Stocks were mixed on Monday as market participants looked ahead towards another week of major earnings reports. The Dow Jones Industrial Average dipped over 50 points, while the S&P 500 Index and Nasdaq Composite added about 0.4% and 0.6%, respectively.
Here's how the market settled on Monday:
S&P 500 Index (NYSE: SPY): +0.39% or +23.00 points to 5,893.62
Dow Jones Industrial Average (NYSE: DIA): -0.13% or -55.39 points to 43,389.60
Nasdaq Composite Index (NASDAQ: QQQ): +0.60% or +111.68 points to 18,791.81
In the News:
Nvidia's (NASDAQ: NVDA) shares dipped lower on Monday after The Information reported that the chipmaker's popular Blackwell graphics processing units overheat when connected together in server racks designed to hold up to 72 chips. The report added that Nvidia has asked suppliers to change the design of racks to resolve overheating problems.
Spirit Airlines (NYSE: SAVE) filed for Chapter 11 bankruptcy protection on Monday, making it the first major airline to do so in more than a decade after the budget airline's proposed $3.8 billion merger with JetBlue Airways (NASDAQ: JBLU) failed earlier this year.
Spirit said it had pre-arranged a deal with its bondholders to restructure its debts and raise funds to operate throughout the bankruptcy. The airline listed its assets and liabilities between $1 billion and $10 billion in the filing and expects to continue operations.
"The most important thing to know is that you can continue to book and fly now and in the future," CEO Ted Christie said in an open letter to customers published Monday.
Tesla (NASDAQ: TSLA) shares rose higher on Monday following a Bloomberg News report that President-elect Donald Trump's administration plans to make federal self-driving vehicle regulations a top priority for the U.S. Transport Department.
Bernstein analyst Alexia Howard wrote in a Monday note that food and beverage companies could be impacted is Robert F. Kennedy Jr. becomes the next U.S. Health and Human Services secretary.
"Mr. Kennedy expressed an interest in reducing the use of synthetic dyes (such as Red 40, Yellow 5, and Blue 1), which are already restricted in use within Europe," Howard wrote in a note to clients.
"Food and beverage companies such as PepsiCo (NASDAQ: PEP) (Doritos, Cheetos, Cap'n Crunch, etc.), WK Kellogg (NYSE: K) (Froot Loops), General Mills (NYSE: GIS) (Lucky Charms), Kraft Heinz (NASDAQ: KHC) (Kool-Aid and Jell-O) and to a lesser extent Hershey (NYSE: HSY) (Jolly Ranchers) us dyes within their products," she added. "Synthetic dyes are also commonly used within beverage products."
CVS Health (NYSE: CVS) announced Monday it has reached a deal with activist investor Glenview Capital on Monday, adding four board seats -- Glenview CEO Larry Robbins, Leslie Norwalk, Guy Sansone and Doug Schulman will join the company's board, effective immediately.
Separately, Wells Fargo analyst Stephen Baxter raised CVS Health's rating to Overweight from Equal Weight on Monday and increased the firm's price target on the consumer health chain to imply a nearly 24% upside from its Friday close, citing that CVS could benefit from President-elect Donald Trump's plans to cut regulatory policies.
"We expect a better reimbursement environment under Republicans than we have seen during the Biden Administration," Baxter wrote in a note to clients. "Rates that more closely resemble underlying trend and an absence of new headwinds would be a good start."
Looking Ahead:
Bank of America analyst Savita Subramanian raised the firm's 2025 S&P 500 Index price target to 6,000 in a late Friday note to clients.
"Overall, we see limited near-term upside to the cap-weighted S&P 500 and prefer the equal-weighted index, but our bear market signposts -- the triggers that typically precede an S&P 500 peak -- are not signaling elevated risks of an imminent bear market," Subramanian wrote.
For Tuesday:
Market participants will turn their attention towards housing data for October on Tuesday as well as earnings reports from companies including Walmart (NYSE: WMT) and Lowe's Companies (NYSE: LOW).