Stocks kicked off the week on a strong note, with all three main indexes notching major gains Monday. Today's relief rally came as investors brushed off rising geopolitical tensions and instead looked ahead to a busy week on Wall Street – one which includes a number of high-profile earnings reports.
Market participants put escalating tensions between Israel and Hamas on the backburner Monday, choosing to focus on several key domestic events on the immediate horizon. For one, there's a jam-packed earnings calendar that includes results from streaming giant Netflix (NFLX, +1.5%) and electric vehicle maker Tesla (TSLA, +1.1%).
"Consumer spending and the strength of the global consumer will be primary drivers of this earnings season, and investors are closely watching for signs of an inflection point," says Mark Hackett, chief investment officer of Nationwide.
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.
Earlier today, financial firm Charles Schwab (SCHW, +4.7%) reported higher-than-expected third-quarter earnings of 77 cents, but said bank deposits were down 28% year-over-year, while revenue was 16% lower.
Additionally, a number of Federal Reserve speeches are sprinkled throughout the week. Most notable is Thursday afternoon's appearance from Fed Chair Jerome Powell. UBS Global Research chief U.S. economist Jonathan Pingle doesn't expect Powell "to assuage market participants' concerns over rising yields." Rather, the Fed chair will likely "walk a fine line between signaling a willingness to wait and not raise rates at the November meeting," while also indicating the central bank's willingness to hike rates if jobs and inflation data doesn't cool, Pingle says.
And amid a thin economic lineup, tomorrow morning's September retail sales report is noteworthy. "The data should yield insights into whether consumers are adjusting their spending habits as a reflection of their expectations for the economy going forward," says Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company.
Lululemon soars on S&P 500 news
As for today's news, Lululemon Athletica (LULU) stock soared 10.3% after S&P Dow Jones Indices said late Friday that the athletic apparel retailer will replace video game maker Activision Blizzard on the S&P 500, effective ahead of this Wednesday's open. Microsoft (MSFT, +1.5%) closed its acquisition of Activision Blizzard last Friday, October 13. Today's positive price action is just more of the same for LULU stock, which is up 30% for the year-to-date.
S&P Dow Jones Indices also said electrical equipment maker Hubbell (HUBB, +3.1%) will take the place of Merck (MRK, +0.1%) spinoff Organon (OGN, -2.7%) on the S&P 500 starting Wednesday morning.
As for the major indexes, the Nasdaq Composite jumped 1.2% to 13,567, the S&P 500 gained 1.1% to 4,373, and the Dow Jones Industrial Average added 0.9% to 33,984.
Related content
-
Customer Services are Strained at the SSA, You Should Plan Around These Federal HolidaysIf you have a question or need information from a federal agency, check the federal holiday schedule to make sure you get your business done before they close.
-
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: No 'Powell Put'? No Problem
Investors, 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.
-
Stock Market Today: Stocks Struggle Amid Tariff UncertaintyBoeing dropped after China suspended new aircraft orders, while Bank of America and Citi climbed on earnings beats.
-
Stock Market Today: Stocks Gain on Tech, Auto Tariff TalkThe Trump administration said late Friday that it will temporarily halt tariffs on some Chinese tech imports.
-
Stock Market Today: Stocks Surge to Close a Volatile WeekIt was another day with a week's worth of both news and price action, but it ended on a strongly positive note.
-
Stock Market Today: Uncertainty Proliferates: Dow Loses 1,014 PointsWeaker-than-expected consumer inflation data wasn't enough to stabilize sentiment during another volatile day for financial markets.
-
Stock Market Today: Tariff Pause Triggers 3,000-Point Dow RallyThe bond market is sending concerning signals as the Trump administration executes its rapid reordering of global trade relationships.
-
Stock Market Today: Tariff Talks Drive Another Up-and-Down DayTrade war negotiations are happening, but the "fear gauge" is gyrating, and investors, traders and speculators are still searching for signs of a bottom.
