The stock market gained ground Monday morning as financial companies reported second quarter earnings that were generally well received by investors. Rates continued to rise ahead of the Fed meeting later this month.
The Nasdaq composite led the major indexes, gaining 1.2%. The S&P 500 rose 0.8%, and the Dow Jones Industrial Average gained 0.6%. The small-cap Russell 2000 was up 1.6%. The Innovator IBD 50 ETF (FFTY) rose 1.2%.
Volume rose on the Nasdaq and fell on the NYSE compared to the same time on Friday.
Asian and European stock markets started the week with gains. The Hong Kong Hang Seng Index soared 2.7%, and the Shanghai composite gained 1.6%. Japanese stocks also gained, with the Nikkei 225 index up 0.5%.
U.S. Stock Market Today Overview
|Last Update: 10:38 AM ET 7/18/2022|
European stocks rose, with the London FTSE 100 up 1.1%, the German DAX up 0.9% and the French CAC 40 index gaining 1.1%.
The 10-year Treasury yield ticked higher to 2.98% Monday morning, rebounding from Friday’s fall to 2.93%. Meanwhile, U.S. oil prices looked to stem their recent slide, with crude oil rising around 4% to nearly $102 per barrel, after briefly falling last week to its lowest level since late February.
Most economists expect the Federal Reserve to raise rates 0.75% when Fed regulators meet on July 27 and 28, with some economists expecting a 1% interest rate rise.
Stock Market Gets Another Boost From Financial Earnings
Energy was the best performing sector Monday, but financial stocks weren’t far behind as several companies reported better-than-expected earnings results.
Bank of America (BAC) matched revenue expectations but earnings were just below analyst estimates of 75 cents per share. The Charlotte, N.C.-based bank recorded earnings of 73 cents per share, down 29% from the $1.03 per share the same quarter last year. Revenue came in at $22.7 billion, up slightly from the $21.47 billion reported in Q2 2021. Shares of BAC were up 1.3% Monday morning.
The Big Picture: Today’s Stock Market
Goldman Sachs (GS) smashed expectations, reporting earnings of $7.73 per share on $11.86 billion of revenue. Wall Street predicted earnings would fall more than 56% to $6.56 per share from $15.02 last year. Revenue was projected to drop to $10.8 billion from the $15.39 billion reported in the second quarter of 2021.
GS stock soared 4.2%, jumping above its 50-moving average for the first time since early June. GS has yet to form a base.
Charles Schwab (SCHW) topped analyst forecasts as its earnings and revenue jumped 38.5% and 13%, respectively, over the year. SCHW reported EPS of 97 cents per share on revenue of $5.09 billion. Analysts were expecting earnings of 91 cents per share and $5.04 billion in revenue. SCHW shares traded flat in the first hour.
Synchrony Financial (SYF) rose 2.2% after the credit card company reported earnings that were better than analysts expected.
Biotech Stocks Gain On Company News
Sesen Bio (SESN) fell 38% after reporting it will voluntarily pause further development in the U.S. of its cancer drug Vicineum.
Seagen (SGEN) dropped 4% after The Wall Street Journal reported Merck‘s (MRK) $40 billion deal for the company is unlikely to be completed ahead of Merck’s earnings report later this month.
Follow Michael Molinski on Twitter @IMmolinski
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The post Stock Market Starts The Week With Gains; Financials Lead The Way With Solid Earning Reports appeared first on Investor’s Business Daily.