The stock market today: Dow rising, Goldman gains, Bitcoin jump

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The stock market was on its way up again on Monday after a fantastic Friday with earnings from such as

Goldman Sachs

lift the investor spirit.

By mid-morning

Dow Jones Industrial Average
has risen 190 points, or 0.6%, while

S&P 500
has received 0.7%, and

Nasdaq Composite
has risen 1.1%.

Even Bitcoin USD and other tokens rose as investors’ appetite for risky assets declined. Bitcoin rose 6% to over $ 22,000, reaching its highest level since dramatic sales in mid-June brought the largest crypto down from $ 30,000 to as low as $ 18,000.

The stock jumped on Friday, with all three major indices rising more than 1% as investors beat expectations of a full-point rise in interest rates from the Federal Reserve. This has given investors a clear chance to focus on the company’s profits instead. And they will have to focus given that 244 S&P 500 companies will report earnings over the next two weeks.

Companies are already beating expectations. With almost 10% of the S&P 500’s market value reported earnings, earnings have come 3.7% above estimates. Still, one problem remains. While companies beat expectations for the last quarter, the road ahead may become more difficult. When interest rates rise and the demand for a recession increases, it seems likely that earnings estimates will have to decline. Profit expectations for the S&P 500 for 2022 have risen during the year, but are now down 0.3% in the last month, according to FactSet.

“The second quarter reporting season should start a much-anticipated round of negative earnings audits,” wrote Dennis DeBusschere, founder of 22V Research.

Nevertheless, earnings look good on Monday morning to keep the rally going. Goldman Sachs (ticker: GS), for example, has risen 3.7% after reporting better-than-expected earnings, while

Bank of America

(BAC) has risen 1% even after missing estimates.

Whether the earnings can be good enough to keep the rally going remains to be seen.

The current rally, while it was still going on, moderated somewhat after the open Monday. The indices were below their highs as both short-term and long-term government interest rates rose. Markets have become increasingly confident that interest rates have peaked, which alleviates the potential damage to the economy, but if they push higher, it could put a pause in the stock market rise.

Here are some stocks on the move Monday:

Shares that are sensitive to digital assets rose, with shares in the crypto exchange

Coinbase Global

(COIN) increases 12%.

Microstrategy

(MSTR), a software group with significant Bitcoin holdings on the books, received 9.7%, while digital payment groups

Block

(SQ) and

PayPal

(PYPL) increased 3% and 1.7%, respectively. Bitcoin miners

Digital Marathon

(MARA) and

Riot Blockchain

(RIOT) was 20% and 14% higher.

WD-40

(WDFC) stock rose 5.5% after being upgraded to Buy from Neutral at DA Davidson & Co.

JPMorgan Chase & Co.

(JPM) shares rose 0.3% after being upgraded to Hold from Sell at Berenberg.

Write to Jack Denton at [email protected] and Jacob Sonenshine at [email protected]