Stocks rise to start busy week earnings, inflation data

US stocks rose early on Monday Wall Street heads into third-quarter earnings season and attached to a volume of inflation statements.

S&P 500 (^ GSPC) rose 0.3%, while the Dow Jones Industrial Average (^ DJI) rose 140 points or 0.5%. The tech-heavy Nasdaq Composite (^IXICincreased by 0.1%.

Chicago Federal Reserve Chairman Charles Evans Sentiment was boosted early Monday with enthusiastic comments at the National Conference on Business Economics.

“I think we can reduce inflation relatively quickly and avoid recession at the same time,” Evans said.

Still, the CBOE Volatility Index (^VIX), which measures short-term expectations of market volatility, is close to the 33 level. And Treasury yields extended their recent climb. Oil retreated after rising 17% last weekBig jump since Russia invaded Ukraine.

The moves come after an erratic week that began with a sharp rally Ended with a sharp sale It wiped out most of the gains. The recent decline was fueled by a stimulus Strong September jobs report That’s what Federal Reserve officials have assured investors No shift away from tight monetary policy Very soon.

The benchmark S&P 500 index was down 23.6% year-to-date through Friday’s close, but the total decline over nine single trading days was 32 points, according to Nicholas Collus of Data Trek Research.

He added that the bulk of lower days occurred on events related to the Consumer Price Index (CPI) or the Federal Reserve, one triggered by Russia-Ukraine tensions, and two by poor corporate earnings releases. All those factors are expected to test the US stock market in the coming week.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA on October 7, 2022. REUTERS/Brendan McDermid

With JP Morgan’s results, investors are bracing for a flurry of bank earnings that mark the start of a new earnings reporting period (JPM), City (C), Wells Fargo (WFC), and Morgan Stanley (Mrs) will all exit. Other companies, including PepsiCo, are set to report this week.PEP) and Delta Air Lines (DAL)

Researchers A A painful earnings season Steady inflation, high interest rates and geopolitical headwinds weigh on companies’ bottom lines.

“The bear market will not end until the deteriorating fundamental picture is more fully discounted,” Morgan Stanley chief equity strategist Mike Wilson said in a note.

On Wall Street’s plate September consumer price data, one of the most important statements ahead of the FOMC’s next policy-making meeting in November. While headline reading is again expected to moderate, all eyes will be on the “core” portion of the report, which will clear out the volatile food and energy categories. Economists polled by the Bloomberg Project Center CPI rose to 6.5% from 6.3% for the year, according to the latest estimates.

“Volatility in equity and fixed income markets will continue until there is a clear signal that inflation is under control,” Peter Essell, head of portfolio management at Commonwealth Financial Network, said in a recent note.

Alexandra Semenova is a Yahoo Finance reporter. Follow her on Twitter @alexandraandnyc

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