US stocks were mostly lower on Monday, pulling back from last week's record highs.
Investors are turning their attention to third-quarter earnings season, with 21% of S&P 500 companies set to report this week.
Bank of America said that company executives are striking an optimistic tone on earnings calls.
US stocks traded mostly lower on Monday, retreating from last week's record highs.
While the Nasdaq 100 rose slightly, the Dow Jones Industrial Average declined by nearly 350 points.
The decline on Monday comes as third-quarter earnings season nears its peak, with more than 100 S&P 500 companies set to report results this week, including Coca-Cola, Tesla, Boeing, and UPS.
So far, investors should be feeling good about third-quarter results.
Of the 21% of S&P 500 companies that have reported so far, about 80% beat profit estimates by 5%, while 60% beat revenue estimates, according to data from Bank of America.
Bank of America strategist Savita Subramanian said that company executives are striking an optimistic tone on earnings calls.
"Processing the natural language of corporate management yields a record level of optimism, and a pick up after four quarters of deceleration," Subramanian said in a note on Monday.
She added: "Mentions of weak demand fell, tracking the lowest levels in two years where less / more mentions have been correlated to a rising / falling ISM Manufacturing PMI."
Nvidia jumped to record levels during the session to help lift the Nasdaq slightly higher. The stock rose more than 4% to close at $143.71. Analysts have been feeling bullish on the stock's prospects for further gains amid big demand for its new Blackwell chips. Bank of America was the latest firm to up its price target for the stock, calling out a "generational opportunity" for the company in a note at the end of last week.
It's a quiet week for economic data, though Fedspeak is set to ramp up with speeches from six central bank officials scheduled throughout the week.
Here's where US indexes stood at the 4:00 p.m. closing bell on Monday:
S&P 500: 5,853.98, down 0.18%
Dow Jones Industrial Average: 42,931.60, down 0.80% (-344.31 points)
Nasdaq composite: 18,540.01, down 0.27%
Here's what else happened today:
Disney said it will appoint Bob Iger's successor as CEO by early 2026.
Goldman Sachs said investors should prepare for a decade of muted returns in the stock market.
An under-the-radar bull case for bitcoin has nothing to do with the election or interest rates.
Here's where investors worried about a stock market bubble should invest their money.
In commodities, bonds, and crypto:
West Texas Intermediate crude oil was up 1.88% to $69.98 a barrel. Brent crude, the international benchmark, was higher by 1.56% to $74.20 a barrel.
Gold was higher by 0.16% to $2,734.50 an ounce.
The 10-year Treasury yield jumped 11 basis points to 4.188%.
Bitcoin was lower by 1.78% to $67,790.
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