By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica
Netflix results due after the close
U.S. stocks rose on Monday, with major indexes advancing in a
broad rally as the latest round of corporate earnings continued to
support the thesis that companies were growing.
Need to know:This jumpy stock market may have found a
bottom--here's why
(http://www.marketwatch.com/story/this-jumpy-stock-market-may-have-found-a-bottom-heres-why-2018-04-13)
What are the main benchmarks doing?
(http://www.marketwatch.com/story/us-stock-futures-slip-as-global-tensions-persist-with-big-bank-earnings-ahead-2018-04-13)The
Dow Jones Industrial Average rose 155 points, or 0.6%, to 24,515.
The S&P 500 added 12 points to 2,669, a rise of 0.5%. The
Nasdaq Composite Index rose 32 points, or 0.5%, to 7,139.
Gains were broad-based, with all 11 primary S&P 500 sectors
higher on the day.
Last week, the Dow booked a gain of 1.8%, while the S&P rose
2% and the Nasdaq rose 2.8%.
What's driving markets
Geopolitical issues remain in focus after the U.S. joined with
France and Britain to launch missiles that destroyed much of
Syria's chemical-weapons capabilities on Saturday. The strikes left
much of President Bashar al-Assad's conventional military
facilities intact, which may ease fears of an escalation in
tensions with Russia, a backer of Syria's regime.
Corporate earnings are likely to be more important for
investors, however. A number of bellwether names, including Netflix
Inc. (NFLX) and General Electric Co. (GE), are scheduled to report
in the coming days, joining Bank of America, which reported early
Monday.
According to FactSet, earnings for companies in the S&P 500
are expected to grow 17.3% in the first quarter
(http://www.marketwatch.com/story/hopes-are-high-for-this-earnings-seasonand-that-could-prove-dangerous-2018-04-09),
while sales grow 10%. For both, such rates would represent the
fastest pace of growth since the first quarter of 2011.
Read:Netflix earnings: Another 'beautiful quarter,' or are
subscriber expectations too high?
(http://www.marketwatch.com/story/netflix-earnings-another-beautiful-quarter-or-are-subscriber-expectations-too-high-2018-04-13)
Which stocks are in focus?
Bank of America Corp.(BAC) rose 0.2% beating profit and revenue
expectations
(http://www.marketwatch.com/story/bank-of-america-tops-profit-revenue-expectations-2018-04-16).
The results follow JPMorgan Chase & Co. (JPM), Citigroup Inc.
(C) and Wells Fargo & Co. (WFC), all of which lost ground
Friday even after posting earnings that were either in-line or
better than expected. Some say that could be due to concerns that
earnings growth has peaked
(http://www.marketwatch.com/story/how-the-stock-market-reacts-to-earnings-will-be-telling-2018-04-14).
The financial sector rose 0.4% on Monday.
And:Tax cuts were supposed to juice the economy, but banks
aren't seeing it
(http://www.marketwatch.com/story/tax-cuts-were-supposed-to-juice-the-economy-but-banks-arent-seeing-it-2018-04-13)
U.S.-listed shares of WPP PLC(WPP.LN) fell 5.4% after Chief
Executive Officer Martin Sorrell resigned over a probe into an
allegation of personal misconduct
(http://www.marketwatch.com/story/wpp-ceo-martin-sorrell-steps-down-2018-04-15).
Icahn Enterprises L.P.(IEP) rose 0.8% after announcing its
majority-owned Tropicana Entertainment Inc. has entered a deal to
sell its real estate to Gaming and Leisure Properties Inc. (GLPI)
for $1.85 billion. It will also merge its gaming and hotel business
into Eldorado Resorts Inc.(ERI). Shares of Eldorado jumped 6% in
premarket trading.
Alkermes PLC (ALKS) jumped 5% after the Food and Drug
Administration accepted the biopharmaceutical firm's new drug
application for its treatment for depression.
MoviePass majority owner Helios & Matheson Analytics
Inc.(HMNY) rallied 2% in premarket trading, extending a gain that
started after Verizon Communications Inc. (VZ)disclosed a large
equity stake in the company
(http://www.marketwatch.com/story/moviepass-owner-helios-mathesons-stock-jumps-again-after-verizon-discloses-large-stake-2018-04-16).
Navistar International Corp. (NAV) rose 4.5% after Volkswagen
AG's commercial-vehicles business said it is considering increasing
its stake
(http://www.marketwatch.com/story/navistar-shares-jump-as-vw-mulls-raising-stake-2018-04-16)
in the U.S. truck company to more than 17%.
NewLink Genetics Corp. (NLNK) tumbled 14% after the company said
it won't proceed as planned
(http://www.marketwatch.com/story/newlink-shares-fall-on-late-stage-trial-changes-2018-04-16)
with a late-stage trial of its indoximod drug for advanced
melanoma.
What are analysts saying?
"With trade headlines dying down, for now, the market still
closer to the lower end of our target valuation range, and likely
continued earnings momentum ahead, we remain tactically bullish,"
wrote Michael Wilson, chief U.S. equity strategist at Morgan
Stanley. "We think first-quarter earnings season should deliver on
high expectations and help the market move higher toward a cyclical
top in equities we expect to occur later this year."
What is on the economic docket?
Sales at U.S. retailers rose 0.6% in March
(http://www.marketwatch.com/story/us-retail-sales-spring-back-06-in-march-after-three-straight-declines-2018-04-16)
to end a streak of three straight declines, the Commerce Department
reported Monday, underscoring the improved financial picture of
American households and the resiliency of an economic expansion
that could turn out to be the longest ever.
Read: Americans are spending again after lying low for a few
months
(http://www.marketwatch.com/story/americans-are-spending-again-after-lying-low-for-a-few-months-2018-04-14)
Atlanta Federal Reserve President Raphael Bostic will kick off a
busy week for Fed appearances on Monday as he's expected to speak
on the economy and rural market trends to the Shoals Chamber of
Commerce in Florence, Ala., at 12:15 p.m. Eastern Time.
Meanwhile, Minneapolis Fed President Neel Kashkari, in an
interview with The Wall Street Journal published Monday,
(http://www.marketwatch.com/story/feds-kashkari-says-fiscal-stimulus-supports-moving-ahead-with-interest-rate-tightening-2018-04-16)
said he expects inflation will soon hit the central bank's 2%
target, making it easier to push on with interest-rate hiking
plans.
What are other markets doing?
(http://www.marketwatch.com/story/asian-markets-gain-though-trade-war-worries-dont-appear-over-yet-2018-04-10)
(http://www.marketwatch.com/story/asian-markets-gain-though-trade-war-worries-dont-appear-over-yet-2018-04-10)
(http://www.marketwatch.com/story/asian-markets-gain-though-trade-war-worries-dont-appear-over-yet-2018-04-10)Asian
markets surrendered much of an early lead
(http://www.marketwatch.com/story/asian-markets-pull-back-lose-early-gains-2018-04-15),
led by falls for China and Hong Kong. European stocks edged lower.
(http://www.marketwatch.com/story/european-stocks-inch-lower-as-syria-conflict-stays-on-traders-radars-2018-04-16)
(http://www.marketwatch.com/story/european-stocks-inch-lower-as-syria-conflict-stays-on-traders-radars-2018-04-16)U.S.-listed
VanEck Vectors Russia ETF (RSX) dropped 1.3% in premarket, tracking
a 0.4% drop in the Russia RTS index ahead of possible U.S.
sanctions. The ruble was rising against the dollar, which bought
61.83 rubles, down from Friday's 62.35.
(http://www.marketwatch.com/story/european-stocks-inch-lower-as-syria-conflict-stays-on-traders-radars-2018-04-16)Read:These
cheap European stocks yield up to 8.1%
(http://www.marketwatch.com/story/these-beaten-down-stocks-look-like-bargains-and-yield-up-to-81-2018-04-14)
Gold futures inched lower, while the ICE U.S. Dollar Index held
steady. Oil prices pulled back as Syria worries eased somewhat
(http://www.marketwatch.com/story/oil-prices-drop-after-last-weeks-big-gains-as-syria-risk-fatigue-sets-in-2018-04-16)
and investors cashed in on some of last week's big gains.
(END) Dow Jones Newswires
April 16, 2018 09:53 ET (13:53 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.