Wall Street jumps on earning optimism
Major US stock indexes ended sharply higher on Monday as investors were optimistic about the start of earnings season, while transportation and small-cap shares also jumped. Market participants were monitoring the Israeli war in Gaza, but appeared to be taking more of a risk-on stance on Monday, with safe-haven gold prices down. Israeli forces continued their bombardment of Gaza, which has killed thousands, including many women and children, after efforts to arrange a cease-fire stalled. The Cboe Volatility index was lower, while the Dow registered its biggest daily percentage gain in about a month.  Charles Schwab shares jumped 4.7 percent as the brokerage posted a smaller-than-expected drop in quarterly profit. Quarterly results from large banks Goldman Sachs, Bank of America, Morgan Stanley, pharmaceutical giant Johnson & Johnson, electric vehicle maker Tesla and video-streaming pioneer Netflix are due this week. "At least for today, this is a market that sees a stronger earnings season, a stronger week in terms of earnings," said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina. At the same time, global leaders are trying to make sure that the Middle East conflict "remains contained," she said. The Dow Jones Industrial Average rose 0.93, to 33,985, the S&P 500 gained 1.06 percent, to 4,374 and the Nasdaq added 1.2 percent, to 13,568. Lululemon Athletica shares rose to their highest level in almost two years as the Canadian sportswear apparel maker was set to join the S&P 500 index this week, replacing Activision Blizzard. Lululemon shares ended up 10.3 percent. (Reuters)