Market Update: Dow Industrials Add More Than 300 Points as Q2 Earnings Season Underway

U.S. stocks surged on Monday, with the Dow notching its strongest session in a month as investors turned their attention to corporate earnings season.

Stocks Surge

All of Wall Street’s major indexes booked solid gains on Monday, extending their recent rally after Friday’s nonfarm payrolls report.

The Dow Jones Industrial Average rose 320.11 points, or 1.3%, to close at 24,776.59. Twenty-five of 30 index members finished higher, led by Caterpillar Inc. (CAT) and  J.P. Morgan Chase & Co. (JPM).

The broader S&P 500 Index jumped 0.9% to 2,784.17, with seven of 11 primary sectors reporting gains. Financials led the rally, climbing 2.3% as a sector. Industrials rose 1.8%.

On the opposite side of the ledger, four sectors recorded steep losses, with utilities falling more than 3%. Telecommunication services were off 1.5% by the close.

The technology-focused Nasdaq Composite Index advanced 0.9% to 7,756.20.

A gauge of implied volatility known as the CBOE VIX declined at the start of the week. The so-called “fear index” closed down 5.1% at 12.69, its lowest in three weeks.

Corporate Earnings Ahead

Wall Street is gearing up for what’s expected to be another solid quarter of earnings. According to FactSet, second-quarter earnings for S&P 500 companies are expected to grow 20% year-over-year. That would mark the second highest earnings growth rate since Q3 2010.

Although corporate reporting is already underway, Friday marks the unofficial start to earnings season with some of the nation’s largest banks scheduled to deliver results. Citigroup Inc. (C), J.P. Morgan Chase & Co. and Wells Fargo & Co (WFC) are all scheduled to report on the 13th.

In recent quarters, U.S. companies have benefited from a synchronized global recovery and signs of stability at home. The implementation of tax reform is expected to help companies’ bottom line in Q2 and beyond.

Cryptocurrencies Limited by Weak Volumes

The cryptocurrency market hovered within a relatively narrow range Monday, as diminishing trade volumes kept bullish momentum at bay.

In terms of overall market capitalization, cryptocurrencies bottomed near $271 billion on Monday. At the time of writing, the total value of all coins was closer to $273 billion, according to CoinMarketCap.

Bitcoin was relatively unchanged compared with 24 hours ago, with prices holding near $6,800. The largest cryptocurrency by market cap peaked near $6,900 on Sunday.

Virtually every major altcoin in the top-ten posted losses of at least 1.8%. EOS was the biggest decliner, falling 6.1% to $8.22.

Ethereum shed 2.2% to $481 after crossing $500 for the first time in two-and-a-half weeks. Bitcoin cash fell 2.9% to $745.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi