Traders on the floor of the NYSE, July 17, 2023.
The Dow Jones Industrial Average rose Monday as investors kicked off a week with more corporate earnings and key inflation readings.
Berkshire Hathaway climbed nearly 3%, signaling investor satisfaction with the company’s earnings report and cash stockpile. Animal health care stock Elanco rallied more than 7% after beating Wall Street expectations, while Tyson Foods slid more than 5% on an underwhelming report.
Sovos Brands, the company known for Rao’s, surged more than 25% after Campbell Soup announced it would acquire the pasta sauce maker. Campbell Soup slipped nearly 2%, bringing shares to their cheapest price in more than a year.
The moves follow a losing week on Wall Street. The Nasdaq Composite and S&P 500 slid about 2.9% and 2.3%, respectively, marking their worst weeks since March. The Dow finished the week about 1.1% lower.
Monday kicked off the latest leg of what has broadly been considered a stronger corporate earnings season than anticipated. Of the 85% of companies in the S&P 500 that have posted their quarterly results, about four-fifths have exceeded Wall Street forecasts, according to FactSet.
“Markets are back on to a risk-on mode,” said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance. “It’s been a better-than-expected earnings season, and so I think that’s why the market’s had such staying power.”
Later in the week, investors will shift focus to the release of July consumer and producer price index data. Both are closely watched given their connection to the path of inflation and the health of the economy.