U.S. stock indexes were seeing gains firm early Monday, as traders reacted to a jobs report at the end of last week that showed weaker-than-forecast employment growth and prepared for the release of third-quarter earnings.
What are major indexes doing?
The Dow Jones Industrial Average
gained 161 points, or 0.5%, to trade 34,910.
The S&P 500
advanced 19 points, or 0.4%, to 4,409.
The Nasdaq Composite
rose 59 points, or 0.4%, to 14,637.
Stocks wobbled on Friday, but logged weekly gains. The Dow advanced 1.2% last week, while the S&P 500 rose 0.8% and the Nasdaq Composite eked out a 0.1% rise.
Sign up for a brand new MarketWatch newsletter on crypto launching next month. Use this link to subscribe to “Distributed Ledger,” where every week we highlight the most timely news in the crypto and blockchain industry, from developments in digital-asset companies, exchanges, funds and ventures, as well as important sector research and data. And of course, we’ll keep you up to speed on price performance in all the major crypto.
MarketWatch and Barron’s also is gathering the most influential figures in crypto to help identify the opportunities and risks that lie ahead in digital assets on Oct. 27 and Nov. 3. Sign up now!
What’s driving the market?
With no economic releases due on Columbus Day, and the U.S. bond market closed, analysts were left dissecting the report that showed 194,000 nonfarm jobs added in September.
“Friday’s U.S. employment report was sufficiently mixed to revive the debate over the whether the Fed will really go ahead with the planned tapering next month. Despite the headline miss, the underlying numbers should just about meet Chair [Jerome] Powell’s requirement of ‘decent’ and ensure that the existing schedule remains intact,” said Ian Williams, strategist at U.K. broker Peel Hunt.
He added that the third-quarter earnings season will be even more crucial in supporting valuations as yields rise. Major U.S. banks including JPMorgan Chase
Bank of America
are due to report results this week.
Analysts have expressed concern that supply-chain issues that have spread throughout the global economy will compress profit margins, and that inflation will limit consumer demand.
The yield on the benchmark 10-year Treasury
rose 14 basis points last week to 1.60%, the biggest weekly gain since Feb. 19.
Which companies are in focus?
Shares of Southwest Airlines Co.
fell 2.4% on Monday, as the airline canceled hundreds of flights over the weekend, a move it blamed on weather and air-traffic control issues.
Merck & Co. Inc.
on Monday asked U.S. regulators to authorize the pill developed to treat COVID-19. Shares were little changed. Its stock was trading flat.
What are other markets doing?
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, rose 0.1%.
Oil futures continued to surge, with the U.S. benchmark
up 3.1% at $81.83 a barrel, on track for its first finish above $80 since October 2014. Gold futures
edged down 0.1%.
The Stoxx Europe 600
fell 0.5%, while London’s FTSE 100
edged up 0.2%.
The Shanghai Composite
ended fractionally lower, while the Hang Seng Index
rose 2% in Hong Kong and Japan’s Nikkei 225