US stocks gain ahead of data, bank earnings

Wall Street stocks rose early Monday, extending last week's trend ahead of economic data and the start of third-quarter corporate earnings seasons.

File photo: Agencies

About 25 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent at 28,720.13.

The broad-based S&P 500 gained 0.7 percent to 3,502.25, while the tech-rich Nasdaq Composite Index jumped 1.1 percent to 11,712.34.

Wall Street analysts are getting ready for another quarter of lower earnings in the wake of the coronavirus restrictions, with analysts projecting a nearly 23 percent fall in earnings per-share from S&P 500 companies, according to CFRA Research.

But the stock market still feels broad confidence that Congress will continue to support the US economy with fiscal spending. While enacting a package looks challenging before the November 3 election, one could come soon after, analysts say.

"The narrative coming out of Washington on the next stimulus package is 100 percent 'when and how much,' not 'if,'" said a note from DataTrek Research.

"Fiscal stimulus (past and, presumably, future) is giving investors much greater certainty on near-term corporate earnings than is common in recessions."

This week's calendar includes earnings reports from JPMorgan Chase and other large banks, as well as Delta Air Lines and United Airlines. There will also be reports on consumer prices and retail sales.