Stocks churned higher during mid-morning trading on Monday, building on earlier gains as investors prepared for a host of corporate earnings this week. Wall Street also braced for heightened geopolitical tensions as the US attempted to advance efforts to contain the Israel-Hamas conflict.
The Dow Jones Industrial Average (^DJI) increased 1.1% or nearly 400 points while the S&P 500 (^GSPC) gained about 1.2%. The tech-heavy Nasdaq Composite (^IXIC) increased more than 1%.
Earnings season picks up steam this week, with reports from Goldman Sachs (GS) and Bank of America (BAC) due Tuesday after upbeat results from their Wall Street peers. Updates from Tesla (TSLA) and Netflix (NFLX) kick off tech earnings on Wednesday, likely to be scrutinized for clues to the sector’s resilience amid higher-for-longer interest rates.
Read more: What a Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Alongside JPMorgan’s results on Friday, CEO Jamie Dimon said this may be “the most dangerous time the world has seen in decades,” a warning that is still resonating days later.
Investors remain focused on the Middle East crisis — and right now on whether the US and its allies can stop the clash from drawing in other countries, especially Iran. A full-blown regional conflict could send oil prices surging well above $100 a barrel, risking a global recession, some analysts believe.
Crude oil futures (CL=F) and Brent crude futures (BZ=F) traded in a tight range on Monday around $87 and $91 a barrel, respectively, after climbing almost 6% on Friday.
But prices for gold and bonds fell, attracting those seeking safe havens. The 10-year Treasury yield (^TNX) rose to 4.69%, recouping some of its losses from last week.
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Rite Aid files for bankruptcy
Rite Aid (RAD) filed for bankruptcy protection on Sunday night as the company grapples with declining sales and a looming opioid lawsuit that has hung over the retail pharmacy chain.
The bankruptcy is part of an effort to shutter unprofitable stores, address litigation over its role in the opioid pandemic and manage its debt load of roughly $4 billion.
The company said its Chapter 11 bankruptcy filing will help resolve the legal claims in an “equitable manner” after the Department of Justice filed a complaint against Rite Aid in March for its role in the opioid crisis. The complaint alleged Rite Aid filled “hundreds of thousands” of prescriptions that didn’t meet legal requirements.
In the filing, Rite Aid explained that the bankruptcy process will help it walk away from leases at undesirable locations, noting that the company is currently “burdened” by unprofitable stores that it can’t exit.
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Stocks trending in morning trading
Here are some of the stocks and cryptocurrencies leading Yahoo Finance’s trending tickers page in morning trading on Monday:
Tesla (TSLA): Shares of the electric car maker rose more than 1% Monday morning as investors positioned themselves ahead of the company’s earnings on Wednesday. While Detroit’s Big Three automakers are still dealing with locked ongoing strikes, Tesla recently missed Wall Street’s estimates for third quarter deliveries, and margins remain a key concern for the electric vehicle maker. Margins have declined throughout 2023 as the company has used price cuts to ignite demand.
Bitcoin (BTC-USD): The price of the dominant cryptocurrency rose 5% on Monday morning after the Securities and Exchange Commission did not appeal a recent decision on crypto asset manager Grayscale’s application for the approval of a bitcoin exchange-traded fund (ETF).
CVS (CVS): Shares of the pharmacy chain gained 1.7% during morning trading after rival drugstore operator Rite Aid (RAD) filed for bankruptcy. Rite Aid’s shares sank more than 5%.
Lululemon (LULU): Shares of Lululemon increased by more 8% ad the athleisure wear company prepares to join the S&P 500 index.
Pfizer Inc. (PFE): Pfizer’s shares fell by over 1% on Monday after the drugmaker cut the sales forecast for its COVID vaccine. The news dragged down other COVID-heavy stocks. Moderna (MRNA) and BioNTech (BNTX), Pfizer’s COVID vaccine partner, both fell by more than 6%.
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Stocks open higher as tech companies prepare for earnings
Wall Street pushed stocks upward on Monday morning, as investors and tech companies braced for quarterly earnings scheduled for later this week, most notably from Tesla (TSLA) and Netflix (NFLX).
The S&P 500 (^GSPC) edged up by about 0.5%, while the Dow Jones Industrial Average (^DJI) increased 0.6% or roughly 200 points. The tech-heavy Nasdaq Composite (^IXIC) gained 0.3%.
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Rite Aid, Lululemon, and Pfizer: Stocks trending in premarket trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page in premarket trading on Monday:
Rite Aid Corporation (RAD): Rite Aid’s…
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