Stocks failed to make any major moves Monday as investors looked ahead to this week's inflation data and the start of second-quarter earnings season.
Technology and communication services stocks lagged, hurt by weakness in several mega-cap names like Apple (AAPL, -1.1%), Microsoft (MSFT, -1.6%) and Alphabet (GOOGL, -2.5%), while industrial stocks outperformed.
At the close, the blue chip Dow Jones Industrial Average was up 0.6% at 33,944 on strength in healthcare stock Amgen (AMGN, +2.8%), the S&P 500 was 0.2% higher at 4,409, and the tech-heavy Nasdaq Composite had gained 0.2% to 13,685.
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.
Investors are waiting for Wednesday morning's release of the June Consumer Price Index (CPI) report to give potential clues to the Federal Reserve's future monetary policy plans. Both San Francisco Fed President Mary Daly and Cleveland Fed President Loretta Mester said today that more rate hikes are needed to bring inflation down to the central bank's 2% target.
Following last week's mixed June jobs report, futures traders are now pricing in a 92.4% chance of a quarter-point rate hike at the next Fed meeting later this month, according to CME Group.
Meanwhile, the second-quarter earnings calendar gets rolling on Friday with several big banks set to report. This earnings season is likely to be volatile, says Megan Horneman, chief investment officer at Verdence Capital. "In order for the recent rally to be sustainable we need to see a better outlook for earnings and improvement in the economy," Horneman notes, "otherwise, valuations, especially in select sectors, are too high."
Analysts blast CAVA with Buy ratings
In single-stock news, Cava Group (CAVA) jumped 11.1% after several analysts initiated coverage on the Mediterranean restaurant stock following its June initial public offering (IPO). Jefferies, Stifel and Baird were among those giving CAVA a Buy or equivalent rating.
William Blair analyst Sharon Zackfia also started coverage on Cava Group with an Outperform (Buy) rating. "CAVA has hit upon a winning formula with its customizable menu of bowls and pitas featuring bold Mediterranean flavors that can fit in any dietary preference," Zackfia wrote in a note to clients.
Best bond funds to buy
Coming off a rough 2022, the bond market has had a solid run so far this year. Nearly all major fixed-income sectors finished the first half in positive territory due in part to falling long-term yields and uncertainty sparked by the regional banking crisis that occurred in the spring, says Sam Millette, fixed income strategist for Commonwealth Financial Network. The strategist adds that the second-half outlook for bonds remains "positive," and he sees "compelling options across several sectors," including in investment-grade bonds.
"The economic data continues to paint a relatively positive picture, which should help support company fundamentals for investment-grade corporations," Millette says. However, because corporate bonds are backed by the financial health of their corporate issuers, the strategist adds that investors should be aware of "fundamentals like profitability, debt and growth potential" that can impact long-term performance when considering allocations.
While investing in individual bonds is impractical for retail investors, bond funds and bond ETFs allow them to gain exposure to fixed-income assets. Here, we've compiled a list of the best bond funds to buy now that cover a wide variety of categories and create diversification for income investors.
Related Content
-
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.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to KnowGOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
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.
-
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.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
Nasdaq Ends the Week at a New High: Stock Market TodayThe S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
