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Stocks rebounded on Monday, after opening lower, as investors bet on a continuation of strong earnings reports from major companies. Tesla and Netflix gained ahead of third-quarter reports later this week.
The Dow Jones Industrials rose to within 12.97 points of breakeven to 35,281.79.
The S&P 500 recovered 10.19 points to 4,481.56.
The NASDAQ Composite gained 69.79 points to 14,967.13.
So far 41 S&P 500 components have reported third-quarter results, with 80% of them topping EPS expectations, according to data from
FactSet. Taking into account the companies that have already reported and estimates for the rest, third-quarter profit growth will total 30%, the third highest quarterly growth rate for S&P 500 companies since 2010.
A number of big names are set to report in the week ahead, including Netflix, Johnson & Johnson, United Airlines and Procter & Gamble on Tuesday. Tesla, Verizon and IBM are among the other names on deck for the week.
Disney shares lost more than 3% after Barclays downgraded the stock and predicted streaming subscriber growth will slow.
A few things dented sentiment on Monday. Overnight, China reported gross domestic product that disappointed, coming in at 4.9% annual growth in the third quarter. That was short of the 5.3% growth expected by economists polled by Reuters. Industrial production in China last month also fell short of expectations.
U.S. industrial production declined in September too, falling almost 1.28% to its lowest level since February, when it fell 3.02%.
Prices for 10-year Treasurys lost some ground, raising yields to 1.60% from Friday’s 1.58 %. Treasury prices and yields move in opposite directions.
Oil prices picked up nine cents to $82.37 U.S. a barrel.
Gold prices settled $2.40 to $1,765.90 U.S. an ounce.
