Stocks kicked off the new week on a high note, with all three major indexes notching solid gains Monday.
Wall Street cheered headlines out of the U.K., where newly installed finance minister Jeremy Hunt walked back major tax cuts unveiled by his predecessor, Kwasi Kwarteng, in late September. The tax cuts sparked excessive volatility across financial markets at the time they were announced – including sending the pound tumbling to a record low against the dollar.
And while today's economic calendar was relatively light, investors parsed earnings from Bank of America (BAC, +6.1%) and Bank of New York Mellon (BK, +5.1%), which both reported higher-than-expected top- and bottom-line results – continuing a trend seen in last week's big bank earnings.
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.
At the close, the Dow was up 1.9% at 30,186, the S&P 500 was 2.7% higher at 3,678, and the Nasdaq had gained 3.4% to 10,676.
What Q3 Earnings Say About the Economy
Today's corporate updates showed more silver linings in what's expected to be a brutal Q3 earnings season. While the earnings calendar only bulks up from here – with big bank Goldman Sachs (GS), pharmaceutical giant Johnson & Johnson (JNJ) and streaming giant Netflix (NFLX) among those reporting tomorrow – there have been signs of strength in a handful of names that have already reported.
"While the pundits are mostly focused on what can go wrong this earnings season, there are several reasons to expect the numbers for this quarter to be decent," says Jeffrey Buchbinder, chief equity strategist at independent broker-dealer LPL Financial. For one, "companies typically generate about three percentage points of upside, even in challenging profit environments, as they bring expectations down low enough to beat them."
Plus, economic activity likely picked up in Q3, which will be beneficial to companies, and "generating earnings growth in a tough economic environment is a little easier when inflation is the source of the weakness," Buchbinder adds. In other words, higher prices means more revenue. So what can Q3 earnings tell us about the economy as a whole? A few, like Domino's Pizza (DPZ) and Delta Air Lines (DAL) are offering hints.
-
Amazon Ends Free Shipping Benefit Sharing with Non-Household MembersStarting October 1, Prime members will no longer be able to share shipping perks with those outside their household.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Stocks Slide to Start September: Stock Market TodaySeasonal trends suggest tough times for the stock market as we round into the end of the third quarter.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
Stocks End Strong Month on a Down Note: Stock Market TodayThere was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
