2023-04-17 16:04:18 ET
A choppy session ended on Monday with the major U.S. equity averages posting modest gains. Investors took a wait-and-see approach with the quarterly earnings season set to begin in earnest.
The Nasdaq Composite ( COMP.IND ) closed +0.3% , the S&P 500 ( SP500 ) ended +0.3% and the Dow ( DJI ) finished +0.3% .
"Despite getting cooler inflation data, modest job growth numbers, and better-than-expected big bank earnings last week, equity markets continued to remain rangebound in today's session," market expert Ahan Vashi told Seeking Alpha. "With S&P500 ( SPX ) currently trading in the 4,100 to 4,150 resistance zone, the Q1 earnings season could lead to a significant move in either direction."
Vashi added: "Considering the macroeconomic environment, equities could have a hard time justifying the trading multiple expansion of early 2023. Also, the volatility index ( VIX ) looks primed for a rebound out of a falling wedge pattern. Overall, I think investors would be prudent to remain cautious on equity markets at current levels."
Stocks gained ground last week amid economic data that pointed to cooling inflation and a softening of the labor market. This raised hopes that the Federal Reserve was nearing the end of its interest rate hikes.
Last week also saw the release of results from several big-name financial institutions. This theme continued on Monday, with State Street ( STT ) in the spotlight. Shares of the bank fell sharply following the release of disappointing results . Meanwhile, Charles Schwab ( SCHW ) rose following the release of its quarterly report .
Bank of America ( BAC ) and Goldman Sachs ( GS ) are set to announce their results this week. The docket also includes earnings from Tesla ( TSLA ), Netflix ( NFLX ), Johnson & Johnson ( JNJ ) and AT&T ( T ).
Looking at the fixed-income market, Treasury yields pushed higher. The 10-year yield ( US10Y ) rose 8 basis points to 3.59%, while the 2-year yield ( US2Y ) climbed 9 basis points to 4.19%.
Outside of the financial space, Roblox ( RBLX ) represented a notable mover. Shares of the video game platform plunged after announcing user metrics for March .
For further details see:
S&P 500, Dow, Nasdaq edge higher in choppy session