US stocks rise as investors digest 2nd-quarter earnings beats

• US stocks climbed on Monday as investors continue to digest 2nd-quarter earnings results.
• With 85% of S&P 500 companies having reported results, 81% beat profit estimates.
• Investors are turning their attention to the Thursday release of the July inflation report. 

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US stocks jumped on Monday as investors continued to digest stronger-than-expected second-quarter earnings results.

With 85% of S&P 500 companies having already reported results, 81% are beating profit estimates by a median of 7%, while 64% are beating revenue estimates by a median of 3%, according to data from Fundstrat. Investors are still waiting for earnings results from Disney, Nvidia, Eli Lilly, and UPS, among others. 

Investors are also turning their attention to upcoming inflation data and whether that will impact the trajectory of the Federal Reserve's current interest rate trajectory.

July CPI data will be released later this week on Thursday. That, combined with the August jobs report and the August CPI report will inform the Fed as to whether they hike interest rates again at their September FOMC meeting. A recent surge in gas prices could impact the upcoming inflation reports.

According to the CME FedWatch Tool, the Fed is expected to keep the Fed Funds Rate at its current range of 5.25% to 5.50% until March 2024, when the central bank is expected to slightly cut interest rates by 25 basis points. For the Fed to cut interest rates, inflation would have to be decisively on track to near the Fed's long-term 2% target.

Here's where US indexes stood at the 4 p.m. ET close on Monday:

 

• S&P 500: 4,518.44, up 0.9%
• Dow Jones Industrial Average: 35,473.13, up 1.2% (408 points)
• Nasdaq Composite: 13,994.40, up 0.6% 

Here's what else happened today:

• Warren Buffett's Berkshire Hathaway reported second-quarter earnings over the weekend. The conglomerate is growing its profits while it sits on a cash pile of nearly $150 billion.
• As the US labor market remains strong, some investors are anticipating a higher for longer period of elevated interest rates. 
• The world's six richest people have gained a combined near-$1 trillion in wealth so far this year amid a sizable stock market rally.
• Nvidia is still a top stock pick at Bank of America, with the bank expecting the company to report strong demand during its upcoming earnings release.
• Artificial intelligence technologies will be at the center of the next financial crisis, according to SEC chief Gary Gensler.

In commodities, bonds and crypto:

• West Texas Intermediate crude oil fell 0.64% to $82.29 per barrel. Brent crude, oil's international benchmark, dropped 0.66% to $85.68.
• Gold dropped 0.21% to $1,972.00 per ounce.
• The yield on the 10-year Treasury jumped 4 basis points to 4.08%.
• Bitcoin rose 0.03% to $29,053, while ether dropped 0.53% to $1,818.