Stocks opened higher Monday and stayed that way through the close as investors looked ahead to a busy week on Wall Street – one that includes the next Fed meeting and Apple (AAPL, +1.2%) earnings.
Today, a solid reaction to earnings for one blue chip stock helped the Dow Jones Industrial Average outpace its peers even as the two other main indexes scored notable wins of their own.
Looking at the numbers, the Dow rallied 1.6% to 32,928 thanks to impressive gains for several stocks. While athletic apparel and footwear retailer Nike (NKE) was the best Dow Jones stock Monday with its 3.9% pop, fast food giant McDonald's (MCD) was near the top of the leaderboard with its 1.7% advance.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Boosting MCD was the company's third-quarter earnings report, which came in higher than expected thanks to menu price increases. Same-store-sales growth was also higher than analysts were anticipating.
Argus Research analyst John Staszak reiterated a Buy rating on MCD stock after earnings. The analyst expects the company to navigate a soft economy better than its peers due to its buying power and financial strength. "In the current economic environment, we also think that more consumers will choose McDonald’s value menus over the more expensive fare offered by full-service restaurants," Staszak says.
Meanwhile, after closing last week in correction territory, both the S&P 500 (+1.2% at 4,166) and the Nasdaq Composite (+1.2% at 12,789) carved out impressive gains today.
Fed meeting, jobs data on tap
This week will give investors plenty to consider. In addition to the Federal Reserve unveiling its latest monetary policy decision mid-afternoon Wednesday, the October jobs report will be released Friday morning. The central bank is widely expected to keep interest rates unchanged and reiterate its data-dependent approach, which makes the monthly jobs report a key event.
Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company, "will be monitoring the labor force participation rate to see if the recent rise in new entrants joining the workforce is continuing. A rise in labor force participation could help ease the current elevated wage pressures."
Apple earnings land after Thursday's close
Additionally, Apple headlines a jam-packed earnings calendar, with the tech giant scheduled to report its quarterly results after Thursday's close. "Investors need to see a clearer growth pattern emerge before excitement can be unleashed where Apple's concerned," says Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. While iPhone sales are likely to remain muted, the services segment is one area that is seeing continued growth, she notes.
"This helps underpin profits because margins in software are more attractive than in manufacturing physical goods," Lund-Yates adds. "The crucial part to all of this will be any hint on the outlook as we head into Christmas – it's this trajectory that has the ability to move markets."
Spirit Realty soars on buyout news
Spirit Realty (SRC) is another company slated to report earnings Thursday. The real estate stock soared 7.9% today on news it will be acquired by fellow real estate investment trust (REIT) Realty Income (O, -5.7%) in an all-stock deal valued at $9.3 billion. The deal is expected to close in the first quarter of 2024.
In other M&A news, healthcare REITs Healthpeak Properties (PEAK, -2.7%) and Physicians Realty (DOC, -0.5%) have agreed to combine in an all-stock deal valued at $21 billion. The merger is expected to be completed in the first half of next year, and the combined company will operate as Healthpeak Properties and trade under the ticker symbol "DOC" on the New York Stock Exchange.
Related content
- When Is the Next CPI Report?
- UAW Strike: Tentative Deals Reached With Detroit's Big Three
- I-Bonds: Pros and Cons of Investing
-
Colorado Sending Billions in TABOR RefundsState Tax Are you receiving a TABOR refund with your 2025 Colorado state income tax filing? Don’t miss the deadline.
-
How a Financial Adviser Can Help You Sleep at NightWhen it comes to your money and planning for your retirement, legacy and more, you might need a professional to help you stay on top of it all.
-
Stock Market Today: Nasdaq Hits New High Ahead of Alphabet EarningsThe Google parent is one of several mega caps reporting earnings this week, with results due out after Tuesday's close.
-
McDonald's Stock Stabilizes After Earnings. Is It Time to Buy?McDonald's stock is moving cautiously higher Tuesday after the fast-food chain beat Q3 expectations, but E. coli concerns remain.
-
Stock Market Today: Stocks Renew Rally Ahead of Mag 7 EarningsThe Dow Jones led the major indexes higher on the strength of old-school industrial stalwart 3M.
-
Stock Market Today: Nasdaq Gains Ahead of Mega-Cap EarningsThe S&P 500 and the Dow Jones Industrial Average slipped as McDonald's continued to slide.
-
Apple Stock Gets Downgraded to Sell Ahead of Earnings: Should Investors Be Worried?KeyBanc cut Apple stock's rating to the equivalent of a Sell last week on concerns over iPhone 16 sales. Here's what that means.
-
Stock Market Today: S&P 500, Nasdaq Jump After Tesla EarningsThe Dow Jones Industrial Average, on the other hand, closed lower on IBM's disappointing quarter.
-
Stock Market Today: Mixed Earnings, Election Worries Weigh on Equities
A mixed batch of corporate reports and rising election anxiety led to another down day for stocks.
-
McDonald's E. Coli Outbreak Sends Stock to the Bottom of the DowMcDonald's stock is slumping Wednesday after the CDC said an E. coli outbreak is linked to the restaurant's Quarter Pounders. Here's what you need to know.
