U.S. stocks rose Monday as Wall Street kicked off a busy week of high-profile earnings and delayed releases of key inflation data.
The Dow Jones Industrial Average (^DJI) rose about 0.4%, while the S&P 500 (^GSPC) rose 0.5%. The tech-heavy Nasdaq Composite (^IXIC) also gained about 0.5%, as stocks posted weekly gains.
Wall Street was weighing the fallout from a major Amazon (AMZN) AWS outage early Monday morning, the ripple effect of which took platforms like Robinhood (HOOD) offline. The cloud giant supports services for a number of major companies, and users have reported disruptions on websites ranging from United Airlines (UAL) to Reddit (RDDT). AWS operations are now returning to normal, the Amazon unit said.
Markets are also putting aside a long list of concerns to instead focus on earnings season, which shifts into high gear this week. Hopes are high, with reports from Tesla (TSLA), Intel (INTC), Netflix (NFLX) and Coca-Cola (KO) topping a busy list.
On Monday, eyes will be on Zions Bancorp’s (ZION) third-quarter results, expected after the bell. The regional lender’s disclosure of fraud-related bad loans last week spooked investors with concerns about the quality of U.S. credit.
A lull on the trade war front also brought comfort. Treasury Secretary Scott Bessent said relations with Beijing had “deescalated” and that negotiations between the United States and China were expected to resume this week in Malaysia.
On Sunday, President Trump listed the top issues for the United States – rare earths, fentanyl and soy – in a sign that the White House continues to soften its stance. That has sparked optimism that Trump’s promised additional 100% tariffs on Chinese imports, set for Nov. 1, may not come to pass.
Meanwhile, the US government shutdown has entered its third week, with Democrats and Republicans still at odds over federal health care subsidies. Economists warn that a prolonged standoff could hurt GDP growth in the short term, although most view any slowdown as likely temporary.
The federal shutdown put a damper on inflation and employment data, critical to the Federal Reserve’s decision-making process. But the Bureau of Labor Statistics is expected to release the September consumer price index on Friday, lagging behind last week. The data could prove crucial to the Fed’s rate developments as policymakers enter a period of calm ahead of their two-day meeting next week.
LIVE 9 updates
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Apple stock opens at record high as strong iPhone 17 sales boost optimism
Apple (AAPL) stock opened up more than 2.5% Monday to trade at a record high after research firm Counterpoint Research said in a note Monday that the company’s latest iPhone 17 was on track to outperform its previous model by about 14% in its first 10 days on sale.
Apple is lagging among its big tech peers, up less than 3% year to date, compared with a nearly 14% gain for the S&P 500.
The company launched the latest version of its iPhone late last month, unveiling the iPhone 17 with a new camera and display, as well as the iPhone 17 Air, a new lightweight and ultra-thin version of its flagship device.
In September, Yahoo Finance’s Dan Howley said the new lineup was Apple’s most exciting iPhone rollout in nearly a decade.
According to Reuters, Counterpoint’s work also showed that iPhone 17 sales in China nearly doubled iPhone 16 sales during the same period.
In a note to clients last week, Bank of America’s Wamsi Mohan noted that delivery times for the latest iPhone models remained high compared to previous years, indicating strong demand for the new devices.
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Stocks rise at open, oil falls
Stocks rose at the open after a major AWS outage created disruptions at many businesses Monday morning.
The Dow Jones Industrial Average (^DJI) rose 0.4%, while the tech-heavy S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) gained 0.5%.
Meanwhile, the 10-year Treasury yield (^TNX) remained below 4% after falling 2 basis points. The 30-year yield (^TYX) also fell 2 basis points to 4.57%.
Gold futures (GC=F) rose 2% to $4,334 an ounce. Crude oil futures (CL=F) fell 1.5% to $56 a barrel.
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Tesla and Netflix to report results as US-China trade war becomes ‘unsustainable’: what to watch this week
Here’s what lies ahead as markets grapple with the U.S. federal government shutdown, the threat of an oil glut and “cockroach” fears about credit quality in the economy.
Jake Conley of Yahoo Finance reports:
Learn more here.
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Beyond Meat Stock Soars 60% Amid Possible Short-Term Squeeze
Beyond Meat (BYND) stock jumped more than 60% in pre-market trading Monday, recouping some of the heavy losses it suffered this year. However, shares remain down more than 82% year to date.
The plant-based meat maker is undergoing a debt restructuring, leading traders to dump their shares last week. As of Friday’s close, shares were trading at just $0.64 apiece. With Monday’s move, stocks are on track to reopen above $1.
The lack of a major catalyst on Monday and increased trading volume suggest the stock could experience a short squeeze, with bearish investors forced to buy back shares to limit losses.
Beyond Meat has fallen on hard times since its IPO in 2019, a year when the stock traded as high as $240 per share. On October 13, Beyond Meat announced a debt exchange agreement that would issue up to 326 million shares to reduce its debt load by approximately $800 million.
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‘Top of my worry list’: Why the stock market boom could become America’s biggest risk
Allie Canal of Yahoo Finance reports:
Learn more here.
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Good morning. Here’s what’s happening today.
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Pre-market trend tickers: Tesla, Robinhood and MP Materials
Here’s a look at some of the top trending stocks in pre-market trading:
Tesla (TSLA) The stock rose 1% before the bell on Monday. The electric vehicle maker is expected to report third-quarter results on Wednesday. Barclays (BCS) also relisted the stock as Equal Weight and raised its price target to $350 (from $275).
Robin Hood (HOOD) the stock rose 3% in premarket trading. The trading platform recently had its price target increased from $130 to $170 and reiterated the “Outperform” rating from Citizen JMP analysts.
MP materials (MP) The stock was up 3% before the bell on Monday. The rare earth materials company has seen a lot of action in recent weeks after China restricted exports of rare earths, forcing the United States and other countries to diversify their supply chains. President Trump confirmed on Sunday that rare earths are a key topic of discussion in trade negotiations between the United States and China, which will take place in Malaysia this week.
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Huge Amazon Web Services Outage Takes Major Websites Offline
A major outage at Amazon Web Services on Monday morning had a huge ripple effect, bringing down platforms like Coinbase (COIN) and Robinhood (HOOD) in a widespread disruption that affected several major websites.
The victims ranged from United Airlines (UAL) to T-Mobile (TMUS) and Reddit (RDDT), according to reports from Downdetector users. It also degraded services for government agencies and AI companies. by Bloomberg.
Amazon Web Services said around 6 a.m. ET that its cloud service had recovered significantly from the disruption, which began having an impact about four hours earlier following customer complaints.
The cloud provider, whose services support much of the web, said a problem on the US east coast was causing the problems.
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Gold Falls as US-China Tensions Ease
Bloomberg reports:
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