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US stocks rise as investors assess widespread tech layoffs and brace for more earnings

Matthew Fox   

US stocks rise as investors assess widespread tech layoffs and brace for more earnings
Stock Market2 min read
  • US stocks moved higher on Monday as investors assess corporate earnings and more tech layoffs.
  • Spotify said it would cut 6% of jobs, or about 600 employees, after job cuts from Microsoft, Amazon, and Alphabet.
  • Meanwhile, activist investor Elliott Management took a multi-billion dollar stake in Salesforce.

US stocks were mostly higher to start the week, looking to extend big gains from Friday as investors assess a stream of corporate news and earnings results.

More layoffs hit the tech sector on Monday, with Spotify cutting 6% of its workforce, or about 600 employees. The job cuts from Spotify are after Amazon, Alphabet, Salesforce, and Microsoft all cut jobs in recent weeks. Shares of Spotify jumped more than 5% after the news.

In other corporate news, activist investor Elliott Management took a multi-billion dollar stake in Salesforce after the stock fell 50% from its peak. Shares of Salesforce jumped 4% in early Monday trades.

Investors have their eyes on fourth-quarter earnings, with 89 S&P 500 companies set to report this week. Of the 57 companies that have reported earnings so far, 67% beat profit estimates by a median of 5%, while 67% beat revenue estimates by a median of 2%, according to data from Fundstrat.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Monday:

Here's what else is happening this morning:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil rose 0.43% to $81.99 per barrel. Brent crude, oil's international benchmark, jumped 0.72% to $88.26.
  • Gold fell 0.43% to $1,920.00 per ounce.
  • The yield on the 10-year Treasury rose five basis points to 3.53%.
  • Bitcoin rose 0.15% to $22,793, while ether dropped 0.87% to $1,622.

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