Stocks Rise as Tech Giants Prepare to Report Earnings

In China, markets didn't welcome Xi Jinping's third term
By Newser Editors and Wire Services
Posted Oct 24, 2022 3:42 PM CDT
Stocks Rise Ahead of Big Tech Earnings Reports
Xi Jinping is seen at the end of the Chinese Communist Party's 20th Party Congress on a giant screen a commercial district of Hangzhou in eastern China's Zhejiang province on Sunday, Oct 23, 2022.   (Chinatopix via AP)

Stocks shook off an early bout of unsettled trading Monday and ended higher ahead of a heavy week of earnings from big tech companies. The S&P 500 rose 44.59 points, or 1.2%, to 3,797.34. The Dow Jones Industrial Average rose 417.06 points, or 1.3%, to 31,499.62. The Nasdaq rose 92.90 points, or 0.9%, to 10,952.61. Markets in Europe made solid gains. UK government bonds rallied as former Treasury chief Rishi Sunak became assured of becoming the prime minster, replacing Liz Truss, who quit last week after her tax-cutting economic package caused turmoil in financial markets.

Google's parent company, along with Facebook's parent, Amazon, and Apple are all reporting their latest financial results this week, the AP reports. They are among the priciest stocks in the benchmark S&P 500 and their earnings this week could mean big moves, up or down, for the broader market. Several big companies outside of the tech sector are also reporting earnings this week, including Coca-Cola, General Motors, and Caterpillar. "In general, the market is sitting back and there are a few data points people are waiting to see," says Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Managers Solutions.

Markets in China tumbled after Xi Jinping awarded himself another term as leader of the ruling Communist Party. The news roiled US listed shares of some big Chinese companies. Alibaba slumped 11.4% and fell 13.2%. Xi wants a bigger Communist Party role in China's business and technology development, raising fears about stunted economic growth because of too much centralized control. China's economy is also still hurting from strict COVID-19 restrictions.

(More stock market stories.)

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