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Shares rose sharply at the start of trading on Monday, as investors tried to rebound after last week's sharp losses, anticipating a new quarterly earnings week.
What are the main landmarks?
The Dow Jones Industrial Average
DJIA, + 1.17%
traded 235 points, or 1% to 24,930, while the S & P 500
SPX, + 1.43%
increased by 37 points, or 1.4%, to 2,695. The eleven sectors of the Broader Market Index were up. The Nasdaq composite index
NQZ8, + 0.80%
increased by 94 points, or 1.4% to 7,269.
Last week saw the S & P 500
SPX, + 1.43%
down 3.9% to end Friday at 2,658.69, and the index is 7.6% weaker to the month so far, while the Dow
DJIA, + 1.17%
dropped 3% last week to 24,688.31; it's 6% lower for the month. Last week's carnage saw the S & P and the Dow turn negative for the year, although trading on Monday morning slightly boosted the two indices since the start of the year.
The Nasdaq composite, techno-heavy
COMP + 1.19%
Last week, major indices fell 3.8% to be in correction territory, defined as a 10% or more decline from a recent peak. The index is down 9.9% in October.
What motivates the market?
Analysts attribute the weakness of the stock market in October to a number of factors, including concerns over global and domestic growth prospects, worries about record US earnings growth, and fears of a policy failure. monetary policy on the part of the Federal Reserve.
The earnings season saw companies continue to exceed earnings and sales expectations, but badysts said weak forecasts from some companies may have hurt performance. Until Friday, 240 companies in the S & P 500 had reported their quarterly results, with expectations exceeding 81%, according to Jefferies.
A Bloomberg report that China was considering cutting the tax on most cars by half would also have had a positive impact on global equities in general and the actions of automakers in particular.
What do the badysts say?
Last week's sale "seems to have exceeded fundamentals. We expect positive economic data and forward-looking EPS (earnings-per-share growth) to support the rebound in the S & P 500 index up to the target of 2,850 at the end of the year. Year, "wrote badysts led by David Kostin at Goldman Sachs.
"US futures were previously under pressure," writes Dave Lutz, head of Jonestrding's ETFs, blaming the weakness on investors' skepticism about IBM's acquisition of Red Hat Inc. their taxes on cars in half, "he wrote.
What stocks are under discussion?
Actions of Red Hat Inc.
RHT, + 46.91%
surged 47% in trading Thursday after International Business Machines Corp.
IBM, -1.19%
said he would be acquiring the open-source software company for $ 190 per share. IBM shares fell 3.2%.
Northrop Grumman
NOC -1.42%
announced Monday a $ 1 billion accelerated share buyback deal with Goldman Sachs & Co.
GS + 2.41%
The actions of the defense contractor rose 1.3% on Monday morning.
Actions of Ford Motor Company
F + 5.12%
following the publication of the report on a possible reduction of the car tax in China. General Motors Company
GM + 3.51%
The stock was also supported by the news, up 4.8%. Ford was also boosted by Goldman Sachs' move to buy neutral, where it had been since July 2016, and its price target rise to $ 12 per share, up 34% from at the closing of Friday.
First Data Corp.
FDC, -11.76%
Shares fell sharply on Monday, down 9.7% after the company reduced its forecast of revenue for the year 2018.
Micron Technology, Inc.
MU, + 1.24%
Shares are up 1.3% on Monday, after the company's shares fell 12.5% last week.
Actions in Visa
V + 1.18%
also hold a recovery, up 2.1%, after being one of Dow's biggest losers last week.
Only a few companies will release their results on Monday, but investors will remain vigilant. Mondelez International Inc.
MDLZ, + 1.80%
, which will announce the results after the close.
What data are developed?
Consumer spending rose 0.4% in September, the government reported on Monday, in line with MarketWatch forecasts. Revenues rose 0.2%, the smallest increase in 13 months, while inflationary pressures seemed to be easing. The personal consumption expenditure inflation index, the Federal Reserve's preferred price gauge, rose 0.1% in September, while the 12-month rate slipped from 2.2% to 2%.
The president of the Federal Reserve Bank, Chicago, Charles Evans, will speak at 9:45 am, after which the central bank officials will not be allowed to discuss the policy publicly before the Fed meeting on November 8th.
How are other markets traded?
Asian markets were down that day, like the Shanghai Composite Index
SHCOMP, -2.18%
Shenzhen Composite Index
399,106, -2.02%
and Nikkei 225
NIK -0.16%
all came across concerns about the US-China trade relationship.
European stocks skyrocketed, with the Stoxx Europe 600
SXXP, + 1.51%
UKX, + 1.66%
up more than 1.5% in the Monday negotiations.
Oil futures
CLZ8, -1.04%
slipped Monday after three weeks of declines. Gold
GCZ8, -0.25%
also retreated while the US dollar
DXY, + 0.22%
slightly increased.
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