U.S. stock indices opened higher on Monday, with Wall Street gearing up for a week filled with earnings reports and economic data that may determine the market’s direction in the coming days.
U.S. Stock Market Performance
The S&P 500 opened up 0.4% in early trading, while the Nasdaq Composite rose by 0.2%.
The Dow Jones Industrial Average showed a significant gain, increasing by 284 points, or 0.7%.
U.S. Treasury Secretary’s Remarks
During his remarks, U.S. Treasury Secretary Scott P. Biesent did not provide definitive answers regarding the likelihood of a trade deal with China but indicated that progress had been made with other countries.
He added that the U.S. is working to strengthen its trade relationships with Asian partners, including Japan, while indicating that talks with China could occur depending on the situation.
China and Trade Negotiations
Biesent pointed out that China bears much of the burden in the current trade conflict, exporting five times more to the U.S. than it imports.
He also emphasized that the tariffs imposed on China may not be sustainable if tensions continue.
Earnings Season and Investor Expectations
The earnings season is shaping up to be volatile, with over 180 companies in the S&P 500 set to announce their results this week.
Prominent companies set to report include Amazon, Apple, Meta, and Microsoft, along with others in the financial, consumer, and healthcare sectors such as Visa, Coca-Cola, and Eli Lilly.
U.S. Markets in April
April has been a volatile month following President Trump’s announcement of new tariffs, and his subsequent partial retreat.
So far, the S&P 500 has dropped by 1%, while the Dow Jones has seen a nearly 4% loss. On the other hand, the Nasdaq has posted a modest increase of around 1%.
Economic Data Coming This Week
Investors are watching for key data this week on the labor market, inflation, and economic growth, including:
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The Non-Farm Payrolls report set to release on Friday.
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Q1 GDP data on Wednesday.
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The preferred inflation index by the Federal Reserve on Wednesday.
Notable Stock Movements
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Boeing: Shares rose by 2% after an upgrade to "Outperform" from Bernstein, citing stability compared to last year’s issues.
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Progressive: Stock climbed by 1% after being upgraded to "Buy" by Bank of America, with analysts seeing recent declines as a buying opportunity.
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Domino’s Pizza: Shares fell 3% after mixed quarterly results, surpassing earnings expectations but missing revenue targets.
