Stocks rose Monday as investors looked ahead to more inflation data and the start of the second-quarter earnings season this week. The Dow Jones Industrial Average climbed over 200 points, while the S&P 500 Index and Nasdaq Composite each added about 0.2%.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Wall Street is coming off a losing week Monday, with the Dow falling nearly 2%. The S&P 500 and Nasdaq each lost about 1% as market participants grew more cautious as bets that the Federal Reserve will raise interest rates later this month grew.
On Wednesday, investors will react to June's consumer price index reading, which is forecasted to rise 0.3% month-to-month and 3.1% annually, according to consensus expectations. Thursday will also see June's producer price index report. Both of these reports will offer market participants more clues on the central bank's next moves for the later half of the year.
Amazon's
"We project 10% 2Q and 10% 3Q [gross merchandise value] growth for Amazon (as 3Q is comping Prime Day last year), and note Amazon is likely still taking share within Online Retail (we estimate industry is growing in mid-single digit range)," Post wrote in a note Sunday.
The start of the second-quarter earnings season kicks off later this week, with companies like Delta Air Lines
Strategists at Morgan Stanley warned that corporate profits will be affected for the rest of the year "as pricing power declines and costs remain sticky."
"Inventory has grown sharply while demand, especially demand for goods, is falling," the strategists wrote in a Sunday note. "Companies will need to decide how they want to handle excess inventory and we believe many will turn to aggressive discounting; Autos is leading this debate."
However, Goldman Sachs believes corporations are in a good position to beat low expectations, according to Chief U.S. Equity Strategist David Kostin.
"Consensus expects a 9% year/year decline in S&P 500 EPS driven by flat sales growth and margin compression. We expect companies will be able to meet the low bar set by consensus. Negative EPS revisions for 2023 and 2024 appear to have bottomed and revision sentiment has improved," Kostin said in a note to clients.
