Stocks were in wait-and-see mode Monday as investors, still worried about the potential of a recession, prepared for a busy week ahead in corporate earnings and economic data.
The Dow Jones Industrial Average and S&P 500 wavered modestly throughout the day, while the Nasdaq stayed decidedly in the red throughout the session. Energy was the best performing sector of the day, while the biggest names in tech dragged ahead of their earnings this week.
There was little in Monday's headlines driving stock moves. Investors expect that to change later in the week, with earnings reports from a third of the S&P 500, a slew of economic data including GDP and consumer confidence and the Federal Reserve’s two-day meeting — which kicks off Tuesday. |
Jeff Kilburg, chief investment officer at Sanctuary Wealth, said the “guiding light” for stocks is the Treasury market. The 10-year U.S. Treasury yield trading under 3% allows stocks, especially tech names, to heal, he said.
“Those reverberations are felt in the stock market,” he said. “When you saw the correction of bear territory, that was due to interest rates; it wasn't due to profits shrinking, eroding or deteriorating.”
All of the major indexes are on track for their best month of 2022. After a brutal year for stocks, the Dow is up 3.95% for the month and the S&P 500 is 4.8% higher. The Nasdaq, though still deep in bear market territory, is also set for its best month this year, up 6.8%. |
