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Indexes rally ahead of megacap gains




Indexes rally ahead of megacap gains
A parking lot outside a Tesla building.

Tesla will report earnings for the first three months of 2024 after the close on Tuesday.Justin Sullivan

  • U.S. stocks closed higher Monday, ending a six-day losing streak for the S&P 500.

  • Traders are bracing for gains from high-profile companies, looking for a new catalyst to restart the first-quarter rally.

  • Tesla will report earnings after the closing bell on Tuesday, followed by Meta on Wednesday.

Stocks rose Monday, with the S&P 500 rising nearly 1% and snapping a six-day losing streak.

Investors focus their attention on earnings reports of leading companies. Tesla reports on Tuesday after the closing bell Wall Street analysts are watching potentially more pain for the auto company amid its 43% share decline as early as 2024.

“Faced with a pivot in the investment thesis and a sea of ​​uncertainty, this call from Tesla is especially highly anticipated,” Barclays analysts wrote. “Expect a negative catalyst.”

The market story was bleak, with the major averages all losing ground last week amid a weakening macro outlook. The market’s view on rate cuts in 2024 has faded due to persistently high inflation and aggressive Fedspeak that has revised monetary policy forecasts.

A slew of Fed officials commented last week, the tone decidedly less forgiving than recent comments, with most indicating the central bank was rushing to cut interest rates. The Fed’s lack of move makes this earnings season particularly important as traders struggle to salvage a strong first-quarter rally that stalled in April.

However, a brand new inflation reading could be a new source of fear on Friday, when markets receive the latest data on personal consumption expenditure, which is the Fed’s preferred inflation gauge.

“Friday’s PCE inflation data will be key in this regard, with markets bracing for a modest rebound in headlines and a mild decline in the headline figure,” Matthew Ryan, head of market strategy at financial services firm Ebury, wrote in a note note about Monday.

Here’s where the US indexes stood at 4pm on Monday:

Here’s what else is going on:

In commodities, bonds and crypto:

  • West Texas average Crude oil rose 0.1% to $83.02 a barrel. Brent crude oilthe international benchmark, fell 0.3% to $87.05 per barrel.

  • Gold climbed, fell nearly 3% to $2,343.70 per ounce.

  • The yield on ten-year government bonds rose to 4.617%.

  • Bitcoin rose 2.4% to $66,321.

Read the original article Business insider