Stock Market Opens Higher, Continuing Last Week’s Momentum

Dow Jones Stock Markets INDEXDJX:DJI

U.S. stocks are showing upward momentum as investors gear up for what could be a relatively calm week following last week’s flurry of market activity. Early on Monday, the S&P 500 (INDEXSP:.INX) climbed 0.5%, with the Dow Jones Industrial Average (INDEXDJX:.DJI) up by 164 points and the Nasdaq composite (NASDAQ:COMP) also rising by 0.5%. Berkshire Hathaway (NYSE:BRK.A) saw gains following the release of its latest financial results over the weekend. This week, attention will turn to speeches by several Federal Reserve officials, a preliminary consumer sentiment report, and earnings updates from companies like The Walt Disney Co. (NYSE:DIS) and Uber Technologies (NYSE:UBER). Treasury yields remained steady in the bond market.

In pre-market trading, futures for the S&P 500 and the Dow Jones Industrial Average were both up by 0.4%.

Tyson Foods (NYSE:TSN), a meat processor, saw a 2.6% increase in pre-market trading after comfortably surpassing analysts’ profit expectations, albeit slightly missing sales forecasts.

However, Spirit Airlines (NYSE:SAVE) saw a 3.5% decline before the bell as the budget airline fell short of Wall Street’s sales and profit targets for the quarter. The company, which has struggled to turn a full-year profit since 2019, has implemented cost-cutting measures such as deferring plane orders and furloughing pilots.

GameStop (NYSE:GME) experienced a more than 7% decline in early trading Monday, reversing some of the gains from the previous week when the so-called “meme stock” surged by nearly 45% in the closing days.

Later in the week, companies including Walt Disney Co., Airbnb (NASDAQ:ABNB), Anheuser-Busch (NYSE:BUD), and Uber (NASDAQ:UBER) will release their latest sales and profit reports.

In European markets, Germany’s DAX rose 1.1% and the CAC 40 in Paris gained 0.9%, while London markets remained closed for a bank holiday.

In Asia, the Hang Seng in Hong Kong closed 0.4% higher, and the Shanghai Composite index surged 1.2% as mainland Chinese markets reopened after a weeklong holiday. A private sector survey indicated slower growth in China’s services sector for April due to rising costs, although new orders increased and business sentiment improved.

Benchmark U.S. crude rose 62 cents to $78.73 a barrel, while Brent crude climbed 52 cents to $84.48 a barrel in electronic trading on the New York Mercantile Exchange.

The Japanese yen strengthened slightly after fluctuating last week, trading at 153.52 yen against the U.S. dollar early Monday.

On Friday, the S&P 500 had its best day since late February, rising 1.3% to 5,127.79, supported by cooler-than-expected U.S. employment data. The Dow Jones Industrial Average rose 1.2% to 38,675.68, and the Nasdaq composite closed 2% higher at 16,156.33, driven by strong gains in the technology sector.

The modest increase in hiring last month suggests that the Federal Reserve’s aggressive rate hikes may be impacting the economy, potentially paving the way for lower interest rates. This optimism over potential rate cuts fueled Friday’s rally.

Featured Image:  Megapixl © Alexandersikov

Please See Disclaimer

About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.