Stock Market Today: Stocks Sprint Higher as Bank Earnings Impress
Bank of America and Bank of New York Mellon both reported Q3 earnings beats.


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.

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.
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.
Get Kiplinger Today newsletter — free
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.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Is ESPN’s New Streaming Service Worth It?
ESPN will release its standalone streaming service this fall for $29.99 per month for one year. Is it worth the cost? We'll break it down.
-
Why Shark Tank’s Barbara Corcoran Is Selling Her $12 Million NYC Dream Home
Real estate mogul Barbara Corcoran is trading her luxurious NYC penthouse for a more age-friendly space that will fit her future lifestyle — here’s what to consider when planning for the long term.
-
Stock Market Today: Nasdaq Outperforms as Big Tech Rallies
The Dow Jones Industrial Average closed lower for a second day as Amgen and Merck fell.
-
Stock Market Today: UnitedHealth Drags on Dow After CEO Splits
UNH created headwinds for the price-weighted Dow on news that its embattled CEO, Andrew Witty, is stepping down.
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade Deal
The two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: Investors Weigh Weekend Negotiations
Investors, traders and speculators will look to Switzerland for answers about the most compelling issue confronting global markets.
-
Stock Market Today: Stocks Rise on Trump Trade Deal
The U.S. and the U.K. agreed to a trade agreement that includes lower automobile tariffs.
-
The Best Health Care Stocks to Buy
The best health care stocks offer investors a defensive hedge in an uncertain market. Here's how to find them.
-
Stock Market Today: Stocks Rise Despite Stagflation Risk
The business of business continues apace on continuing hope for reduced trade-related uncertainty.
-
Stock Market Today: Stocks Slip for a Second Straight Day
Solid earnings but mixed guidance amid more tariff uncertainty have markets searching for direction.