The markets started the week slightly higher as the bank stocks continued to offer support. A spike in interest rates was partly the cause of the boost. The Dow 30 was lower by 13, the S&P 500 added 5, and the Nasdaq 100 closed higher on the day by 21. Earnings will be the driving factor for the week.
It's a big week for earnings, including major tech names. Google (NASDAQ: GOOGL) will receive the most attention after the close today, and Texas Instruments (NYSE: TXN) tomorrow after the close. 18% of companies have reported earnings in the S&P 500, with 82% of them beating Wall Street's expectations and showing earnings growth of 20.6%. Analysts continue to expect 20%.
Sector News:
Financials (NYSE: XLF) lead the sector as the banks continued to grab attention from investors. The sector added 1.3% today and has almost made it back to the highs of the sloppy range it's been in since March.
Despite a slow start, the tech sector was able to move back to highs by lunch time. The sector has been widely criticized for being overbought, but investors turn a blind eye and continue investing.
Consumer staples (NYSE: XLP) was one of the weaker groups today as the sector continues to stall at recent highs. The sector has had a nice run-up since May, but is now stuck just under the 200-day moving average.
Stock News:
Hasbro (NYSE: HAS) shares were higher by 13% as the company reported earnings that came in much higher than Wall Street was expecting. Revenue was also much better than expected, which sent the bulls running to buy shares today. For now it seems that the toy maker has been able to shake off the bankruptcy of former competitor Toys 'R' Us. Today's move put shares into positive territory for the year.
Shares of Papa John's (NASDAQ: PZZA) made new lows today, dropping 10% as the company continues to fight off its founder, John Schnatter, who has been mired in controversy since allegedly using a racial slur during a conference call. The company as enacted a special clause in their bylaws allowing them to stop anyone from gaining control of the company through purchases of shares on the open market. Shares are now lower by almost 20% on the year.
Tesla (NASDAQ: TSLA) shares were lower today by 3% on news that the company was asking some suppliers for refunds on money they previously spent. The headlines were a bit unclear on what actually took place, but investors were concerned that the company may be trying to gather cash for future growth.