A woman walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Monday, Aug. 2, 2021. Asian stocks have started the week higher, even as China reported a slowdown in manufacturing activity and countries in the region continue to be hammered by the delta variant. (AP Photo/Vincent Yu)
Stocks were rising in early trading Monday as investors embraced another strong set of earnings as well as progress in Washington to pass a large infrastructure package.
The S&P 500 index was up 0.4% as of 10 a.m. Eastern. The Dow Jones Industrial Average was up 0.5% and the Nasdaq composite was up 0.3%. The indexes ended July higher, the sixth straight month of gains.
This week will be one of the busiest for investors in some time. Roughly 150 members of the S&P 500 will report their results, and the July jobs report comes out on Friday.
Companies that will report this week include DuPont, Eli Lilly, CVS, Kraft Heinz, General Motors and Humana, among many others.
So far earnings season has been strong for corporate America, with the average S&P 500 company reporting an 85.1% growth in profits from last year. Roughly nine out of ten companies have beaten expectations on both profits and revenue. The index is on pace to have its strongest earnings season since 2009.
In Washington, Republicans and Democrats made progress in advancing President Biden's infrastructure package over the weekend. The package is expected to be passed in the Senate by the end of the week.
Square rose 7% after the payments company said it would acquire the “buy now, pay later” company Afterpay for $29 billion.
Bond yields were falling again. The yield on the 10-year Treasury note fell to 1.20% from 1.23% on Friday. Crude oil prices were down more than 1%. 7 Stocks to Buy That Will Benefit From Inflation
There are two narratives that are getting conflated when it comes to inflation. The first is whether or not inflation is occurring. And the second is whether inflation will get out of control.
To the first point, the clear answer is absolutely. There are price increases in everything from commodities to semiconductor chips. And even though lumber prices have gone down it’s a good bet that many consumers will put off their deck projects for another day.
And, of course, inflation numbers tend to strip out gas and groceries – but those are precisely the areas where consumers feel inflation the most. Inflation is real.
But is this just “transitory” as many analysts and the Fed itself claim? Or is it only the beginning of something much worse? The answer to those questions is probably above our pay grade.
As an investor, the inflation narrative only changes where you allocate your investment dollars. And for the most part, you’re probably only looking at a small percentage of your portfolio.
However, the first rule of investing is to not lose money so it’s important to identify companies that can provide a hedge against inflation – transitory or otherwise.
That’s the focus of this special presentation. Right now there are many strong companies that benefit when inflation is on the rise.
View the "7 Stocks to Buy That Will Benefit From Inflation"