US stocks climb as investors brace for earnings from mega-cap tech companies
- US stocks traded higher as investors eagerly await a slew of corporate earnings from big tech this week.
- Facebook will report its third-quarter results Monday, followed by Microsoft, Twitter, and Alphabet Tuesday.
Oiland goldprices climbed.
US stocks traded higher on the first day of the week as investors keenly await the slew of corporate earnings due up from big tech.
First on the line is Facebook, which will report its third-quarter results Monday.
On the docket for Tuesday are Microsoft, Twitter, and Alphabet, Google's parent company. Apple and Amazon will report on Thursday.
Here's where US indexes stood at the 9:30 a.m. ET on Monday:
- S&P 500: 4,555.45, up 0.23%
- Dow Jones Industrial Average: 35,733.77, up 0.16% (56.75 points)
- Nasdaq Composite: 15,142.58, up 0.38%
Also lined up are quarterly reports from Visa, General Electric, and other big names, with a total of 165 companies in the S&P 500 due to report this week, according to Deutsche Bank.
While investors are optimistic big tech firms will deliver strong results, supply chain issues remain the main risk to earnings, Michael J. Wilson, equity strategist at Morgan Stanley, said in a note Monday.
Following standout results from banks, earnings posted for the third quarter so far have been more mixed compared to previous quarters, he said.
"Last week saw a lot of companies discussing supply issues as a continued and more pervasive risk than initially thought," he added. "The result is plunging earnings revisions breadth for many sectors and the S&P 500 overall."
Overall, US equities have shrugged off various risks from higher oil prices to higher production costs as the Federal Reserve continues to allay concerns that inflation is temporary.
Investors are also turning their attention to the Federal Open Market Committee meeting next week, in which plans to taper asset purchases are widely expected to be announced.
The yield on the benchmark 10-year Treasury note rose to 1.663%% from Friday's 1.654%. Bond yields move inversely to prices.
Oil prices are likely seeing some support from comments from Saudi Arabia's minister of energy, who said OPEC+ will continue taking a cautious approach in raising output, according to ING analysts.
West Texas Intermediate crude oil rose 1.25%, to $84.81 per barrel. Brent crude, oil's international benchmark, climbed 0.88%, to $86.28 per barrel.
Gold jumped as much as 0.45%, to $1,802.54 per ounce.
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