The S&P 500 is rising barely as buyers look ahead to a busy week. The Apple inventory is leaping

The S&P 500 saw a spike in volatile trading Monday as investors prep for a busy week of earnings with reports from the biggest tech companies.

The broad equity benchmark gained 0.1%, supported by utilities and real estate. The tech-heavy Nasdaq Composite rose 0.4% after hitting an all-time high earlier in the day. The Dow Jones Industrial Average, which is less prone to changes in technology shares, lost more than 80 points.

In the coming week, 13 Dow Components and 111 S&P 500 companies will be showing profits. Quarterly reports on deck include reports from Apple, Microsoft, Netflix, Tesla, McDonald’s, Honeywell, Caterpillar and Boeing.

Apple shares rose 2.6% to around $ 140 per share ahead of their quarterly report on Wednesday after the bell. Tesla, which also reported on Wednesday, gained 2.6%.

“The Street expects robust results from Apple on Wednesday after Cupertino is set to significantly outperform Street estimates across the board,” wrote Wedbush’s Dan Ives, who raised its 12-month price target to $ 175 on Monday. “While the road is forecasting around 220 million iPhone units [for 2021]We believe that based on current developments and in a bull case, Cupertino has the potential to sell north of 240 million units. “

Highly speculative moves in stocks like GameStop worried some investors, creating concerns that parts of the market had broken away from fundamentals and that the broader market could take a hit after the mania ended.

The stationary video game retailer’s shares rose more than 140% to over $ 150 on Monday as a number of retail investors active in online chat rooms sought to get rid of short sellers. GameStop briefly went negative in wild trade. Other heavily shortened names, including Bed Bath & Beyond, also rose higher on Monday, amid the shopping spree.

Companies got off to a strong start into the profitable season. Of the S&P 500 components that have already reported profits, 73% outperformed both sales and earnings per share, according to Bank of America. The company said it was similar to last quarter when the number of companies that beat hit a record.

“Every day you will see the percentage of companies that exceeded expectations, but most companies failed to provide guidance because of Covid,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

Wall Street has had a successful week amid the strength of the tech sector. The Dow and S&P 500 gained 0.6% and 1.9%, respectively. The Nasdaq was up 4.19% last week in its best week since November, when stocks of big tech names hit the index to a record high.

The surge came as President Joe Biden tried to push through a $ 1.9 trillion stimulus package that many Republicans in Congress are opposed to. The tax subsidy includes, among other things, direct controls for millions of Americans, aid to state and local governments, funding for Covid vaccines and tests, increasing the minimum wage, and improving unemployment benefits.

The number of coronavirus cases in the US and abroad continues to rise, but many economists are forecasting a return to growth this year.

“We continue to believe that a reduction in virus risk from mass vaccination coupled with fiscal support for consumer spending will result in a mid-year consumption boom and very strong growth in 2021,” Jan Hatzius, chief economist at Goldman Sachs, told a note to customers over the weekend.

However, the company found that while risks like insufficient tax subsidies are less likely, other risks remain. Hatzius cited consumers who remained more cautious than expected, as well as the development of a vaccine-resistant virus strain, as possible future headwinds for the market.

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