Dow up 600 points as focus turns to earnings after wild week for markets

what drives the market

Financial market sentiment improved on Monday as a result of better-than-expected earnings from Bank of America Corporation BAC.
+6.29%,
As well as Britain’s development under the new Chancellor of the Exchequer, Jeremy Hunt.

Hunt, the new Treasury Secretary, has announced a £45bn ($45bn) tax cut that has been accused of sparking global market volatility and fueling fears of a wider collapse of the global financial system. $51 billion) was abandoned. This led to a significant drop in yields on 30-year gold and silver BX: TMBMKGB-30Y, the equivalent of UK government bonds, dropping 48 basis points to 4.37%.

2- TMUBMUSD02Y,
4.443%
10 year government bond yield TMUBMUSD10Y,
3.997%
It fell in line with UK interest rates.

look: UK PM scraps almost all major tax cuts from mini-budget, cuts energy aid

“There’s a combination of things that give investors some comfort in terms of what’s going on,” said Jon Maier, chief investment officer at New York-based Global X ETF. The other is U.S. corporate earnings, “not as bad as expected,” he said by phone.

Earnings season is set to pick up momentum after Friday’s round of earnings from major Wall Street banks. Group Inc. GS will be reported on Tuesday.

In the only major U.S. economic release on Monday, the New York Fed’s Empire State manufacturing index fell 7.6 points to -9.1 in October, compared with expectations of -5, marking its third consecutive negative reading. have become.

Meanwhile, last week’s volatile activity, especially Thursday’s historic intraday reversal in the Dow Jones Industrial Average, has left analysts pondering whether the stock is exhibiting behavior associated with a market bottom.

“One way to tell if the market is overstretched is if the negative news has failed to sink the stock market further. is a deep pool,” Sebastian Gurry, senior macro strategist at Nordea Asset Management, said in a note.

“What we have seen is likely a reduction in extremely bearish positioning. This is an encouraging sign, but it is not yet a new dawn.

Featured Company

• Bank of America Equity BAC,
  +6.29%
  It rose 5.7% after the bank beat Wall Street’s third-quarter earnings, earnings and net interest income expectations.

• Shares of Dow constituent Goldman Sachs GS,
  +2.03%
  The Wall Street Journal says the investment banking giant plans to consolidate its core investment banking and trading operations into one unit, and wealth and wealth management into another unit. After that, it went up 2.2%.

• Rupert Murdoch is Fox Corporation
  Foxa,
  -9.24%

  fox,
  -7.87%
  When News Corp,
  NWSA,
  +4.29%

  NWS,
  +3.20%
  The two wings of his media empire have been split for nearly a decade, The Wall Street Journal reported. News Corp. is the parent company of Dow Jones, publisher of The Wall Street Journal and MarketWatch, and other assets including HarperCollins Publishers and British and Australian news outlets. News Corp’s Class A shares rose 4.2%, while Fox’s Class A shares fell 8.9%.

— Steve Goldstein contributed to this article.