Wall Street drifted higher Monday to kick off the first full week of earnings reporting season.
The S&P 500 rose 13.68, or 0.3%, to 4,151.32 in its first trading after squeezing out its fourth winning week in the last five. The Dow Jones Industrial Average gained 100.71, or 0.3%, to 33,987.18, while the Nasdaq composite climbed 34.26, or 0.3%, to 12,157.72.
All three swayed between small gains and losses in quiet trading before ending near their highs for the day.
Several financial companies reported a mixed set of profit reports for the first three months of the year. They followed up on a bevy of better-than-expected reports f rom JPMorgan Chase and other big U.S. banks that marked the unofficial start of reporting season late last week.
A lot of focus has been on the strength of the financial industry broadly after the second- and third-largest U.S. bank failures in history last month rocked markets worldwide.
Charles Schwab reported better profit than expected, and its stock rose 3.9%. It flipped from an earlier loss after it said deposits fell more last quarter than expected. It also paused a stock buyback program.
A worry for the broad financial industry has been that customers could pull out deposits amid all the fear about the U.S. banking system. The spotlight has been hottest on regional banks that are a rung or several below in size of JPMorgan Chase and the other massive, "too-big-to-fail" banks. They're seen as more vulnerable to customers fleeing en masse, akin to the runs that helped cause the failures of Silicon Valley Bank and Signature Bank last month.
M&T Bank jumped 7.8% for the biggest gain in the S&P 500 after it reported stronger profit and revenue than expected.
State Street dropped 9.2% after reporting slightly weaker profit and revenue than forecast.
Broadly, e xpectations for companies across the S&P 500 this reporting season are very low. Analysts are forecasting the sharpest drop in earnings per share for companies in the S&P 500 since the pandemic was pounding the global economy in 2020.
Later this week, Bank of America, Johnson & Johnson, Tesla and several regional banks will also report their results.
So far, the earliest trends for earnings season seem to be encouraging, and the highest percentage of companies are beating profit forecasts for the first week since at least 2012.
"A massive, systemic financial confidence shock appears to have been averted, but tighter credit is manifesting in the real economy," strategists led by Savita Subramanian wrote in a BofA Global Research report.
The worry is that all the turmoil in the U.S. banking system could cause some banks to pull back on their lending to companies and households. That would effectively tighten the brakes on the economy, when the Federal Reserve has already clamped the vise sharply over the last year in hopes of slowing high inflation.
The Fed has jacked up interest rates at the fastest pace in decades, and expectations are firming that it will raise them again at its next meeting next month. Even though inflation has been cooling, it still remains far above the Fed's liking.
Higher rates can stifle inflation but only by slowing the economy, raising the risk of a recession and dragging on prices for stocks, bonds and other investments.
The much higher rates of today have already caused cracks to appear in the U.S. banking system. Fear is rising that the commercial real estate market could also be set to shake.
"We expect delinquencies on office loans to materially increase from today's low levels," Goldman Sachs strategists led by Lotfi Karoui wrote in a report. "The timing and the magnitude of losses stemming from delinquent CRE loans relative to previous cycles remain, however, uncertain."
A bright spot for the economy arrived Monday with a report showing that manufacturing in New York state unexpectedly grew. Economists were expecting another month of contraction, as manufacturing has struggled under the weight of higher interest rates.
One of the biggest gains on Wall Street came from Prometheus Biosciences. It soared 69.7% after the biotechnology company announced over the weekend that it was being acquired by Merck for $200 per share, or about $10.8 billion. Merck slipped 0.3%.
In the bond market, the 10-year Treasury yield rose to 3.59% from 3.52% late Friday. It helps set rates for mortgages and other important loans.
The two-year yield, which moves more on expectations for the Fed, climbed to 4.19% from 4.10%.
In markets abroad, stocks jumped 1.4% in Shanghai. China's central bank kept the one-year medium-term lending facility rate unchanged at 2.75%, suggesting economic growth data to be released Tuesday won't be too alarming.
Stocks also rose across other Asian markets, while European indexes were mixed.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
In part three of a four-part investigation into the seedy underbelly of the lucrative clothing donation bin industry, CTV W5's Jon Woodward and Joseph Loiero look into allegations that the industry is rife with organized crime activity.
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, 愛污传媒 confirmed Wednesday.
Montreal Mayor Valerie Plante announced Wednesday she would not seek a third mandate. Her decision has many talking about the demands of municipal leadership, particularly for women.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
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Abousfian Abdelrazik told a court Wednesday about the roller-coaster of emotions he experienced during the tense days of early 2009 when he awaited the green light to return to Canada from Sudan.
Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.
A Real Canadian Superstore in B.C.'s Fraser Valley was evacuated Tuesday night due to a "suspicious" fire in the toilet paper aisle, according to authorities.
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
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Trash carried by a North Korean balloon fell on the presidential compound in central Seoul on Thursday, officials said, the second such case in recent months that raise concerns about the vulnerability of key South Korean sites during potential North Korean aggression.
Turkiye鈥檚 air force struck Kurdish militant targets in Iraq and Syria on Wednesday in apparent retaliation for an attack at a key state-run defence company that killed five people and wounded more than a dozen others.
The Justice Department warned Elon Musk鈥檚 America PAC in recent days that his US$1 million sweepstakes to registered voters in swing states may violate federal law, people briefed on the matter told CNN.
If you鈥檙e a regular visitor to Walt Disney World, your annual passes are going to cost you more. The resort in Orlando, Fla., hiked prices on all four levels of its passes on Wednesday.
Three people were found dead Wednesday and four others were hospitalized after an 'unexplained' incident at a care home in southern England, police said.
The U.S. said Wednesday that 3,000 North Korean troops have deployed to Russia and are training at several locations, calling the move very serious and warning that those forces will be 'fair game' if they go into combat in Ukraine.
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Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
A debate has ground work in the House of Commons to a halt for weeks, but a new poll suggests that most Canadians are not even aware it's happening.
McDonald鈥檚 worked Wednesday to reassure customers that its U.S. restaurants are safe as federal investigators tried to pinpoint the cause of a deadly E. coli outbreak linked to the fast-food giant's Quarter Pounder hamburgers.
A quick shake of the head after a hard hit could signal that a person has a concussion, a new study suggests, based on the experiences of young athletes.
A recall has been issued for certain clothing items sold at Giant Tiger stores over high levels of lead, according to a notice published by Health Canada Tuesday.
Vancouver Fire Rescue Services received its first shipment of new firefighting gear on Wednesday, advancing the department's plans to reduce cancer risk for its members.
Officials in Hong Kong said Wednesday they have discovered dinosaur fossils in the city for the first time on a remote, uninhabited island that's part of a geopark.
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Ron Ely, who played the title character 'Tarzan' in the 1960s NBC series, has died at the age of 86.
Cardi B says she has been hospitalized with a medical emergency and will have to miss a Saturday night headlining performance at an Atlanta music festival.
Almost three years after the deadly Astroworld Festival tragedy, Houston rapper and concert headliner Travis Scott just settled hundreds of lawsuits related to the case.
Canada's discount airline is suspending operations to and from Saskatoon.
Things could be looking up for Waterloo, Ont.-based company and former tech darling Sandvine, after being removed from the U.S. Department of Commerce Entity List earlier this week.
Starbucks Corp suspended its forecast through the next fiscal year as new CEO Brian Niccol looks to turn around the coffee giant struggling with falling demand for its pricey drinks.
A new resident at a Manitoba animal rescue has waddled her way into people's hearts.
Grab your passport and your sunscreen, Lonely Planet has just revealed its 30 must-visit destinations for 2025 as well as a brand-new rundown of top 10 travel trends.
The Radium Hot Springs in British Columbia's Kootenay National Park has undergone a $29-million makeover.
An 18-year-old has filed a lawsuit over the ownership of the ball Shohei Ohtani made baseball history with when he became the inaugural member of the 50-50 club.
Evan Mobley had 25 points and eight rebounds to lead the Cleveland Cavaliers to a 136-106 rout in Toronto's home opener on Wednesday as the Raptors also lost starting point guard Immanuel Quickley.
Former 'Malcolm in the Middle' star Frankie Muniz is set to continue his NASCAR career with a full-time ride in the Truck Series for 2025.
An increased risk of fire has prompted the recall of thousands of Honda hybrid vehicles in Canada.
A senior executive for Volkswagen in China has been deported for allegedly using cocaine and marijuana while on vacation in Thailand, according to Chinese authorities and German media reports.
The U.S. government's road safety agency is investigating Tesla's 'Full Self-Driving' system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian.
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Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.
A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.
A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.
A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.
Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.
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The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.
Legend has it that on a dark evening in 1988, friends of Supt. Joe Atherton quietly buried his body on the site of the old provincial RCMP headquarters in Vancouver.
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Brittany La Torre and her husband Marc moved into their West Vancouver home just six months ago, but after last weekend's storm brought a torrent of muddy water and debris into their basement, knocking out power, they're not sure whether they'll be living in it six months from now.
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
Brampton is looking to the federal and provincial government to address the growing number of its vulnerable international students being exploited and trafficked.
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A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.
Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.
The City of Ottawa is hoping to learn this week just how many residents in the capital are homeless.
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Homeowners with a variable rate mortgage in Ottawa can expect to see some savings thanks to a significant rate cut by the Bank of Canada.
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Nigel Berkley and CRARR plan to file complaints with the police ethics commissioner and the human rights commission after Berkley was repeatedly stopped while driving his mother's car over four months.
Montreal Mayor Valerie Plante will not be seeking re-election.
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The leader of Alberta's Official Opposition rolled up his sleeves for his COVID-19 and flu shots today, opting to receive them in front of media because he's concerned about vaccine uptake.
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A Manitoba inmate who was released from custody by mistake has been arrested, according to Winnipeg police.
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Southey RCMP say drivers should expect delays on Highway 6 Wednesday night after a serious crash.
Regina police says officers will provide an update Thursday in its search for the suspect of a homicide that took place in the city during the summer of 2023.
Detective Robert Hofstetter examined Erb鈥檚 home after her death and came to several conclusions based on the blood stains he found there.
A psychologist who recently assessed Geovanny Villalba-Aleman believes he may have experienced a psychotic break before stabbing three people in a gender studies class at a University of Waterloo.
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Canada's discount airline is suspending operations to and from Saskatoon.
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A Sudbury jury has found Felicity Altiman guilty of second-degree murder in the December 2020 stabbing death of a Sudbury man.
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Barrie police conducted a search on Wednesday of the last place Autumn Shaganash was seen in hopes of giving her family some answers to her mysterious disappearance.
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The Windsor Jewish Federation responded on Wednesday evening to a decision by the board of governors for the University of Windsor concerning its agreements with pro-Palestinian protesters.
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Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.
When 16-year-old Kaydence Bourque was struck and killed in a crosswalk on Cedar Hill Cross Road in Saanich in 2021, the community was shaken to the core.
A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.
Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.
A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
Graduate students looking to become mental-health professionals will have more opportunities to study in the University of Lethbridge鈥檚 Master of Education Counselling Psychology program.
A dazzling light display is making its return to Lethbridge this holiday season.
As part of anniversary celebrations, the City of Lethbridge is inviting the community to see VisitLethbridge.com Arena like they never have before.
The lack of 24-hour public washrooms has been a long-standing issue in the Sault, especially considering the rise in homelessness.
The union representing the fire rangers with the Ministry of Natural Resources says money won鈥檛 fix the systemic problems in the workplace.
Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.
Investigators found the remains of a 77-year-old American man on Wednesday at the scene of a fire that destroyed a hotel in western Newfoundland earlier on the weekend.
Police in western Newfoundland say a 77-year-old man visiting the province from Kansas is missing after a fire at a hotel in Deer Lake, N.L.
At 2 p.m. on Thursday, the scene at the Lions Club in Clarenville, N.L., rivalled any rowdy St. John's bar that thumps with music late on a weekend night.
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