U.S. Major Averages Looked Higher In Cautious Trading Ahead of Earnings Releases

Barry Adams
08 Apr, 2024
New York City

Benchmark indexes traded around the flatline in early trading on Monday, and investors remained positive ahead of the start of the earnings season. 

The S&P 500 index and the Nasdaq Composite edged slightly higher as investors awaited the start of the earnings season, with leading banks set to announce earnings. 

Last week, market indexes trimmed losses following the gains on Friday after nonfarm payrolls advanced, wages gained, and more people sought employment.

Investors weighed the positive impact of an expanding labor market on the U.S. economy, which will support higher corporate earnings despite interest rates staying higher for longer. 

However, market enthusiasm was kept in check after Treasury yields edged higher. 

This week, investors are looking ahead to the release of consumer price and producer price indexes. 

The consumer price index for March is expected to increase at annual pace of  3.4% and advance 0.35% from the previous month, according to a poll of ten economists conducted by ticker.com. 

 

U.S. Indexes and Yields

The S&P 500 index increased 0.2% to 5,212.74, and the Nasdaq Composite rose 0.3% to 16,294.02. 

The yield on 2-year Treasury notes edged higher to 4.78%, 10-year Treasury notes inched down to 4.42%, and 30-year Treasury bonds edged up to 4.54%.

WTI crude oil decreased $1.21 to $85.61 a barrel, and natural gas prices increased 8 cents to $1.82 a thermal unit.

Gold decreased by $2.95 to $2,327.49 an ounce, and silver rose 2 cents to $27.50. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.18.

 

U.S. Stock Movers

Tesla jumped 4% to $171.50 after the company's chief executive, Elon Musk, said the company is ready to release its robotaxi design on August 8. 

Oil companies traded down after crude oil prices eased more than 1% following the easing of tensions in the Middle East. 

Exxon Mobil, Chevron, Hess, and Marathon Oil declined around 0.6%. 

Popular tech stocks also drifted lower in early trading. 

Apple, Microsoft, Meta, Netflix, Amazon, Alphabet, and Amazon declined between 0.1% and 0.4%. 

Semiconductor stocks drifted downward, and Intel, AMD, Nvidia, Broadcom, and Qualcomm declined around 0.2%.