Stocks Climb as Wall Street Gears up for Earnings: Markets Wrap
(Bloomberg) — Wall Street traders betting on a another solid earnings season sent stocks higher, with the market also gaining as an oil rally eased.
The S&P 500 halted back-to-back losses. Most industries rose, but chipmakers whipsawed. Brent crude fluctuated around $104. Still-elevated energy costs lifted bond yields on concerns about potential inflationary pressures that could make the Federal Reserve raise rates again this year. The dollar was set for its longest weekly advance since early 2025.
Corporate America is now navigating one of the strongest profit cycles in recent history, with the S&P 500 posting seven consecutive quarters of double-digit earnings growth. And investors want to see the momentum continuing.
Geopolitical clashes, rising yields and AI investment jitters have all contributed to trader anxiety. But earnings expectations remain robust, and the eventual resolution of the November election uncertainty could provide another catalyst for equities, according to Bob Edwards at Edwards Asset Management.
“I believe corporate earnings remain remarkably strong,” he said.
Analysts expect a roughly 25% increase in third-quarter S&P 500 profits from a year earlier, according to data compiled by Bloomberg Intelligence.
“Earnings and AI investment remain powerful supports for growth stocks, but high long-term rates, energy-driven inflation risk and narrow breadth leave less room for disappointment,” said Mark Hackett at Nationwide. “With valuations, sentiment and positioning having reset following a prolonged sideways move, there are reasons for optimism.”
Wall Street’s biggest banks are expected to unveil a quarterly stock-trading haul of nearly $19 billion when the firms report earnings next week.
Goldman Sachs Group Inc., which reports Tuesday, is expected to lead the pack with stock-trading revenue of $5.1 billion, followed by Morgan Stanley with $4.9 billion, according to analyst estimates compiled by Bloomberg as of the close of New York markets Thursday. Analysts are forecasting a $4.5 billion haul from JPMorgan Chase & Co. and $2.6 billion of revenue from Bank of America Corp.’s equity traders.
On the economic front, US consumer sentiment fell in early October and views of current economic conditions hit an all-time low as inflation weighed on households.
Corporate Highlights:
OpenAI is expecting to reach or exceed $70 billion in annualized revenue by the end of the year, according to people familiar with the matter, driven largely by growth in its enterprise business. SpaceX is closing in on a crucial swath of spectrum needed to turn Elon Musk’s rocket, satellite and AI company into a “major mobile carrier,” setting the stage for a clash with stalwarts like T-Mobile US Inc., Verizon Communications Inc. and AT&T Inc. Apple Inc. fell after a report that the company cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand. Lumentum Holdings Inc.’s optical components are “completely sold out” through early 2029 on demand from tech companies clamoring for faster AI data centers, according to its chief executive officer. Delta Air Lines Inc. reduced its full-year earnings outlook as jet fuel prices remain elevated, signaling mounting pressure on an airline industry whose smaller players are even less equipped to weather spiraling costs. Humana Inc. jumped as the company improved its performance on crucial Medicare Advantage quality ratings that will boost future revenue. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.4% as of 11:03 a.m. New York time The Nasdaq 100 rose 0.4% The Dow Jones Industrial Average rose 0.4% The Stoxx Europe 600 rose 1.1% The MSCI World Index rose 0.5% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.1% to $1.1195 The British pound was little changed at $1.3226 The Japanese yen fell 0.3% to 158.41 per dollar Cryptocurrencies
Bitcoin rose 1.4% to $82,900.04 Ether rose 0.6% to $2,488.65 Bonds
The yield on 10-year Treasuries advanced four basis points to 5.27% Germany’s 10-year yield was little changed at 3.49% Britain’s 10-year yield declined three basis points to 5.45% Commodities
West Texas Intermediate crude rose 0.4% to $91.88 a barrel Spot gold rose 1.2% to $4,183.57 an ounce ©2026 Bloomberg L.P.
