(CercleFinance.com) – Wall Street begins a week on a favorable note on Monday which should mark the real kick-off of the results season, buoyed by the hope of possible good surprises.
At the end of the morning, the Dow Jones rose 1.1% to 34,058.5 points, while the Nasdaq Composite gained 1.1% to 13,549.1 points.
After the American banks were out of action last Friday, the results season will get tough in the coming days and monopolize investors’ attention.
The most optimistic hope that better than expected profits will revive New York indices which have tended to stagnate since the beginning of the summer.
Overall, earnings for the companies that make up the S&P 500 are expected to have rebounded 0.4% in the third quarter, according to data compiled from FactSet.
This would be the first quarter of profit growth after three consecutive quarters of profit contraction.
But recent events in the Middle East risk making the results season unpredictable, even fraught with threats, against a backdrop of rising oil prices.
These publications will also be of interest in determining the impact on business performance of the slowdown in consumption, the rise in interest rates and the strength of the dollar.
On the energy market, the barrel of light Texan crude (WTI) consolidated by 0.4% to 87.3 dollars after its sudden rise of 6% last week at the end of a weekend marked by a absence of escalation in the Middle East.
On the bond side, the week opens with a consolidation with a gain of four points towards 4.70% for the yield on ten-year Treasuries, which erases Friday’s gains.
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