U.S. stocks started on a positive note Monday morning, following a roller-coaster ride last week that ended with the S&P 500 and the Nasdaq $NDAQ having their best weeks since November.
Despite rising fears of stagflation — a combination of slow growth and high inflation — and interest rate cuts that could still be months away, optimism ahead of a major week for corporate earnings helped push all three major market indexes slightly higher. The list of companies reporting earnings this week includes Apple $AAPL, Amazon $AMZN, Advanced Micro Devices, Super Micro Computer, MicroStrategy, Coinbase, Novo Nordisk, McDonald’s, and Coca-Cola $KO.
Meanwhile, the Federal Open Market Committee will make its next decision on interest rates on Wednesday, followed by the release of the monthly jobs report on Friday.
The Dow Jones Industrial Average edged up 82 points, or 0.2%, to 38,322 near midday. The S&P 500 and the Nasdaq were also both up about 0.2%.
Tesla stock soars after FSD approval in China
After Elon Musk made a surprise visit to China on Sunday, Tesla $TSLA has reportedly overcome a major hurdle in its goal to introduce its driver assistance technology in the world’s largest auto market.
Chinese authorities on Sunday tentatively approved Austin, Texas-based Tesla’s plan to launch its Full Self-Driving (FSD) technology in the country, according to multiple media reports. The rollout hinges on a newly-signed agreement with Chinese technology giant Baidu and Tesla’s efforts to meet requirements for how it handles data security and privacy issues.
Tesla stock jumped 14% in Monday morning trading, helping Musk overtake Amazon’s Jeff Bezos again in the rankings of richest people on Earth.
Apple stock jumps on Bernstein upgrade
Bernstein upgraded Apple stock from Market Perform to Outperform on Monday morning, help sending its stock higher. Bernstein maintained its $195 price target on the shares, which is 15% higher than the current pirce.
Apple is due to release its quarterly earnings on Thursday. Apple stock was up 3% near midday.
Paramount stock jumps as its CEO might be heading for the door
Paramount $PARA Global stock rose following news that the company might oust Bob Bakish as CEO before its quarterly earnings report Monday after the markets close. Bakish’s potential departure comes as Paramount Global and Skydance Media are close to a merger agreement. Shari Redstone, who owns 77% of Paramount’s voting rights, is now open to a “majority of the minority” vote on a Skydance merger deal, allowing common shareholders to vote on the company’s future, CNBC reports.
Paramount stock was up about 5%.
Other tech and AI stocks edge down
Some Big Tech and AI stocks went in reverse to start the day. Google $GOOGL parent Alphabet, Meta $META, and Nvidia $NVDA all suffered declines of 2.2%, 1.8%, and 1%, respectively.
-William Gavin contributed to this article