U.S. stocks rose on Monday as Wall Street kicked off a week packed with high-profile earnings and a delayed release 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%, with shares posting weekly gains.
Wall Street was assessing the fallout from a major AWS outage at Amazon (AMZN) early Monday morning, the ripple effect of which took platforms like Robinhood (HOOD) offline. The cloud giant supports services from a number of major companies, with users reporting outages 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 focus on earnings season, which accelerates this week. Hopes are high, with reports from Tesla (TSLA), Intel (INTC), Netflix (NFLX), and Coca-Cola (KO) topping the highlights of a busy list.
On Monday, eyes will be on Zions Bancorp’s (ZION) third-quarter results due after the bell. The regional lender’s disclosure of bad loans linked to fraud last week spooked investors with concerns about U.S. credit quality.
A lull on the trade war front also provided comfort. Treasury Secretary Scott Bessent said relations with Beijing have “de-escalated” and said talks between the United States and China will 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 raised optimism that Trump’s promised additional 100% tariff on Chinese imports set for Nov. 1 might not come to pass.
Meanwhile, the US government shutdown has entered its third week, and Democrats and Republicans remain at odds over federal health care subsidies. Economists warn that a prolonged standoff could hurt GDP growth in the short term, although most believe any slowdown is likely temporary.
The federal strike has suddenly stopped the key inflation and employment data for the Federal Reserve’s decision making. But the Bureau of Labor Statistics will release the consumer price index for September on Friday, delayed from last week. The data could prove critical to the Fed’s rate path as policymakers enter a period of calm ahead of their two-day meeting next week.
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Stocks rise at open, oil falls
Shares rose at the open after a major AWS outage caused disruptions to numerous businesses on Monday morning.
The Dow Jones Industrial Average (^DJI) rose 0.4%, while the S&P 500 (^GSPC) and the tech-heavy 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 decreased 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 per barrel.
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Tesla and Netflix to report earnings as US-China trade fight becomes ‘unsustainable’: what to watch this week
Here’s what’s ahead as markets grapple with the U.S. federal shutdown, a looming oil glut and “cockroach” fears about credit quality in the economy.
Yahoo Finance’s Jake Conley reports:
Read more here.
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Beyond Meat Stock Soars 60% Amid Potential Short-Term Short squeeze
Shares of Beyond Meat (BYND) rose more than 60% in premarket trading on Monday, recouping some of the big losses it suffered this year. However, the stock is still down more than 82% so far this year.
The plant-based meat maker is undergoing a debt restructuring, which last week led traders to dump its shares. At Friday’s close, shares were trading at just $0.64 each. With Monday’s move, shares are on track to open above $1 again.
The absence of a major catalyst on Monday and increased trading volume suggest the stock may be experiencing a brief squeeze as bearish investors are forced to buy back shares to limit losses.
Beyond Meat has fallen on hard times since its initial public offering in 2019, a year in which shares were trading as high as $240 per share. On October 13, Beyond Meat announced a debt swap deal that would issue up to 326 million shares to reduce its debt load by about $800 million.
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‘Top on my worry list’: Why the stock market boom could become the biggest risk to America
Yahoo Finance’s Allie Canal reports:
Read more here.
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Good day. This is what is happening today.
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Premarket Trend Tickers: Tesla, Robinhood, and MP Materials
Here’s a look at some of the top trending stocks in pre-market trade:
tesla (TSLA) Shares were up 1% before the bell on Monday. The electric vehicle maker will report its third-quarter earnings on Wednesday. Barclays (BCS) also reiterated the stock as equal weight and raised its price target to $350 (from $275).
Robinhood (HOOD) Shares rose 3% in premarket trading. Recently, the trading platform raised its price target from $130 to $170 and reiterated an “outperform” rating from analysts at Citizen JMP.
MP Materials (deputy) Shares were up 3% before the bell on Monday. The rare earth materials company has seen a lot of action in recent weeks after China restricted the export of rare earths, forcing the United States and other countries to diversify their supply chain. President Trump confirmed on Sunday that rare earths are a key talking point for trade talks 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 knock-on effect, bringing down platforms like Coinbase (COIN) and Robinhood (HOOD) in a widespread outage that affected several major websites.
Those affected range from United Airlines (UAL) to T-Mobile (TMUS) and Reddit (RDDT), according to reports from Downdetector users. It also downgraded services for government agencies and artificial intelligence companies. according to Bloomberg.
Amazon Web Services said around 6 a.m. ET that its cloud service had recovered significantly after the outage, which began having an impact about four hours earlier, due to customer complaints.
The cloud provider, whose services underpin much of the web, said an issue on the US East Coast was behind the problems.
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Gold falls as US-China tensions ease
Bloomberg reports:
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