The S&P 500 and the Dow Jones Industrial Average are perched at record highs, while the Nasdaq Composite is on the cusp of joining its major counterparts in record territory. Unfazed by the stretched valuations, CNBC Mad Money host Jim Cramer on Monday raised the specter of further upside.
Don’t Miss:
- A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing. - Your biggest returns may not come from the stock market. Invest the way colleges, pension funds, and the 1% do. Get started investing in commercial real estate today.
Earnings Boost: The market isn’t overbought and therefore there is room to run, Cramer said in a post. The stock picker apparently sees earnings as one of the biggest catalysts that can propel stocks higher.
The earnings flow resumes after a pause on Monday owing to the Columbus Day holiday.
JPMorgan Chase & Co. JPM kickstarted the big bank earnings on Friday with a splash. The shares ended the session up over 4% after the third-quarter results came in ahead of expectations. JPMorgan’s peer Wells Fargo & Company WFC also reported encouraging earnings.
More earnings will follow on Tuesday and notable among those reporting are:
- Bank of America Corporation BAC
- Charles Schwab Corporation SCHW
- Citigroup Inc. C
- Goldman Sachs Group, Inc. GS
- PNC Financial Services Group, Inc. PNC
- Johnson & Johnson JNJ
- UnitedHealth Group Incorporated UNH
- Walgreens Boots Alliance, Inc. WBA
- J.B. Hunt Transport Services, Inc. JBHT
- United Airlines Holdings, Inc. UAL
Data compiled by FactSet shows cumulative earnings of S&P 500 companies rising by 4.1% in the third quarter. Although a slowdown from the 11.2% growth in the second quarter, the profit growth streak will likely extend to five quarters.
Downside Risk: Cramer termed the bond market performance “horrendous,” potentially upsetting the equity market’s rhythm. “But the pesky bonds are back open tomorrow and they have been horrendous,” he said.
The bond market was closed on Monday and will reopen on Tuesday.
Trending: This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10.
This is a paid advertisement. Carefully consider the investment objectives, risks, charges and expenses of the Fundrise Flagship Fund before investing. This and other information can be found in the Fund's prospectus. Read them carefully before investing.
Bond yields have begun to tick higher, especially after the September non-farm payrolls report surprised to the upside. The upward move solidified after the consumer price inflation for September came in more than expected.
The 10-year bond yield dipped under 3.6% in mid-September but has rallied above 4% since then, as investors unwind some of their aggressive rate-cut bets.
In an interview with CNBC, Fund Strat Head of Research Tom Lee said the unseasonable market trend showed macro data has become less important. A lot of cash that has remained on the sidelines is flowing back to the market, he said, adding that the economy has remained resilient as opposed to expectations for a recession.
When asked about the days when the market came back up from steep losses in the futures market and finished solidly higher, the strategist said skeptical investors, wary of a potential recession that never materialized, have remained under-invested in stocks. Earnings have also been resilient, he added.
The SPDR S&P 500 ETF Trust SPY, an exchange-traded fund that tracks the S&P 500 Index, rose 0.82% to $584.32 on Monday, according to Benzinga Pro data, marking a record closing high.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Keep Reading:
- Interest rates are falling but you can still make high yields in real estate. Find out how.
- Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. Get started investing in commercial real estate today.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
