This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Edge Higher as Investors Await JPMorgan, Intel

NEW YORK (TheStreet) -- Coming off their best week of the year, U.S. stocks treaded water on Monday as investors look for a clear indication about the direction of corporate earnings.

Stock displayed little energy to start the week, looking ahead to reports from JPMorgan (JPM - Get Report) and Intel (INTC - Get Report) , scheduled for Tuesday, that are likely to offer signals about the strength of the U.S. economic recovery. The S&P 500 was up 0.12%, the Dow Jones Industrial Average added 0.28%, and the Nasdaq gained 0.17%. Benchmark indexes dipped above and below the flat line over the session.

Analysts expect S&P 500 companies to report a 4.8% decline in third-quarter earnings and 3.6% drop in revenue, according to Thomson Reuters. Continued strength in the U.S. dollar and crude oil near 2015 lows are expected to have been the main challenge to growth over the three-month period.

"Absent an unexpected improvement in earnings, or at least more positive guidance for the fourth quarter, the rally in U.S. equities is likely to be contained," Russ Koesterich, managing director and global chief investment strategist at BlackRock, wrote in a note.

Must Read: 5 Big Stocks to Trade for Big Gains

Big banks were closed for the Columbus Day holiday on Monday but they will get their chance to reveal their third-quarter performance this week with many expected to have suffered from challenging trading conditions: JPMorgan will report on Tuesday; Bank of America (BAC - Get Report) and Wells Fargo (WFC - Get Report) are due for Wednesday; and Citigroup (C - Get Report) and Goldman Sachs (GS) are slated for Thursday.

It's a big week for non-financials, too. Johnson & Johnson (JNJ) , eBay (EBAY) and Intel will report on Tuesday; Delta (DAL) and Netflix (NFLX) are due on Wednesday; Mattel (MAT) will report on Thursday; and General Electric (GE) will round out the week on Friday.

Crude oil pulled back from an 11-week high on Monday, closing 5.1% lower at $47.10 a barrel. The energy industry had been on a roll last week after a sharper-than-expected drop in crude inventories and crude oil's brief rally above $50 a barrel inspired hope the sharp drop in commodities had found its bottom. The Energy Select Sector SPDR ETF (XLE) had surged 8% over the past week, but dropped more than 1% on Monday.

Among the worst performers in the energy sector, Chevron (CVX) dropped 0.9%, Schlumberger (SLB) slid 1.9%, ConocoPhillips (COP) fell 1.5% and BP (BP) slipped 1.7%.

In individual stock news, Twitter (TWTR) fell nearly 7% on reports it is set to announce company-wide layoffs this week which will likely affect all departments, according to Re/code. Twitter has around 4,200 employees as of the end of last quarter, more than double the number it had when it floated in 2013.

Eli Lilly (LLY) slumped more than 7% on Monday after the drugmaker reported it is shutting down clinical development of a cholesterol-lowering pill. Hopes were high the drug would be the biopharma's next multi-billion dollar product. Study analysis showed the drug was unlikely to reduce the number of deaths, heart attacks or strokes in patients under treatment.

EMC (EMC) shares were up more than 1% after agreeing to be acquired by Dell for more than $53 billion. However, EMC has up to 60 days to seek bids from other potential suitors, according to the deal terms. If the EMC-Dell deal goes through, it would be the biggest tech hardware industry deal in history.

Fiat Chrysler (FCAU) shares added nearly 2% after the automaker disclosed the initial public offering of Ferrari could value the unit at around $10 billion. Fiat Chrysler will sell nearly 10% of Ferrari in the float at between $48 and $52 a share. Proceeds will be reinvested in Fiat's own turnaround plan.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $15.52 0.00%
C $51.28 0.00%
INTC $32.21 0.00%
JPM $61.72 0.00%
WFC $52.18 0.00%


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs