Stock market news today: US stocks rise as eyes turn to big week of events

US stocks rose on Monday after a sharp sell-off as investors awaited a great week of eventswith the Federal Reserve's latest policy decision and Apple's earnings (AAPL) in the calendar.

The S&P 500 benchmark index (^GSPC) rose approximately 0.7%, after officially entering correctional territory on Friday, while the Dow Jones Industrial Average (^DJI) jumped about 0.8%, or more than 250 points, after losing more than 350 points in its last closing.

The tech-heavy Nasdaq Composite (^IXIC) It was also up about 0.8% after a downbeat week driven by mixed earnings results from big tech companies.

Eyes are now on the US central bank and Apple, the largest company in the S&P 500, to lift spirits after a difficult few months for the stock market. The US employment report for October, due to be released on Friday, will also be closely watched.

A jump at the Fed preferred inflation metric has high expectations that policy makers adhere to their ""higher for longer" stance and keep interest rates stable in its decision on Wednesday.

Apple will release its quarterly results on Thursday after the market closes, focusing on any impact from China's measures to limit the use of iPhones.

Meanwhile, investors are weighing what McDonald's profits on Monday they say about the American consumer, who has proven to be resilient in the face of high borrowing costs. The burger giant beat earnings estimates for the third quarter as higher menu prices fueled sales growth.

In commodities, benchmark oil prices fell as Israel's measured start to its Gaza campaign eased fears that the conflict will escalate across the Middle East, seen as a boost for investors. dive back into the markets. West Texas Intermediate Futures (CL=F) lost 1.8% to reach $84.01 a barrel, while Brent futures (BZ=F) lost 1.5% to trade around $87.86 a barrel.

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GM reaches tentative agreement with UAW

General Motors (G.M.) has reached a tentative agreement with the United Auto Workers (UAW) union, joining rivals Ford (F) and Stellantis (STLA).

The news, once confirmed, effectively puts an end to the painful labor dispute that has completely paralyzed the automotive industry. Shares of the Big Three fell in early afternoon trading Monday: Ford fell more than 2%, while GM and Stellantis traded flat.

As Pras Subramanian of Yahoo Finance reports:

Details of GM's tentative deal were not available, but Bloomberg Reports The details of the deal mirror those agreed to by Ford and Stellantis. In summary, Ford and Stellantis agreed to pay union workers 25% wage increases, reinstate COLA (cost-of-living adjustment) benefits, institute a 3-year pay progression up to the maximum wage, convert temporary employees to full-time workers. full time and ending salary levels. among other benefits. GM declined to comment on the deal at this time given the sensitive nature of the discussions.

GM's talks with the UAW reportedly lasted longer than those of its rivals due to pension payment obligations and the conversion of temporary workers to full-time workers, although those issues appear to have been resolved. The UAW escalated its strikes against GM over the weekend, calling a strike at the GM plant in Spring Hill, Tennessee, where the Cadillac XT5, Cadillac XT6, Cadillac Lyriq EV and GMC Acadia are assembled, as well as engines for various Chevy, GMC and Cadillac trucks.

Since a deal with GM has likely been signed, the next steps will include the UAW's national GM committee voting to approve the deal, before putting the deal to a vote of the entire membership.

President Biden praised the agreement. "I think it's great," Biden said Monday when asked about the deal.

Read more here.
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Oppenheimer lowers S&P 500 year-end target to 4,400

The S&P 500's recent nosedive has stock market bulls nervous about whether stocks will be able to regain their 2023 mojo.

Oppenheimer's chief investment strategist, John Stoltzfus, lowered his price target for the S&P 500 to 4,900 from 4,400. Stoltzfus had maintained the highest year-end target for the S&P 500 among strategists tracked by Yahoo Finance.

Stoltzfus noted that Oppenheimer remains "constructive" on stocks, but as rising yields and rising geopolitical concerns have weighed on stocks, this new target "looks more realistic and achievable at this time."

On August 1, Stoltzfus raised his year-end price target to 4,900 from 4,400, citing a stronger-than-expected US economy. That narrative has largely played out as the labor market still remains tight and the United States recently posted its best annualized growth for a quarter in nearly two years.

But the end of July also turned out to be the highest point for the stock so far this year. Since August 1, the S&P 500 and Nasdaq Composite have retreated more than 10% from their 2023 highs and officially entered correction territory.

"Ironically, even as the resilience of economic and corporate earnings has persisted since late July, market sentiment soured on stocks as market-quoted interest rates rose and geopolitical risk increased," he wrote. Stoltzfus in a research note on Monday. "This irony suggests, at least in part, that much of the recent stock decline reflects a market tantrum by highly leveraged market players grappling with the new end-of-free-money paradigm orchestrated by the Federal Reserve, in which bond issuers (and other borrowers) now pay for the privilege of borrowing and bond buyers and lenders get something in return in the form of a coupon with a realistic and fair yield."

Stoltzfus noted that the recent move lower in stocks is not out of the ordinary for a Fed rate hike cycle and that the turbulence caused by rising tensions in the Middle East is also not unusual. He believes valuations are approaching attractive levels again and, for now, the story of a strong economy remains a tailwind for stocks.
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McDonald's rises after surpassing its results

McDonald's (DCM) shares rose about 1% on Monday after the fast-food giant reported third-quarter earnings that beat expectations as higher menu prices fueled sales growth.

As Yahoo Finance's Brooke DiPalma reports:

Overall system-wide sales, which include sales at company-owned and franchised restaurants, increased 11%. Global same-store sales rose 8.8%, higher than analyst estimates of 7.79%, according to Bloomberg consensus data.

Revenue rose 14% year over year to $6.69 billion, ahead of estimates of $6.52 billion. Adjusted earnings per share were 3.19, up 19% from last year.

CEO and president Chris Kempczinski said in the release that the results demonstrate the company's "strength as an industry leader."

"The macroeconomic environment is developing in line with our expectations for the year and we continue to provide convenience and value to our customers," he said.

McDonald's shares are down nearly 3% so far this year, behind Restaurant Brands International (QSR), which is up almost 2% so far this year, but ahead of YUM! Brands (Hmm) shares, which are down almost 7%.

Read more here.
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Stocks open higher

Stocks opened higher on Monday, with all three major indexes posting gains to kick off a busy trading week.

The S&P 500 (^GSPC) jumped about 0.8% after officially entering correctional territory on Friday. The Dow Jones Industrial Average (^DJI) also rose 0.8%, or more than 250 points, after losing more than 350 points at its latest close, while the tech-heavy Nasdaq Composite (^IXIC) it shot up almost 0.9%.
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Stock futures point higher after sharp sell-off

Major US stock indicators were on track to post opening gains after the S&P 500 officially entered correction territory last week. Investors now hope that the Federal Reserve's decision and Apple's earnings later in the week will provide a boost.

Futures on the Dow Jones Industrial Average (^DJI) rose 0.66%, or 212 points, while the S&P 500 (^GSPC) futures rose 0.64%. Contracts on the high-tech Nasdaq 100 (^NDX) rose 0.65%.