Stocks churned higher during mid-morning trading on Monday, building on earlier gains as investors prepared for a host of corporate earnings this week. Wall Street also braced for heightened geopolitical tensions as the US attempted to advance efforts to contain the Israel-Hamas conflict.
The Dow Jones Industrial Average (^DJI) increased 1.1% or nearly 400 points while the S&P 500 (^GSPC) gained about 1.2%. The tech-heavy Nasdaq Composite (^IXIC) increased more than 1%.
Earnings season picks up steam this week, with reports from Goldman Sachs (GS) and Bank of America (BAC) due Tuesday after upbeat results from their Wall Street peers. Updates from Tesla (TSLA) and Netflix (NFLX) kick off tech earnings on Wednesday, likely to be scrutinized for clues to the sector’s resilience amid higher-for-longer interest rates.
Read more: What a Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
Alongside JPMorgan’s results on Friday, CEO Jamie Dimon said this may be “the most dangerous time the world has seen in decades,” a warning that is still resonating days later.
Investors remain focused on the Middle East crisis — and right now on whether the US and its allies can stop the clash from drawing in other countries, especially Iran. A full-blown regional conflict could send oil prices surging well above $100 a barrel, risking a global recession, some analysts believe.
Crude oil futures (CL=F) and Brent crude futures (BZ=F) traded in a tight range on Monday around $87 and $91 a barrel, respectively, after climbing almost 6% on Friday.
But prices for gold and bonds fell, attracting those seeking safe havens. The 10-year Treasury yield (^TNX) rose to 4.69%, recouping some of its losses from last week.
Rite Aid files for bankruptcy
Rite Aid (RAD) filed for bankruptcy protection on Sunday night as the company grapples with declining sales and a looming opioid lawsuit that has hung over the retail pharmacy chain.
The bankruptcy is part of an effort to shutter unprofitable stores, address litigation over its role in the opioid pandemic and manage its debt load of…