US stocks rose on Monday after a bruising sell-off as investors looked ahead to a big week of events, with the Federal Reserve’s latest policy decision and earnings from Apple (AAPL) on the calendar.
The benchmark S&P 500 (^GSPC) climbed about 0.7%, after officially entering correction territory on Friday, while the Dow Jones Industrial Average (^DJI) jumped roughly 0.8%, or more than 250 points, after shedding more than 350 points at its last close.
The tech-heavy Nasdaq Composite (^IXIC) was also up around 0.8% in the wake of a downbeat week driven by mixed results for Big Tech earnings.
Eyes are now on the US central bank and Apple, the biggest company on the S&P 500, to lift spirits after a tough few months for the stock market. Also closely watched is the US jobs report for October, due Friday.
A jump in the Fed’s preferred inflation metric has raised expectations that policymakers will stick to their “higher for longer” stance and hold interest rates steady in their decision on Wednesday.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Apple is set to release its quarterly results on Thursday after the market close, with any impact from China’s moves to constrain the use of iPhones in focus.
Meanwhile, investors are weighing what McDonald’s earnings out Monday say about the US consumer, which has proven resilient in the face of high borrowing costs. The burger giant beat earnings estimates for the third quarter as higher menu prices boosted sales growth.
In commodities, benchmark oil prices fell as Israel’s measured start to its campaign in Gaza eased fears that the conflict will escalate throughout the Middle East — seen as encouraging investors to dive back into markets. West Texas Intermediate futures (CL=F) lost 1.8% to reach $84.01 a barrel, while Brent futures (BZ=F) shed 1.5% to trade around $87.86 a barrel.
AMcDonald’s rises on earnings beat
McDonald’s (MCD) shares were up about 1% on Monday after the fast food giant reported third quarter earnings that beat expectations as higher menu prices boosted sales growth.
As Yahoo Finance’s Brooke DiPalma reports:
Global systemwide sales — which include sales at company-owned and franchised restaurants — increased 11%. Global same-store sales jumped 8.8%, higher than analysts’ estimates of 7.79%, per Bloomberg consensus data.
Revenue jumped 14% year over year to $6.69 billion, higher than estimates of $6.52 billion. Adjusted earnings per share came in at 3.19, up 19% from last year.
CEO and President Chris Kempczinski said the results demonstrate the company’s “strength as the industry leader” in the release.
“The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers,” he said.
Shares of McDonald’s are down nearly 3% year to date, trailing behind Restaurant Brands International (QSR), which is up nearly 2% year to date but ahead of YUM! Brands (YUM) shares, which are down nearly 7%.
Read more here.
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Stocks open higher
Stocks opened higher on Monday with all three major indexes notching gains to kick off a busy trading week.
The S&P 500 (^GSPC) jumped about 0.8% after officially entering correction territory on Friday. The Dow Jones Industrial Average (^DJI) also climbed 0.8%, or more than 250 points, after shedding more than 350 points at its last close, while the tech-heavy Nasdaq Composite (^IXIC) soared nearly 0.9%.
KStock futures point higher after bruising sell-off
The major US stock gauges were on track for gains at the open after the S&P 500 officially entered correction territory last week. Investors are now looking to the Fed decision and Apple earnings later in the week to provide a boost.
Futures on the Dow Jones Industrial Average (^DJI) were up 0.66%, or 212 points, while S&P 500 (^GSPC) futures put on 0.64%. Contracts on the tech-heavy Nasdaq 100 (^NDX) popped 0.65%.
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