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

A dovish Fed pivot next week could see investors move out of FAANG stocks, says Fundstrat's Tom Lee

The Dow Jones Industrial Average rose Monday, headed for its longest streak of gains since February 2017 as traders awaited a batch of key earnings reports and a major policy decision from the Federal Reserve.

The 30-stock Dow gained 0.47%. The S&P 500 rose 0.40%, while the Nasdaq Composite gained 0.22%.

Energy stocks led gains in the S&P 500, with the sector up more than 1.7%, after oil and gasoline futures touched a three-month high Monday. Shares of Halliburton were higher by more than 2%, while Devon Energy was up by 1%.

Stocks are coming off a 10-day advance for the Dow Jones Industrial Average. The blue-chip Dow eked out a 2.51-point gain on Friday, marking its longest rally since 2017. The S&P 500 finished the week up by 0.7%, while the Nasdaq Composite fell 0.6% in the same period.

Earnings from some 150 companies in the S&P 500 this week plus the Federal Reserve’s last policy meeting until September could try the recent rally. Investors anticipate the Fed will increase rates by a quarter percentage point at the conclusion of its meeting on Wednesday. They will be listening to comments by Chair Jerome Powell to get a sense of the central bank’s position on what happens next as it tries to navigate a soft landing for the economy.  

“So far, there’s no evidence of a recession. So as long as there’s no evidence of recession, and I think the market will probably continue to melt up; people are chasing,” Steve Eisman, senior portfolio manager at Neuberger Berman, said on CNBC’s “Squawk Box.”

About 40% of the Dow and 30% of the S&P 500 will give their financial updates during the week, including Alphabet, Microsoft and Meta. Several big pharma companies are getting ready to report and it’s a big week for industrial companies and big oil as well.

Traders will also watch for the personal consumption expenditures index, the Fed’s preferred inflation gauge, which is due at the end of the week.

— CNBC’s Robert Hum and Yun Li contributed reporting.

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