The Dow Jones industrial average edged higher on Monday, as traders tried to add to gains seen last week and weighed recent moves in rates.
The 30-share average traded 190 points higher or 0.6%. The S&P 500 traded near flat, while the Nasdaq fell 1.1%.
Facebook-parent Meta cut shares to neutral from buy after Bank of America cut its stake by more than 3.1% on declining ad spending. Other tech giants, including Amazon, Netflix and Google-parent Alphabet, are also seeing yields rise again, dragging down the Nasdaq.
The 10-year Treasury yield rebounded from earlier declines on Monday. It last traded up 6 basis points at 4.278%. The 2-year yield also rose 2 basis points to 4.511%. It rose to 4.33% at one point on Friday before the Wall Street Journal reported that some Federal Reserve officials were concerned about raising interest rates too far.
The moves come after another volatile week for stocks as the third-quarter earnings season heats up. The major averages had their biggest weekly gains since June, with the Dow advancing 4.9%. The S&P 500 and Nasdaq rose 4.7% and 5.2%, respectively.
Part of those gains came on Friday, when the Dow rallied more than 700 points, while the S&P 500 and Nasdaq each rose 2.3%.
Investors will be watching the earnings of tech companies like Apple, Alphabet, Amazon and Microsoft this week. Wall Street will also watch for inflation data, with October manufacturing and services purchasing managers’ indexes due on Monday.
“Certainly, we’re seeing a real separation between winners and losers, and the market is really starting to reward those positive earnings reports,” said Kelsey Mowry, president of Motley Fool Asset Management. He pointed to Netflix, which was trading up to double digits in positive earnings, while Snap fell more than 20% after reporting.
So far, earnings reports have had mixed results for stocks. Bank stocks rose more than 4% after Goldman Sachs and JPMorgan Chase reported results. But not all results were positive — Snap fell 28% after reporting a revenue miss.