Dow rises more than 150 points as Wall Street tries to add to last

On Oct 24, 2022

Dow futures rise slightly as Wall Street tries to build on its best week since June

The Dow Jones Industrial Average rose Monday, as traders tried to add to sharp the gains seen in last week and weighed the latest moves in rates.

The 30-stock average traded 186 points higher, or 0.6%. The S&P 500 was near flat, while the Nasdaq dipped 1%.

The 10-year Treasury yield on Monday ticked higher, recovering from an earlier decline. It last traded up about 4 basis points at 4.255%. The 2-year yield also rose 2 basis points at 4.59%. At one point on Friday it topped 4.33% before the Wall Street Journal reported that some Federal Reserve officials were growing concerned about raising interest rates too far.

The moves come after yet another volatile week for stocks as 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.

A chunk of those gains came Friday, when the Dow rallied more than 700 points, while the S&P 500 and Nasdaq each popped around 2.3%.

Investors will watch for earnings from tech giants such as Apple, Alphabet, Amazon and Microsoft this week. Wall Street will also be watching for more inflation data, with the October manufacturing and services purchasing managers indexes coming Monday.

“The S&P 500 was up +4.7% on the week, with energy/materials and technology outperforming and defensive sectors underperforming in essentially a reversal of the broad-based trend since early August,” said Raymond James analyst Tavis McCourt in a Sunday note. “Whether the rally is sustainable, or to what degree, is unknowable, but the reasons appear to be EPS revisions, which appear to be better than feared so far (much like 2Q), along with expectation that a front-end loaded Fed cycle could be coming to an end by early 2023.”

So far, earnings reports have had mixed results for stocks. Bank stocks Goldman Sachs and JPMorgan Chase gained more than 4% after reporting results. But not all results have been solid — Snap shed 28% after reporting an earnings miss.