US open: Stocks higher as oil prices fall, traders look ahead to midterms

(Sharecast News) - Major indices were firmly in the green early on Monday, with falling oil prices boosting sentiment as investors preparing for a packed few days of earnings, macro data and Tuesday's midterm elections.

As of 1530 GMT, the Dow Jones Industrial Average was up 1.24% to 52,409.90, while the S&P 500 advanced 1.07% to 7,660.80 and the Nasdaq Composite came out of the gate 1.32% firmer at 25,773.93.

The Dow opened 639.59 points higher on Monday, more than reversing losses recorded in the previous session after a dramatic tech sell-off weighed heavily on market sentiment.

Oil prices were in focus early on Monday, with Brent crude falling 6.77% to $105.75 a barrel, while West Texas Intermediate dropped 6.87% to $96.97 a barrel, as oil prices unwound earlier gains amid renewed hopes of deescalation between Washington and Tehran.

Prices had initially pushed higher after comments from Secretary of State Marco Rubio, who said Donald Trump "hasn't made a decision" on military action against Iran and that the administration would prefer to resolve tensions "peacefully". Iranian state media also reported that its foreign minister said an agreement was possible if the US "demonstrates goodwill", helping ease fears of further disruption to global supply.

Traders were also looking ahead to tomorrow's midterm elections, with polling indicating a sharp swing towards the Democrats as Donald Trump's approval rating hitting its lowest level for any sitting president heading into a midterm since Harry Truman.

Democrats have been projected to win by a wide margin and could potentially flip the Senate and secure a sizeable majority in Congress, which would materially strengthen oversight of Trumpera policies ranging from immigration enforcement and trade disputes to federal workforce cuts and the Iran conflict.

In the corporate space, Estée Lauder posted a strongerthanexpected first quarter performance ahead of the open on Monday, with earnings per share coming in at $0.72, comfortably ahead of the $0.51 forecast by analysts. Revenues of $3.72bn also topped consensus estimates of $3.64bn, as the beauty group continued to benefit from improving demand across key markets.

Elsewhere, Loews delivered a thirdquarter earnings beat, despite lower yearonyear profits, with the firm reporting adjusted EPS of $1.50, down from $2.43 a year earlier, on $4.76bn of revenue, slightly higher than the $4.67bn posted twelve months ago. Net income attributable to Loews fell to $306m from $504m, with the decline driven by a $125m aftertax charge at CNA Financial linked to longterm care reserve updates, alongside higher catastrophe losses and softer property and casualty underwriting.

Still to come, Apple and Palantir were both slated to report quarterly earnings figures after the close.

On the macro front, US manufacturing expanded again in October, with both the S&P Global and ISM surveys pointing to continued growth across the sector, though with differing signals on momentum, inflation and business sentiment. The S&P Global US manufacturing PMI eased to 54.9 from September's 55.9, still marking a fifteenth straight month of expansion but indicating a slight softening in growth.

The ISM manufacturing PMI painted a firmer picture, rising to 55.5 from 54.5 and remaining comfortably above the 50 threshold. Four of the five key subindices strengthened, with new orders edging up to 55.5 and production jumping to 59.0. Employment growth slowed slightly to 52.4, while the prices index fell to 75.2, though still indicating elevated cost pressures.

On another note, construction spending slipped 1.9% month-on-month to a seasonally adjusted annualised rate of $2.186trn in September, marking the steepest drop since April 2020, following August's upwardly revised 2% advance and falling well and truly short of the 0.4% increase expected by econoomists. According to the Census Bureau, total private construction shrank by 2.4%, led by a 5.5% decline in residential activity, while non-residential spending rose by 1.1%.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Boeing Co. (BA) $176.09 2.82%

American Express Co. (AXP) $327.62 2.70%

Goldman Sachs Group Inc. (GS) $915.46 2.36%

Walt Disney Co. (DIS) $113.56 2.24%

Visa Inc. (V) $423.27 2.15%

Home Depot Inc. (HD) $335.69 1.95%

McDonald's Corp. (MCD) $262.63 1.74%

3M Co. (MMM) $177.37 1.73%

JP Morgan Chase & Co. (JPM) $340.98 1.28%

Microsoft Corp. (MSFT) $524.64 1.08%

Dow Jones - Fallers

Intel Corp. (INTC) $64.22 -2.72%

Cisco Systems Inc. (CSCO) $103.92 -2.63%

Amgen Inc. (AMGN) $462.83 -2.12%

Johnson & Johnson (JNJ) $267.76 -2.01%

Unitedhealth Group Inc. (UNH) $397.83 -2.01%

Chevron Corp. (CVX) $232.66 -1.51%

Apple Inc. (AAPL) $340.48 -1.45%

Dow Chemical Co. (DOW) $34.29 -1.24%

Merck & Co. Inc. (MRK) $147.38 -1.12%

Travelers Company Inc. (TRV) $395.02 -0.50%

S&P 500 - Risers

Idexx Laboratories Inc. (IDXX) $640.53 11.95%

Alaska Air Group Inc. (ALK) $38.87 8.72%

Mohawk Inds Inc. (MHK) $150.15 6.63%

United Airlines Holdings Inc (UAL) $110.98 6.51%

Harley-Davidson Inc. (HOG) $33.28 6.41%

LKQ Corporation (LKQ) $19.19 6.08%

Amazon.Com Inc. (AMZN) $251.60 5.57%

Jefferies Financial Group Inc. (JEF) $48.73 5.32%

Capri Holdings Limited (CPRI) $19.78 5.22%

American Airlines Group (AAL) $13.27 5.18%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Seagate Technology Plc (STX) $616.83 -7.53%

Illumina Inc. (ILMN) $232.54 -7.17%

NetApp Inc. (NTAP) $194.76 -6.05%

F5 Inc. (FFIV) $329.05 -5.96%

Oracle Corp. (ORCL) $122.99 -5.43%

Fortinet Inc. (FTNT) $130.08 -4.60%

Akamai Technologies Inc. (AKAM) $90.82 -4.57%

Western Digital Corp. (WDC) $357.96 -3.70%

Equity Residential (EQR) $63.66 -3.50%

Nasdaq 100 - Risers

Idexx Laboratories Inc. (IDXX) $640.53 11.95%

Amazon.Com Inc. (AMZN) $251.60 5.57%

Liberty Global plc Series A (LBTYA) $8.19 5.50%

American Airlines Group (AAL) $13.27 5.18%

Wynn Resorts Ltd. (WYNN) $77.95 5.00%

Expedia Group Inc. (EXPE) $297.81 4.99%

Liberty Global plc Series C (LBTYK) $8.03 4.77%

Autodesk Inc. (ADSK) $257.00 4.55%

Gen Digital Inc. (GEN) $30.15 4.48%

Tesla Inc (TSLA) $407.02 3.68%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Seagate Technology Plc (STX) $616.83 -7.53%

Check Point Software Technologies Ltd. (CHKP) $143.01 -7.37%

Illumina Inc. (ILMN) $232.54 -7.17%

Western Digital Corp. (WDC) $357.96 -3.70%

QUALCOMM Inc. (QCOM) $168.24 -2.80%

Ross Stores Inc. (ROST) $228.87 -2.75%

Intel Corp. (INTC) $64.25 -2.72%

Cadence Design Systems Inc. (CDNS) $327.06 -2.70%

Cisco Systems Inc. (CSCO) $103.81 -2.63%