday, boosted by a strong start to the financial sector's reporting period. Late last week, JPMorgan Chase (JPM), the nation's biggest bank by assets, posted a better-than-expected increase in net interest income (NII) and lifted its forecast for the critical revenue stream. At the same time, Wells Fargo (WFC) reported better-than-expected earnings despite suffering a significant drop in NII.
"Financials will be a focus for the market during the next two weeks, as nearly 50% of the S&P 500 companies that are scheduled to report earnings are part of this sector," writes John Butters, senior earnings analyst at FactSet.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

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.
Citigroup (C), Goldman Sachs (GS), Morgan Stanley (MS) and U.S. Bancorp (USB) are just a sample of the major financial firms featured on this week's earnings calendar. Traders note their results and outlooks will help determine market sentiment throughout the week and beyond.
"The S&P 500 has a shot at its first six-week winning streak since the end of 2023, but with a light economic calendar it will probably be up to earnings to deliver more record highs this week," writes Chris Larkin, managing director, trading and investing at E*trade from Morgan Stanley. "The next two to three weeks will show whether the solid economic data we've seen in recent months is translating to corporate balance sheets."
Upside surprise for corporate profits?
Operating earnings ultimately drive share prices, and so it should be welcome news the S&P 500 is not only reporting solid earnings growth, but is on course to surpass expectations.
"The S&P 500 is reporting earnings growth of 4.1% for the third quarter, which would mark the fifth-straight quarter of year-over-year earnings growth rate reported by the index," Butters notes. "Based on the average improvement in the earnings growth rate during the earnings season, the index will likely report year-over-year growth in earnings above 7% for the third quarter."
The energy sector declined on Monday, hurt by a drop in oil prices, but the other 10 sectors of the S&P 500 advanced, with the benchmark index rising 0.8% to finish at 5,859. The blue-chip Dow Jones Industrial Average added 0.5% to 43,065, while the tech-heavy Nasdaq Composite gained 0.9% to 18,502.
Caterpillar dives on downgrade
Caterpilllar (CAT) gapped down as much as 3.5% in early trades before closing off 1.9% after Morgan Stanley downgraded the Dow Jones stock to Underweight (Sell) from Equal Weight (Hold). The world's largest manufacturer of heavy construction and mining equipment is exposed to a downturn in domestic non-residential construction activity, and now faces a "potential de-stocking downturn for U.S. construction equipment," notes analyst Angel Castillo.
The stock's year-to-date outperformance and a valuation that places an "above mid-cycle multiple" on what are close to peak earnings "suggests a negative risk-reward" scenario for shares, Castillo adds.
Castillo is hardly alone on Wall Street when it comes to becoming more cautious on CAT stock. Shares are up by a third on a price basis so far this year, leading the S&P 500 by about 10 percentage points. Meanwhile, CAT's valuation does look a bit stretched, at least on comparative terms. CAT stock changes hands at more than 18 times analysts' 2025 earnings per share forecast. That represents more than a 5% premium to their own five-year average, according to data from LSEG Stock Reports Plus.
Perhaps more concerning is how fast CAT stock is rising relative to its prospects for earnings growth. On that basis, Caterpillar shares trade at 37% premium to the S&P 500, per LSEG data.
Either way, the Street is collectively sitting on the sidelines with this name. Of the 26 analysts covering CAT surveyed by S&P Global Market Intelligence, seven call it a Strong Buy, three say Buy, 11 have it at Hold, one has it at Sell and one calls it a Strong Sell. That works out to a consensus recommendation of Hold.
Related content
- Analysts' Top S&P 500 Stocks to Buy Now
- Best Dividend Stocks to Buy for Dependable Dividend Growth
- Rising Prices: Which Goods and Services Are Driving Inflation?
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
Quiz: Test Your Knowledge of the OBBB, Wealth Transfer and Early Retirement
Quiz The financial professionals who contribute to Kiplinger's Adviser Intel recently wrote about the OBBB's impact on retirement, how to ensure your wealth passes to your family and early retirement questions.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
5 Multibagger Stocks With Amazing Returns in 2025
multibagger stocks As the term suggests, multibagger stocks multiply your money – gains of 1,200%, for example. Here's where to look for that kind of performance this year.
-
Investing Freebies: Perks You Get for Owning These Stocks
While the biggest investing returns come over the long term, these companies offer instant gratification for investors with several freebies and perks.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop Investments
Truck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
-
How Digital Platforms Are Changing the Way You Invest in Gold
Investing in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market Today
The Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.