NEW YORK - Wall Street's main indexes closed higher on Monday as investors bet on some of the market's most high-profile stocks ahead of earnings reports while they weighed progress in US government stimulus efforts against rising US Covid-19 cases.
"When all six of them are higher they'll take markets with them," said Augustine, adding that with the exception of Facebook the so-called FAANG plus M stocks due to report have"a low bar to step over to beat earnings estimates." US Senate Republicans raced to complete details of a $1 trillion coronavirus aid proposal before enhanced unemployment benefits expire on Friday. The aid proposal, which could involve a reduction in emergency federal weekly unemployment benefits from $600 to $200, would then need to be negotiated with Democrats.
Trillions of dollars in fiscal and monetary stimulus have been pivotal pushing the S&P 500 closer to its February record high. It ended Monday's session 4.3% below the record. Investors kept their eye on earnings, with 189 S&P 500 companies scheduled to report results this week. About 80% of the 130 S&P 500 firms that have reported so far have beaten a low bar of earnings estimates, according to IBES Refinitiv data.