US stocks hovered between gains and losses on Monday morning as investors braced for a big week of gains from heavyweight tech companies.
The Dow Jones Industrial Average rose 35 points, or about 0.1%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq Composite gained 0.3%, driven by Tesla.
Wall Street looks back on a successful week thanks to strong corporate earnings. The blue-chip Dow rose more than 1% last week and closed on Friday on a record. The S&P 500 was up 1.7% last week and had its third consecutive positive week, hitting an all-time high on Friday.
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Some of the biggest tech companies are expected to report their profits this week, including Facebook, Alphabet, Microsoft, Amazon, and Apple. A third of Dow companies will also be releasing quarterly results this week, including Caterpillar, Coca-Cola, Boeing and McDonald’s.
The Dow components Apple and Microsoft slid down in early trading. Facebook shares came under pressure after further whistleblower documents were released.
Tesla shares, which posted record sales and earnings last week, rose more than 4% after Morgan Stanley raised its price target from $ 900 to $ 1,200. The car rental company Hertz also announced that it would order 100,000 Tesla vehicles.
Energy stocks opened higher as West Texas Intermediate crude oil futures hit $ 85 a barrel. Exxon Mobil and Diamondback Energy stocks rose more than 1%.
Of the 117 Companies in the S&P 500 that have reported profits to date posted 84% numbers that exceeded expectations, according to Refinitiv. S&P 500 companies are expected to grow their profits by about 35% in the third quarter.
“Rising floods of profits are lifting all boats and adding to the bull market fire,” said Anu Gaggar, global investment strategist with the Commonwealth Financial Network. “The third quarter reporting season got off to a good start despite concerns about supply bottlenecks and labor shortages.”
The key averages posted solid gains for October. The Dow and S&P 500 are both up more than 5%, while the Nasdaq Composite is up 4.4% for the month to date.
Leading the October rally in the broader market was the energy sector, up 11% this month. Industrial, real estate, materials and financial stocks have all increased by at least 7% over the same period.
“Transportation, consumer discretionary and large-cap technology have been driving the market up for the past two weeks, suggesting that growth concerns over supply chain constraints are gradually easing,” said Lindsey Bell, chief investment strategist at Ally Invest.