On Monday, Wall Street’s main indexes hit new highs, led by Tesla and bank stocks, as investors awaited the start of the second-quarter earnings season and a slew of economic data.
Quick market analysis
The Nasdaq gained 0.2% at the close, reaching a new high of 14,761.08. Meanwhile, the S&P 500 gained 0.3% and hit a record high of 4385.57. The Dow Jones industrials increased 0.4%, outperforming the other indexes.
Stocks fell early Monday but swiftly recovered as the major indices surged higher, with some indexes setting record highs. Investors are preparing for earnings season to begin this week, with major businesses beginning to release their second-quarter results on Tuesday. Before the market opens on Tuesday, JPMorgan (JPM) and Goldman Sachs (GS) will both announce earnings.
Analysts predict JPMorgan to report a 129% in EPS year over year, but an 11% drop in sales. Meanwhile, Goldman Sachs is likely to report a 219% gain in net income year over year, despite sales falling 9%. Disney (DIS) was one of the Dow Jones’ outperformers on Monday, rising over 3% in strong volume. After a failed breakout from a flat foundation earlier this year, stocks may be on the mend.
Goldman Sachs was up 2.4% in trading ahead of its earnings report on Tuesday. Meanwhile, JPMorgan’s shares increased by more than 1.4%. UnitedHealth (UNH) and American Express (AXP) both increased by about 1%.
Tesla (TSLA.O) rose by 4.38%, contributing significantly to increases in the S&P 500 and Nasdaq. Musk took the stand in court on Monday to defend Tesla’s 2016 acquisition of SolarCity. Tesla currently has a market capitalization of 660.56 billion with its share price at $6.
After Walt Disney (DIS.N) and Marvel’s “Black Widow” superhero film grossed $80 million in its debut weekend, the stock rose to a two-month high. In addition, ESPN Plus, the company’s streaming service, is set to increase its prices.
Didi Global Inc (DIDI.N) fell after the company revealed that China’s internet agency had asked app shops to delete 25 of the ride-hailing company’s applications and that the move could have an impact on the company’s income in the region.
Outlook
In recent sessions, investors have been concerned about rising inflation and the development of the Delta coronavirus variant, with traders swinging back and forth between preferring economy-linked value equities and tech-heavy growth names.
Investors will be watching quarterly results for early indications of how long the U.S. economic recovery will persist, with S&P 500 earnings per share forecast to jump 66% in the June quarter, according to IBES data from Refinitiv.
