S&P 500 opens higher Monday to kick off a busy week of earnings: Live updates

Stocks opened higher to start the week Monday.

The Dow Jones Industrial Average gained 0.16%. The S&P 500 and Nasdaq Composite rose 0.29% and 0.38%, respectively.

— Sarah Min

A recent rally in Tesla shares prices may price in the increase to demand for the electric vehicle maker’s cars after prices were cut, according to UBS.

“We think the recent strong share performance fully reflects the strong demand response seen after the price cuts, as well as a solid execution in 2024,” analyst Patrick Hummel said in a note to clients Monday. “We continue to see Tesla globally leading the race to affordable electric and autonomous mobility, but on a 1-year view, risk/reward looks balanced.”

Tesla shares slid 1.5% in the premarket.

These are some of the stocks making the biggest moves before the bell:

• AMC Entertainment — Shares popped 37% after a judge on Friday denied a proposed settlement related to AMC Entertainment’s plan to convert preferred shares into common stock. The company said it has filed a revised stock plan. Preferred shares lost about 2% before the bell.
• Domino’s Pizza — The stock added 1%. Domino’s reported mixed quarterly results. The company reported earnings of $3.08 a share on $1.02 billion in revenue. Analysts surveyed by Refinitiv had looked for EPS of $3.05 on revenues of $1.07 billion.
• Tesla — The electric vehicle stock lost 1.6% after UBS downgraded shares to an underweight rating, saying that the recent uptick fully accounts for the demand boost prompted by recent price cuts.

— Samantha Subin

Shopify shares rose more than 2% in premarket trading on Monday after MoffettNathanson said the e-commerce stock could be close to a pivotal business moment.

“We expect Shopify to gain increasing traction with enterprise customers going forward,” analyst Michael Morton said in a note to clients Monday. “Better yet, early signs suggest the transition to the enterprise is already underway.”

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— Alex Harring

A stacked lineup of earnings and a Federal Reserve meeting could try the stock market rally this week, Oppenheimer says.

“This week will offer plenty of opportunity to test the stock market rally that began on October 12 last year and has carried forth from the beginning of this year through last Friday,” Oppenheimer’s John Stoltzfus wrote on Monday.

The Federal Reserve will announce its interest rate decision this week, and 165 S&P 500 companies are scheduled to report second-quarter results.

— Sarah Min

Business activity contracted in the euro zone in July, flash estimates from purchasing managers survey showed Monday.

The HCOB Flash Eurozone Composite PMI Output Index, which gauges activity in the manufacturing and services sector, fell to an eight-month low of 48.9 in July, down from 49.9 in June.

French and German PMI data also came in weaker than expected, slipping to 46.6 and 54.1, respectively.

— Karen Gilchrist

U.S. Treasury yields held steady on Monday, ahead of the Federal Reserve’s meeting this week to discuss its monetary policy plans and announce its latest interest rate decision.

At 4:10 a.m. ET, the yield on the 10-year Treasury was down by around one basis points to 3.8291%. The 2-year Treasury was last trading at 4.8460% after dipping by less than one basis point.

International investment firms have changed their China GDP forecasts nearly every month so far this year, with JPMorgan making six adjustments since January.

The U.S. investment bank most recently cut its China GDP forecast in July to 5%, down from 5.5% previously. That came alongside cuts this month by Citi and Morgan Stanley to 5%.

Read the full story here.

— Evelyn Cheng

Business activity in Australia’s private sector fell for the first time since March, mainly due to a contraction in services activity.

According to flash estimates from Juno Bank, the composite purchasing managers index fell to 48.3, down from 50.1 in June.

Services PMI went below the 50 no-change mark to 48, down from 50.1 in June. In contrast, manufacturing activity posted a softer contraction at 49.6 compared to the 48.2 seen in June.

A PMI above 50 represents an expansion in the sector, while a PMI reading under 50 represents a contraction.

— Lim Hui Jie

Japan’s business activity expanded for the seventh straight month, according to flash estimates by the au Jibun bank.

The country’s composite purchasing managers index stood at 52.1 for July, unchanged from the month before.

Services PMI slipped slightly to 53.9 from 54 in June, while manufacturing activity stayed in contraction territory, with the PMI falling to 49.4 from 49.8.

— Lim Hui Jie

Some Chinese stock sectors are seeing fundamentals shift in their favor.

Profits are moving to industrials, consumer discretionary and staples — and away from materials and energy, according to HSBC.

Investors may also get some answers about macro policy in coming days with a gathering of Chinese leaders, called the Politburo, due by the end of the month.

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— Evelyn Cheng

Shares of AMC Entertainment Holdings surged more than 60% after a judge on Friday blocked a proposed settlement on the company’s stock conversion plan that would allow the company issue more shares.

AMC Entertainment Preferred shares were down 15%.

In February the movie theater chain was sued for allegedly rigging a shareholder vote that would allow it to convert preferred stock to common stock and issue millions of new shares. Doing so would have diluted the common stock shares but allowed AMC to pay down some of its more than $5 billion in debt.

Read the full story here.

— Tanaya Macheel