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Market Snapshot: Dow, S&P 500 carve out fresh intraday records, ahead of earnings from Facebook, others

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U.S. stock benchmarks on Monday gained some altitude higher in record territory, shaking off a listless Monday morning, ahead of a slate of earnings for the week that will further underscore the overall health of American corporations in the aftermath of the COVID-19 pandemic, which has been marked by pricing pressures and fears of a global growth slowdown.

What’s happening
  • The Dow Jones Industrial Average
    DJIA,
    +0.20%

    traded 84 points, or 0.2%, higher at 35,765, establishing a new all-time intraday record at 35,767.57.
  • The S&P 500
    SPX,
    +0.45%

    climbed 0.5% to around 4,566, near its intraday record at 4,566.43.
  • The Nasdaq Composite Index
    COMP,
    +0.69%

    traded 109 points, or 0.7%, higher at 15,198, not far from its closing high at 15,374.33 put in on Sept. 7.

On Friday, the Dow rose 0.2% to close at its first record since Aug. 16, while the S&P 500 declined 0.1% and the Nasdaq Composite dropped 0.8%. The S&P 500 decline marked the end of a seven-session winning run.

What’s driving markets

Energy, materials and consumer-discretionary shares were helping buoy the market early Monday, in what is slated to be a busy week of quarterly results from American corporations.

This week’s earnings calendar features more than 150 S&P 500 companies, or nearly a third of the broad-market index, including Facebook
FB,
+0.16%
,
which reports after the closing bell Monday.

So far, earnings has been strong, helping to keep the market’s bullish uptrend intact, even as concerns about inflation persist.

“The [third=quarter] earnings season is off to a strong start and has propelled S&P 500 earnings per share (EPS) to record levels. Investors are paying particular attention this quarter, as concerns over supply bottlenecks and inflation threaten company bottom-lines,” wrote Seema Shah, chief strategist at Principal Global Investors, in a Monday note.

“Yet, despite recent volatility, strong corporate profitability has helped the S&P 500 gain more than 20% (with dividends) this year. Earnings fully recovered from pandemic lows during the second quarter, rising alongside the broader economy,” Shah wrote.

Markets also will have an eye on Washington, D.C., as pivotal Democratic Sen. Joe Manchin appeared to back taxes on billionaires and certain corporations, according to the Associated Press, with the total price tag on a social services and climate change package estimated at $1.75 trillion.

Meanwhile, in public health news, Moderna Inc. MRNA said that children between the ages of 6 and 11 years old get a strong response against COVID-19, based on data from a Phase 2/3 clinical study evaluating children’s vaccine response.

Dr. Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases and President Joe Biden’s chief medical adviser, said he expects children aged 5 to 11 to become eligible for vaccines by early-to-mid November. A review panel for the U.S. Food and Drug Administration found last week that the benefits of the shots outweigh risks, and an advisory committee will convene Tuesday to discuss the matter. If they vote in favor and the CDC grants final approval by next week, children could start getting their shots shortly after, Fauci told ABC News on Sunday.

Which companies are in focus?
  • Shares of Tesla Inc.
    TSLA,
    +7.91%

    shot up toward another record Monday, after Hertz Global Holdings Inc.
    HTZ,

    announced plans to order 100,000 Tesla electric vehicles, as part of its goal to offer the largest EV rental fleet in North America. Shares were 6.8% higher.
  • Shares of Facebook Inc.
    FB,
    +0.16%

    were down 0.3% on Friday ahead of its results later Monday.
  • PayPal Holdings PYPL and Pinterest PINS shares were in focus after the payments firm said it wouldn’t bid for the art-sharing social network. PayPal shares were 3.7% higher, Pinterest shares fell 12%.
  • Kimberly-Clark Corp. KMB shares fell 3.3% after the consumer goods company reported third-quarter earnings that missed expectations and lowered its earnings guidance. 
  • Citigroup C said Monday it will incur “significant” charges for winding down its Citibank Korea Inc. unit, and that it will likely provide more details in the next four business days. Citigroup shares fell 0.7%.
  • Otis Worldwide Corp. OTIS reported Monday third-quarter profit and sales that rose above expectations, with sales growth exceeding the rise in expenses, and raised its full-year outlook. Otis shares fell 2.6%.
  • Shares of Restaurant Brands International Inc. QSR were in focus after the Burger King, Popeyes and Tim Hortons restaurant chains parent beat profit expectations but came up a bit shy on revenue, as COVID-19 contributed to supply chain and labor challenges. Restaurant Brands shares fell 4%.
  • Allbirds Inc.
    BIRD,
    ,
    the sustainable lifestyle brand known for its shoes and sneakers, set terms for its initial public offering on Monday, with plans to offer 19.2 million shares priced at $12 to $14 each. 
  • Shares of Remark Holdings Inc. MARK skyrocketed on massive volume Monday, putting them on track to open strong after a recent run-up. Remark shares rose almost 85%.
How are other assets faring?
  • The yield on the 10-year Treasury note TMUBMUSD10Y was marginally lower at around 1.63%. Yields and debt prices move in opposite directions.
  • The ICE U.S. Dollar Index DXY, a measure of the currency against a basket of six major rivals, rose by about 0.2%.
  • Oil futures traded higher, with the U.S. benchmark CL00 rising 1% at $84.55 a barrel. Gold futures GC00 rose 0.7% to reach $1,809.60 an ounce.
  • The Stoxx Europe 600 SXXP was trading 0.1% higher, while London’s FTSE 100 UKX added 0.3%.
  • The Shanghai Composite SHCOMP ended 0.8% higher, while the Hang Seng Index HSI inched up 0.02% in Hong Kong, and Japan’s Nikkei 225 NIK shed 0.7%.

: Tesla sets sights on $1 trillion valuation after Hertz’s plan to buy 100,000 Tesla EVs

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