US equities rose on Monday as investors turned their attention to the virtual summit between US President Joe Biden and Chinese President Xi Jinping, trying to look past a continued rise in inflation.
The two leaders will discuss how to control competition between the superpowers, the White House said in a statement.
The Benchmark S&P 500 rose Monday after closing with a loss last week, breaking a five-day winning streak. The technology-heavy Nasdaq-100 and Dow Jones Industrial Average both also rose.
Here’s where US indices stood at 9:30 a.m. Monday:
Despite rising inflationary pressures exacerbated by global supply chain disruptions, third-quarter corporate earnings have largely exceeded Wall Street expectations.
Data from Fundstrat show that of the 91% of S&P 500 companies that have reported earnings in the third quarter so far, 81% have beaten the profit estimates with a median of 9%, while 72% have beaten the turnover estimates with an average of 5%.
Still, business leaders sound cautious about the impact of rising prices on future earnings. The number of S&P 500 companies mentioning inflation on their earnings calls rose to a 10-year high in the third quarter, according to data from FactSet.
285 companies have cited the term “inflation”, the highest number since 2010, with around 40 S&P 500 companies not yet reporting.
Bond yields fell on Monday after rising sharply the previous week as the release of inflation data raised expectations that the Federal Reserve would have to raise interest rates faster than expected.
The yield on 10-year government bonds fell to 1.578% on Monday compared to Friday’s 1.583%. Bond yields and prices are moving in opposite directions.
Oil prices fell as investors weighed on the possibility that Biden could approve the release of strategic reserves.
West Texas Intermediate crude fell as much as 0.84% to $ 80.11 per barrel. Brent crude, the oil’s international benchmark, fell 0.92% to $ 81.41 a barrel. barrel.
Gold fell slightly by 0.04% to $ 1,864.56 per share. ounce.