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Some of Wall Street’s biggest banks started the week with corporate results.
Ed Jones/AFP via Getty Images
After a fantastic Friday, stocks rose again on Monday as
Goldman Sachs
Boost investor spirit.
by noon,
Dow Jones Industrial Average
rose 190 points, or 0.6%, while
S&P 500
rose 0.7%,
Nasdaq Composite
It has risen 1.1%.
Even Bitcoin USD and other coins are rising as investor interest in risky assets returns. Bitcoin rose 6 percent to above $22,000, hitting its highest level since a sharp sell-off in mid-June saw the largest cryptocurrency fall from $30,000 to $18,000.
Stocks rallied on Friday, with all three major indexes up more than 1 percent, as investors cut expectations for a full-point rate hike by the Federal Reserve. This gives investors complete clarity to focus on corporate profits. With 244 S&P 500 companies reporting earnings in the next two weeks, they’ll have to focus.
The company has exceeded expectations. Earnings beat estimates by 3.7% as nearly 10% of companies in the S&P 500’s market cap reported earnings. Nonetheless, a problem remains. While the company has outperformed expectations in the past quarter, the road ahead could be tougher. With rising interest rates and calls for a recession intensifying, earnings estimates seem to have to come down. S&P 500 profit expectations for 2022 have risen over the past year but have fallen 0.3% over the past month, according to FactSet.
“The second-quarter earnings season should kick off a much-anticipated round of negative earnings revisions,” wrote 22V Research founder Dennis DeBusschere.
However, Monday morning’s gains looked good enough to keep the rally going.For example, Goldman Sachs (ticker: GS) rose 3.7% after reporting better-than-expected earnings, while
Bank of America
(BAC) rose 1% even after missing expectations.
Whether the gains will be enough to sustain the rally remains to be seen.
The current rally, while still in progress, eased somewhat after the opening bell on Monday. Those indexes were all below their highs as short- and long-term Treasury yields rose. Markets are increasingly convinced that interest rates have peaked, easing the potential damage to the economy, but a higher rate could pause the stock market rally.
Here are some stock moves on Monday:
Digital asset-sensitive stocks rise, shares on cryptocurrency exchanges
Coinbase Global
(coin) up 12%.
Micro strategy
(MSTR), a software group with a large amount of bitcoin on paper, rose 9.7%, while digital payments group
blockage
(SQ) and
Paypal
(PYPL) rose 3% and 1.7%, respectively.bitcoin miner
Marathon Digital
(Mara) and
Riot Blockchain
(RIOT) were 20% and 14% higher, respectively.
WD-40
(WDFC) stock rose 5.5% after DA Davidson & Co. was upgraded to Buy from Neutral.
JPMorgan Chase & Co.
(JPM) shares rose 0.3% after upgrading from sell to hold in Berenberg.
Citi Global Wealth’s Steven Wieting discusses building a resilient portfolio, while BlackRock’s Gargi Chaudhuri explains how to deal with volatility by allocating to fixed income.
Write to Jack Denton at [email protected] and to Jacob Sonenshine at [email protected]
