S&P 500 Sets Record High as Earnings Are the Week's Focus

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Stocks traded mostly higher Monday as investors focused on the busiest week of earnings season and a Federal Reserve that is expected to leave key policy settings unchanged.

The Dow Jones Industrial Average fell 22 points, or 0.07%, to 34,021, the S&P 500 gained 0.24% and the Nasdaq was up 0.8%. 

The S&P 500 set a record intraday high during Monday’s session. The broad market index fell 0.1% last week, the S&P 500’s first weekly loss in the last five.

Jim Cramer: There Are 3 Market Bubbles Now but 2 Can Be Eliminated

More than 180 companies in the S&P 500 will be reporting earnings this week. They include such giants as Tesla  (TSLA) – Get Report, Amazon.com  (AMZN) – Get Report, Microsoft  (MSFT) – Get Report, Alphabet  (GOOGL) – Get Report and Apple  (AAPL) – Get Report.

Top Earnings to Watch: Tesla, Microsoft, Apple and Facebook

Tesla is expected by analysts Monday to report first-quarter earnings of 75 cents a share on sales of $10.48 billion. It would be Tesla’s seventh straight quarterly profit.

Tesla Earnings Preview: Revenue Surge on China Demand, Focus on Margins

Corporate earnings have been mostly positive so far this earnings season. More than 85 of the 125 companies that have reported so far have topped analysts’ forecasts. First-quarter profit for companies in the S&P 500 are expected to rise 34% from last year to a share-weighted $362.8 billion, according to forecasts from Refinitiv.

Economic data also have pointed to an economy primed for a strong recovery, while continued support from the U.S. government and the Federal Reserve, which meets Tuesday and Wednesday this week, also have put the U.S. on a firmer path than countries such as India and Brazil that are struggling with a surge in COVID-19 cases.

The yield on the benchmark 10-year Treasury was unchanged Monday at 1.567%.

“We’re gearing up for a busy week on all fronts,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Big tech earnings, a look into Q1 GDP, and the Fed meeting could create catalysts for market moves. Though despite the strong earnings reports we’ve seen thus far, the market is really taking beats in stride amid already high valuations.”

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Bitcoin was rallying Monday following a two-week stumble for the world’s largest cryptocurrency.

Bitcoin jumped 8.43% on Monday to $54,066, according to CoinDesk. The digital asset set a record of $64,829 earlier this month, largely on the back of enthusiasm for the direct listing of Coinbase Global  (COIN) – Get Report.

JPMorgan Chase  (JPM) – Get Report reportedly will offer an actively managed bitcoin fund to its clients later this year, a move that would signal a significant change in focus for a bank whose CEO once called bitcoin a “dangerous fraud.”