Shares trade higher with earnings, while more incentives are suggested

Shares trade higher with earnings, while more incentives are suggested

Shares traded higher on Monday as investors look forward to a round of quarterly corporate earnings results that are expected to improve from earlier this year. Talks on stimulation in Washington also remained in the spotlight.

The Nasdaq rose more than 2% and outperformed the S&P 500 and Dow. Shares of Amazon (AMZN) rose more than 4% the day before the start of the company’s annual Prime Day event, which usually brings in an influx of online shoppers who want to promote their offerings. Apple (AAPLshares also gained more than 4% as analysts made a rising rate ahead of the company’s iPhone 12 event on Tuesday, for an upgrade announcement, WedBush’s Dan Ives said it would likely be “the most important product range Apple iPhone 6 in 2014, “According to a note on Sunday.

The prospect of further fiscal stimulus by members of Congress will remain a point of interest for traders, although the chances of taking action before the election are slim. Parliament Speaker Nancy Pelosi and Finance Minister Steven Mnuchin are expected to begin further talks on an agreement this week, although little tangible progress has been made in the past week and in recent months. However, White House economic adviser Larry Kudlow offered an optimistic assessment of the talks between the White House and the House Democrats on Sunday, saying “supply and supply are somewhat limited between the two sides,” according to an interview with CNN “State of the Union”.

The third quarter corporate profit season begins in earnest this week with a number of major banks reporting results, including the JPMorgan Chase (JPM) and Citigroup (do) on Tuesday. The cohort, which has so far performed sharply against the wider market, with changes in the outlook for bank loan losses and commenting on the health of their customers is likely to shed light on the extent of the continuing pressure on the US economy.

Throughout the earnings season as a whole, companies are expected to report another drop in earnings from year to year amid the ongoing pandemic, albeit with a margin of less than the second quarter. Economists are looking for S&P 500 companies to report total earnings per share of 20.5% compared to last year, according to FactSet data from Friday.

Earnings this quarter come at a crossroads of some potentially moving events, including the possibility of vaccines being discovered and uncertain election results. These last two events make it possible to substantially change the key data for the S&P 500 companies and change the outlook that companies may report on their results, Goldman Sachs analysts noted.

“The new election data, vaccines and forthcoming third quarter earnings represent substantially cross-stocks for the next two months,” said Goldman Sachs analyst David Kostin. “However, the vaccine represents a more important factor than the outcome of the election for the recovery of the key elements of the S&P 500.”

11:13 a.m. ET: Twitter shares rise up to 6% to a five-year high following the upgrade of Deutsche Bank’s market share

Twitter (TWTR) shares rose as much as 6% on Monday morning to $ 48.65 per share, the highest level since April 2015, following an uptrend from Deutsche Bank.

The company upgraded its holdings of the social media company to Hold ‘s market and raised its price target to $ 56, showing a 22% increase from Friday’s closing levels. The company is “in a good position to take advantage of an event and a cyclical recovery,” Deutsche Bank analyst Lloyd Walmsley wrote in a research note.

“In our view, Twitter is in a good position to take advantage of a large event landscape in 2021, expand to more performance ads on the back of the ad server redesign and the new MAP product, and a high-margin subscription end product. Said Walmsley. “We are excited about the medium-term outlook for Twitter, but we can not get more optimistic, given the ad channel’s weak commentary. “Now we are starting to hear more positive feedback on the ad channel and we will take the opportunity to create a niche now before a stronger ad retrieval and enter the 2021 excitement period.”

10:40 am ET: Snowflake shares rise after Oppenheimer starts coverage with an overweight rating

Shares of Cloud Computing Snowflake (SNOW) rose after Wall Street Oppenheimer started the stock with a bullish rating of overweight and $ 300 price target, indicating a rise of 26% from Friday’s closing levels.

“Our upward stance on Snowflake reflects: (1) favorable secular issues, including the growing importance / use of data / analytics for business success and operational improvement. (2) growing business efforts to re-architecture the field of data management and transition to cloud-based platforms; (3) exposure to a large and growing data warehouse market; and (4) its ability to execute and utilize a “A successful land and expansion model that targets large companies and leads the expansion of use to new and existing customers,” analysts led by Ittai Kidron said in a note Sunday.

Wall Street analysts have so far rated Snowflake with 9 ratings and market equivalents, 10 Holds and 1 Sell, according to Bloomberg data. Shares of the stock have more than doubled since Snowflake’s initial public offering in mid-September.

9:32 a.m. ET: The rise in stocks is driven by technology. Nasdaq outperforms

Here were the main moves in the markets, from 9:32 a.m. ET:

  • S&P 500 (^ GSPC): +22.62 points (+ 0.65%) to 3,499.75

  • Dow (^ DJI): +83.03 points (+ 0.29%) to 28,669.93

  • Nasdaq (^ IXIC): +145.13 points (+ 1.25%) to 11,726.29

  • Raw (CL = F): – $ 0.56 (-1.38%) to $ 40.04 per barrel

  • Gold (GC = F): + $ 1.90 (+ 0.1%) to $ 1,928.10 per ounce

  • 10-year Ministry of Finance (^ TNX): +1.2 bps for 0.779% yield

7:36 a.m. ET Monday: Future stock contracts lead to higher openness

Here were the main moves in the stock markets, from 7:36 a.m. ET:

  • S&P 500 Contracts (ES = F): 3,489.75, increase of 16.5 points or 0.48%

  • Futures Dow (ΥΜ = F): 28,539.00, 21 points or 0.07%

  • Futures Nasdaq (NQ = F): 11,887.00, increase of 162.25 points or 1.38%

  • Raw (CL = F): – $ 0.50 (-1.23%) to $ 40.10 per barrel

  • Gold (GC = F): + $ 0.30 (0.02%) to $ 1,926.50 per ounce

  • 10-year Ministry of Finance (^ TNX): +1.2 bps for 0.779% yield

A trader works on the floor of the New York Stock Exchange on August 8, 2008. REUTERS / Joshua Lott (UNITED STATES)

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