Stocks were higher Monday as Wall Street braced for quarterly reports from some of the biggest companies in the world.
This includes reports financial institutions, such as Bank of America, Morgan Stanley and Goldman Sachs.
Results are also due from United Airlines, Las Vegas Sands and technology giants Tesla and Netflix.
Overall, the Dow Jones Industrial Average traded added 76.32 points, or 0.22 per cent to end at 34,585.35 — its highest closing level in 2023. The S&P 500 climbed 0.39 per cent to finish the session at 4,522.79, while the Nasdaq Composite advanced 0.93 per cent to 14,244.95.
Shares of tech-giant Apple added 1.7 per cent, while Tesla climbed 3.2 per cent. Shares of JPMorgan Chase ticked up 2.4 per cent.
Wall Street expects a gloomy season with lower profits. Analysts forecast a more than 7 per cent decline in S&P 500 earnings from a year ago, according to FactSet.
This week also ushers in the Federal Reserve’s “blackout period” ahead of its July policy meeting. Traders anticipate a roughly 97 per cent chance the central bank increases interest rates later this month, after pausing hikes in June, according to CME Group’s FedWatch tool.
Stocks are coming off a winning week that saw the Dow Jones Industrial Average gain 2.3 per cent to notch its best weekly gain since March. The S&P 500 and Nasdaq Composite added 2.4 per cent and 3.3 per cent respectively.
The moves came on the heels of solid big bank earnings and softer inflation reports that lifted investor sentiment. That heightened some hopes the central bank may be able to tamp down inflation without tipping the economy into a recession.
In commodity news, Russia's decision to terminate a significant grain-export deal with Ukraine, a year into the agreement, has raised concerns about global food supplies and intensified tensions in the region.
Western leaders criticised the move as "unconscionable" and "cynical."
Meanwhile, Fitch Ratings' downgrade of Mexico's state-owned oil company, coupled with a negative debt outlook, resulted in Mexican oil bonds experiencing the largest decline in Latin America on Monday.
Overall, US sectors were mixed overnight. Tech was the best performer, whilst Utilities was the worst.
Futures
The SPI futures are pointing to a 0.3 per cent fall.
Currency
One Australian dollar at 7:20 AM was buying 68.20 US cents.
Commodities
Gold lost 0.41 per cent. Silver fell 0.70 per cent. Copper dropped 2.26 per cent. Oil fell 1.68 per cent.
Figures around the globe
European markets closed lower. London’s FTSE fell 0.38 per cent, Frankfurt lost 0.23 per cent, and Paris closed 1.12 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei and Hong Kong’s Hang Seng were closed while China’s Shanghai Composite closed 0.87 per cent lower.
The Australian sharemarket closed 0.06 per cent lower at 7299.
Ex-dividends
Metcash (ASX:MTS) is paying 11 cents fully franked
Dividends payable
K2 Asset Management Holdings (ASX:KAM)
US Masters Residential Property Fund (ASX:URF)
Red Hill Minerals (ASX:RHI)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2023 – Finance News Network
Source: Finance News Network
