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Stocks rose slightly on Monday as Wall Street kicked off a big week of earnings. The moves also come as expectations of aggressive policy easing from the Federal Reserve dampen.
The Dow Jones Industrials gained 17.7 points to 27,171.90, though a 1% drop in Boeing capped the index’s gains.
The S&P 500 progressed 8.42 points to 2,985.03, as the tech sector outperformed
The NASDAQ Composite strengthened 57.65 points to 8,204.14
Boeing shares fell after Fitch downgraded its outlook on the airplane maker to negative. Tech shares rose 1%, led by chipmakers.
Applied Materials, Micron Technology and Lam Research rose at least 3.7% after Goldman Sachs upgraded them, noting that excess inventory for memory chip companies "will be depleted" faster than expected.
More than a quarter of the S&P 500 reports earnings this week including so-called FANG names Facebook, Google’s parent Alphabet and Amazon, along with blue chips like McDonald’s and Boeing. Facebook, Amazon, and Alphabet all closed higher.
So far, more than 15% of the S&P 500 has posted quarterly results. Of those companies, 78.5% have topped analyst expectations for earnings while 67% have reported better-than-expected quarterly revenues
Market expectations for a 25 basis-point rate cut later this month are at 75.5%. Meanwhile, traders are also pricing in a 24.5% chance of a 50 basis-point cut.
Prices for the benchmark 10-year U.S. Treasury sagged again, raising yields back to Friday’s 2.05%. Treasury prices and yields move in opposite directions.
Oil prices added 46 cents at $56.09 U.S. a barrel.
Gold prices stayed afloat one dollar to $1,425.70 U.S. an ounce.
