Bank Stock Beats Estimates and Stock Market Is Starting The Week Off With A Bang

Major stock market indices surged on Monday morning, returning to their Friday highs thanks to new investors. The S&P 500 increased by about 3% while the Dow Jones Industrial Average increased by more than 2% and 600 points.

The Nasdaq composite’s 3.5% gain was almost exactly matched by the 3.4% increase in the Russell 2000 small-cap index.

A very good 3.3% growth was achieved by the tech-heavy Nasdaq 100 tracking Invesco QQQ Trust ETF (QQQ).

The Nasdaq fell below that level while the NYSE saw stronger volume than at the same period on Friday.

The price of crude increased 1.2% to $86.60 per barrel. XLE, the SPDR Select Energy ETF, increased by 2.3%. The yield on 10-year Treasury notes decreased seven basis points to 3.95%. Up 2.5% to $19,585, bitcoin.

In the European Union, natural gas futures hit a 3-month low, with the benchmark contract falling 8% before rising in the middle of the day.

In an effort to prevent price spikes, the EU has proposed a temporary cap on gas prices. Prices for natural gas have decreased by 33% since the beginning of September.

The DAX stock index in Germany increased by 2%, the CAC 40 in Paris increased by 2%, and the FTSE 100 in London increased by 1.2% to start the week.

In an effort to calm the globe markets, the newly appointed head of the U.K. Treasury, Jeremy Hunt, announced on Monday that he is cancelling nearly all of the government’s scheduled tax cuts and would propose an energy price ceiling.

In contrast to the -2.5 consensus, the October Empire State Manufacturing survey showed a 9.1 drop. Each month, various economic indicators are produced using information from 200 or more manufacturing executives. The trend provides information about the most likely course of the economy for the ensuing six months.

After posting better-than-expected Q3 earnings per share and revenues, Bank of America (BAC) saw a 6.3% increase.

“Our U.S. consumer clients remained resilient with strong, although slower growing, spending levels and still maintained elevated deposit amounts,” said CEO Brian Moynihan.

Shares were raised above their 21-day exponential moving average by the move.

Online broker Schwab (SHWB) increased 0.6% after announcing better-than-expected Q3 earnings per share and sales. “Strongest quarterly result in business history,” the banking behemoth bragged.

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