U.S. stocks rose on Monday as fears of war in the Middle East cooled, ahead of a crucial week packed with Big Tech earnings, an inflation update and a crucial monthly jobs report.
The tech-heavy Nasdaq Composite (^IXIC) rose about 0.6%, while the S&P 500 (^GSPC) rose 0.5%. The Dow Jones Industrial Average (^DJI) also rose 250 points, or about 0.6%.
The market was buoyed by relief that Israel limited its retaliatory attacks on Iran to military targets, and not to oil or nuclear facilities, as feared. Oil futures fell almost 6%, sending Brent (BZ=F) down to almost $71 a barrel and West Texas Intermediate (CL=F) near $67.
The focus is on technology stocks, with five of the ‘Magnificent Seven’ megacaps reporting earnings this week after the Nasdaq Composite broke Friday’s losing trend to close near a record.
Investors are looking to the results of Alphabet (GOOGL, GOOG), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT) and Meta (META) to help the S&P 500 soar to new heights as well. But questions remain about whether Big Tech’s investments in AI are paying off. Some on Wall Street expect the slowest earnings growth for tech megacaps in six quarters.
The reports cap a very busy week of results, with 169 members of the S&P 500 expected to issue updates. Shares of Philips (PHG) fell 16% after the medical device maker cut its full-year sales outlook, citing a sharp decline in Chinese demand. Ford (F) is scheduled to play after the bell on Monday.
At the same time, investors are bracing for a flurry of economic data that could test bets on a “soft landing.” In the foreground are the latest data on the Federal Reserve’s preferred inflation gauge and the October jobs report – both seen as crucial to policymakers’ decision on whether to cut rates at their November meeting.
Read more: What the Fed’s interest rate cut means for bank accounts, CDs, loans and credit cards
Elsewhere, shares in Japan rallied after the country’s ruling party failed to hold on to its majority in Sunday’s election – underscoring the political risks to markets with the US presidential election just days away.
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Boeing is offering stock sales of nearly $19 billion to strengthen its balance sheet and avoid a downgrade
Shares of Boeing ( BA ) traded slightly lower in the premarket after the plane maker launched a nearly $19 billion share sale in an effort to shore up its liquidity and avoid a credit downgrade.
The company plans to sell approximately 90 million shares of common stock and approximately $5 billion in depository receipts. Wall Street analysts had widely expected a large offering after a difficult year for the aircraft maker.
S&P Global recently placed Boeing on CreditWatch Negative, raising the likelihood of a rating downgrade if the union strike at the company continues through the end of the year.
Last week, a majority of employees rejected Boeing’s latest labor contract proposal. Earlier this month, the aircraft manufacturer said it would cut about 17,000 jobs, or 10% of its workforce.
Boeing had $56.9 billion in outstanding unsecured debt as of September 30, according to a company filing.
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