Stocks continued to rise in morning trading Monday as investors braced for a number of corporate earnings reports this week. Wall Street also braced for heightened geopolitical tensions as the United States seeks to advance efforts to contain the conflict between Israel and Hamas.
The Dow Jones Industrial Average (^DJI) rose 1.1%, or nearly 400 points, and the S&P 500 (^GSPC) rose about 1.2%. The Nasdaq Composite Index (^IXIC), which has a high proportion of tech stocks, rose more than 1%.
Earnings season gets into full swing this week, with reports from Goldman Sachs (GS) and Bank of America (BAC) set to be released on Tuesday, following strong results from Wall Street peers. . Tech earnings updates from Tesla (TSLA) and Netflix (NFLX) on Wednesday will be scrutinized for clues to the sector’s resilience as interest rates remain high for an extended period of time. It will be.
Read more: What the Fed’s rate hike pause means for bank accounts, CDs, loans, and credit cards
In conjunction with JPMorgan’s earnings call on Friday, CEO Jamie Dimon said this may be the “most dangerous time the world has seen in decades,” and his warnings are Days later, it still resonates.
Investors remain focused on the Middle East crisis, now focused on whether the United States and its allies can prevent a conflict involving other countries, particularly Iran. Some analysts believe that a serious regional conflict could push oil prices well above $100 a barrel, putting the country at risk of a global recession.
Crude oil futures (CL=F) and Brent crude oil futures (BZ=F) traded in a narrow range around $87 and $91 a barrel on Monday, respectively, after rising nearly 6% on Friday.
But gold and bond prices fell, attracting people seeking safe havens. The 10-year US Treasury yield (^TNX) rose to 4.69%, reversing some of its losses from last week.
Rite Aid files for bankruptcy
Rite Aid (RAD) filed for bankruptcy protection Sunday night to deal with declining sales and looming opioid lawsuits plaguing the retail pharmacy chain.
The bankruptcy is part of the company’s efforts to close unprofitable stores, deal with lawsuits over its role in the opioid pandemic and manage a roughly $4 billion debt burden.
The company said filing for Chapter 11 bankruptcy will help resolve its legal claims in a “fair manner” following the Justice Department’s ruling. filed a complaint In March, he protested against Rite Aid over its role in the opioid crisis. The complaint alleges that Rite Aid filled “hundreds of thousands” of prescriptions that did not meet legal requirements.
Rite Aid said in its filing that bankruptcy proceedings will help it exit leases in undesirable locations, noting that the company is currently saddled with a “burden” of unprofitable stores that it cannot exit. .
Stock prices rise in morning trading
Below are some of the stocks and cryptocurrencies leading Yahoo Finance’s trend ticker page in Monday morning trading.
Tesla (TSLA): The electric car maker’s stock rose more than 1% on Monday morning as investors said they expected the company to beat its profit on Wednesday. Detroit’s Big Three automakers are still dealing with an ongoing strike that locked them down, while Tesla recently reported third-quarter deliveries that fell short of Wall Street expectations, with margins still key for the electric car maker. This is a matter of great concern. Margins declined throughout 2023 as the company used price cuts to stimulate demand.
Bitcoin (BTC-USD): Prices of major cryptocurrencies fell 5% on Monday morning after the Securities and Exchange Commission did not appeal a recent decision on crypto asset manager Grayscale’s application for approval of a Bitcoin exchange-traded fund (ETF). Rose.
CVS: The pharmacy chain’s stock rose 1.7% in morning trading after rival drugstore operator Rite Aid (RAD) filed for bankruptcy. Rite Aid’s stock price fell more than 5%.
Lululemon (LULU): Lululemon stock rose more than 8% as the athleisure wear company prepares to join the S&P 500 index.
Pfizer Inc. (PFE): Pfizer stock fell more than 1% on Monday after the company cut sales forecasts for its coronavirus vaccine. The news pushed down other coronavirus-spreading stocks. Moderna (MRNA) and Pfizer’s COVID-19 vaccine partner BioNTech (BNTX) both fell more than 6%.
Stocks open higher as tech companies prepare for earnings
Wall Street pushed stocks higher Monday morning as investors and tech companies braced for quarterly earnings reports scheduled for later this week, particularly for Tesla (TSLA) and Netflix (NFLX).
The S&P 500 (^GSPC) rose about 0.5%, and the Dow Jones Industrial Average (^DJI) rose 0.6%, or about 200 points. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose 0.3%.
Rite Aid, Lululemon, Pfizer: Trending stocks in pre-market trading
Below are some of the stocks leading Yahoo Finance’s trending ticker page in Monday’s pre-market trading.
Rite Aid Corporation (RAD): Rite Aid’s stock price fell more than 5% after the pharmacy chain filed for bankruptcy.
Lululemon (LULU): Lululemon stock rose more than 5%. The athleisure wear maker will soon join the S&P 500 index.
Pfizer Inc. (PFE): Pfizer stock fell more than 1% on Monday after the company cut sales forecasts for its coronavirus vaccine. The news pushed other coronavirus stocks lower, with Moderna (MRNA) and Pfizer’s coronavirus vaccine partner BioNTech (BNTX) both down more than 4%.
Manchester United plc (MANU): Manchester United’s share price fell 9% on fears that a takeover bid by Qatar’s Sheikh Jassim bin Hamad Al Thani would be impossible.
Dow futures rise as Middle East tensions come into focus
U.S. stock futures were mixed, with tech stocks lagging behind as investors watched for signs of escalating conflict between Israel and Hamas ahead of a busy earnings week.
Dow Jones Industrial Average (^DJI) futures rose 0.40% (135 points) and S&P 500 (^GSPC) futures rose 0.28%. The tech-heavy Nasdaq 100 (^NDX) contract hovered around the flatline.
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