Major US stock indices rose slightly on Monday, as losses in the financial sector were offset by a rise in the shares of energy companies.
Investors are also preparing for the start of the corporate reporting season for the first quarter. JPMorgan (JPM), Citigroup (C) and Wells Fargo (WFC) plan to report on their profits on Thursday and may shed some light on the results of the banking industry in the US against the backdrop of the rally of financial shares after the election of President Trump. Investors will closely monitor the results to justify high market valuations after the rally caused by Trump’s victory, which promised to implement policies to stimulate economic growth. According to analysts’ estimates, for the first three months of this year, the profits of S & P 500 companies grew by 10.1%, which is the highest level since the 4th quarter of 2014. Now the P / E ratio (price / earnings) for the S & P 500 index is 17.4 versus the long-term 15.
The cost of oil grew by more than 1%, which was due to a new stoppage of production at the largest oil fields in Libya, the tension around Syria after a missile strike and signs that OPEC’s efforts to limit oil production help reduce the excess supply.
Components of the DOW index finished trading mixed (12 in positive territory, 18 in negative territory). Merck & Co., Inc. fell more than others. (MRK, -0.81%). Caterpillar Inc. was the growth leader. (CAT, + 1.73%).
Almost all sectors of the S & P index recorded an increase. The leader of growth was the sector of basic materials (+ 0.6%). The technological sector fell most (-0.1%).
DJIA + 0.01% 20.657.74 +1.64
Nasdaq + 0.05% 5,880.93 +3.12
S & P + 0.07% 2.357.14 +1.60