S&P 500 Little Changed as Earnings and Inflation Loom
The S&P 500 was little changed on Monday as investors prepared for bank earnings and inflation reports. Oil prices rose amid developments in Russia’s war with…
The S&P 500 today was little changed as U.S. stocks opened a week packed with corporate earnings and inflation data. Investors weighed the coming reports against rising oil prices and geopolitical tensions.
The broad-market index traded down 0.1% in CNBC’s account, while the Dow Jones Industrial Average rose 269 points, or 0.5%, and the Nasdaq Composite fell 0.3%. A separate Yahoo Finance update put the S&P 500 up 0.1% on Monday morning, with the Dow up 0.3% and the Nasdaq down 0.1%.
Technology shares faced pressure from Micron Technology, which fell 4% as investors assessed competition from China’s CXMT and its reported progress on a new chip structure. Salesforce helped support the Dow, gaining 2% after receiving a double upgrade at Bank of America.
S&P 500 today: earnings and inflation in focus
Investors are looking to third-quarter results for evidence that companies can keep growing despite higher fuel and borrowing costs. CNBC, citing FactSet’s John Butters, reported that analysts expect S&P 500 earnings to grow 29.6% in the quarter. That would mark the fourth consecutive quarter of growth above 25%, attributed in the report to demand from the AI data center buildout.
But the outlook companies give may matter as much as the reported figures. Investors want to know whether businesses can manage costs and maintain margins as energy and borrowing expenses rise.
“Can this company withstand what's happening? Pass along, continue to grow margins, and the future is going to be better than the most recent past,” said Brian Leonard, portfolio manager of Keeley Gabelli Small Cap Dividend Fund, in comments reported by CNBC.
Major banks are due to report this week. Yahoo Finance said JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo were expected to release results Tuesday. CNBC also listed Bank of America and Morgan Stanley among the banks expected to report during the week.
Inflation figures are another test for markets. CNBC said the September consumer price index was due Wednesday and the producer price index Thursday. Yahoo Finance also flagged inflation and retail sales data for Wednesday and Thursday.
Oil climbs as geopolitical risks persist
Oil rose as investors followed developments involving Russia and Ukraine. CNBC reported that West Texas Intermediate futures advanced 2% to around $93 per barrel and Brent crude gained 2% to $106 per barrel. Yahoo Finance also reported Brent at $106 and WTI at $93, following Russian strikes on Ukrainian power plants after President Donald Trump said the countries had agreed to avoid targeting each other’s energy infrastructure.
Trump also told reporters he was considering joining Saudi Arabia in its fight against Tehran-backed Houthis in Yemen, CNBC reported. Yahoo Finance said Houthi strikes on Saudi Arabia’s main airport killed 12 over the weekend and warned that U.S. involvement could risk escalating the conflict.
The oil move matters to investors because higher fuel costs can add pressure on companies and customers just as earnings season begins. Shipping costs were also lifting prices: CNBC reported that the Global Shipping ETF reached another all-time high at the opening bell, while Torm PLC, Hafina and Teekay Tankers opened at fresh 52-week highs.
Wall Street entered the week after gains across major indexes. CNBC reported that the Dow and S&P 500 each recorded their second positive week in three, while the Nasdaq marked a fourth straight week of gains. The bull market also turned four on Monday, according to Yahoo Finance, which said the S&P 500 had reached record highs during the previous week.
Bank earnings begin Tuesday, followed by the scheduled inflation releases later in the week.
Source: cnbc.com
