U.S. Stocks Waver as Earnings Season Set to Begin
U.S. stocks edged higher Monday as investors prepared for corporate earnings season to kick off this week.
The S&P 500 rose 0.2%, while the Dow Jones Industrial Average gained 0.3%, or about 102 points. The tech-heavy Nasdaq Composite hovered around the flatline. All three indexes closed Friday at records.
Earnings season begins in earnest Tuesday, and investors will be watching to see if companies’ results—and what executives have to say about business in coming months—justify the high valuations in the equity market.
Analysts expect that S&P 500 profits rose 64% in the second quarter from a year earlier, according to FactSet. That growth rate would be the highest in more than a decade, but is measured against a period in which the pandemic had upended the business environment, causing a steep decline in profits.