U.S. Stocks Propel Higher in Anticipation of Megacap Earnings
As a significant week for mega-cap earnings unfolds, U.S. stocks show a noteworthy upswing. The market is further stimulated by the impending release of the July jobs report due on Friday. At 10:44 ET, indices demonstrated this positive outlook - the Dow Jones Industrial Average surged by 68 points, or 0.2%, while the S&P 500 and the NASDAQ Composite both incremented by 0.1%.
Big Tech's Financial Scorecard Takes Center Stage
The past week's performance wrapped up on an optimistic note, fuelled by indications of subsiding inflation and an economically robust environment. Officials foresee the potential of a soft landing, thus mitigating concerns of a possible recession. Tech titans Apple Inc. and Amazon.com, Inc. are set to release their earnings reports this week, following the upbeat earnings announcements by Alphabet Inc. and Meta Platforms, Inc. the previous week.
Federal Reserve's Policy Positively Impacting Stock Market
Hopes of the Federal Reserve concluding its cycle of interest rate hikes have contributed to a rising stock market. July's additional quarter-point rate increase has not deterred the Dow's longest winning streak since 1987, propelled primarily by financial, energy, and healthcare stocks.
Potential Soft Landing Boosts Economic Outlook
Neel Kashkari, President of the Minneapolis Fed, optimistically declared on Sunday that the economy has been progressing unexpectedly well. Even with unemployment near historic lows at 3.6%, a slight increase to 4% could still represent a soft landing, according to Kashkari. Further insights are expected later today from Chicago Fed President Austan Goolsbee.
SoFi Technologies and ON Semiconductor Shares Surge, Chevron Upgraded to Buy
Noteworthy stocks to watch include ON Semiconductor Corporation, which saw its shares rise by 3.6% as it gears up to report earnings today. SoFi Technologies Inc. also gained traction, with its stock skyrocketing by 22% on the back of a favorable quarterly revenue report and an enhanced guidance projection for 2023. Chevron Corp. shares climbed 3% following Goldman's upgrade to 'buy' from 'neutral', suggesting an optimistic outlook for the oil major.