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Nvidia (NVDA) earnings Q2 2022

Nvidia (NVDA) earnings Q2 2022

Nvidia reported earnings on Wednesday for its second fiscal quarter, which ended Aug. 1, beating Wall Street estimates because of strong graphics card sales.

However, Nvidia’s cryptocurrency chip product, CMP, had lower sales, at $266 million, than the $400 million the company predicted in May. Shares of Nvidia were up more than 2% in after-hours trading.

Here’s how the chipmaker did versus Refinitiv consensus estimates:

  • Earnings: $1.04, adjusted, vs. $1.01 expected
  • Revenue: $6.51 billion, vs. $6.33 billion expected

Nvidia forecast $6.8 billion in revenue in the current quarter, beating Refinitiv expectations of $6.5 billion.

Nvidia is in a period of sustained, massive growth in its business as semiconductors are in short supply worldwide and as demand for the kind of processors that the company specializes in skyrockets. Nvidia’s revenue rose 68% annually during the quarter. In the previous quarter, sales grew 84%.

Graphics chips like Nvidia makes are increasingly important for a variety of technologies including gaming, artificial intelligence and types of cryptocurrency mining.

Nvidia’s graphics segment, which is primarily made up of graphics cards, grew 87% to $3.91 billion, growing faster than the compute and network segment, which includes chips for data centers. Compute and network grew 46% to $2.6 billion.

Broken down by market instead of reportable segment, one highlight was gaming, which was up 85% to $3.06 billion. Nvidia has had supply issues since late last year as its latest line of graphics cards has remained mostly sold out in stores, and the company said in May that it expected supply issues through the second half of the year. The company said Wednesday that it was seeing longer lead times throughout its supply chain.

Nvidia said the increase in gaming sales was due to both GeForce graphics card sales as well as the chips it sells to game console makers, such as the processor at the heart of the Nintendo Switch.

Nvidia’s data center business also hit an all-time high, growing 35% annually to $2.37 billion, which the company attributed to graphics cards for data centers, both in industrial uses and among cloud providers.

Investors are closely watching how correlated Nvidia’s business is to cryptocurrency prices.

Cryptocurrency revenue fell short of expectations, reporting $266 million in cryptocurrency card sales, more than 33% lower than expectations. Nvidia forecast in May that the dedicated chips it makes for mining cryptocurrency, called CMP, would have sales of around $400 million in the August quarter.

Nvidia says its cryptocurrency cards are an effort to ensure there is enough chip supply for gamers and it applied software to its GPUs to prevent them from mining cryptocurrencies. Nvidia CFO Colette Kress said that it expects a “minimal contribution” from its CMP sales going forward.

Nvidia’s professional visualization segment, mostly graphics cards for high-end professional workstations, were up 156% annually to $519 million. Its automotive business remains a small portion of the company’s sales, with $152 million in sales, down sequentially from the most recent quarter and up 37% from the same quarter last year, which was in the middle of the global Covid-19 pandemic that snarled auto production.

Last year, Nvidia said it planned to buy Arm, which makes important intellectual property for mobile chips, for $40 billion. The deal is opposed by some of Nvidia’s competitors, which worry that they may lose access to important Arm technology.

“Although some Arm licensees have expressed concerns or objected to the transaction, and discussions with regulators are taking longer than initially thought, we are confident in the deal and that regulators should recognize the benefits of the acquisition to Arm, its licensees, and the industry,” Nvidia said in a statement.

Nvidia split its stock 4-for-1 in June. Shares are up over 57% in the last year.

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Berkshire Hathaway BRK earnings Q2 2021

Berkshire Hathaway BRK earnings Q2 2021

Warren Buffett at Berkshire Hathaway’s annual meeting in Los Angeles, California. May 1, 2021.

Gerard Miller | CNBC

Berkshire Hathaway’s operating income continued to rebound as its myriad of businesses from energy to railroads benefited from the economic reopening.

The conglomerate reported operating earnings of $6.69 billion in the second quarter, up 21% from $5.51 billion in the same period a year ago, according to its earnings report released on Saturday.

Overall earnings, which reflect Berkshire’s fluctuating equity investments, increased 6.8% year over year to $28 billion in the second quarter.

Chairman and CEO Warren Buffett kept buying back Berkshire shares aggressively instead of making sizable acquisitions. The company repurchased $6 billion of its own stock in the second quarter, bringing the six month total to $12.6 billion. Berkshire bought a record $24.7 billion of its own stock last year.

At the end of June, Berkshire’s cash pile stood at $144.1 billion, holding steady from last quarter’s level and still near a record despite the company’s massive buyback program.

The results came as the conglomerate’s stock wiped out all of its 2020 losses and hit a record high in the period. So far in third quarter, Berkshire’s B shares are up another 2%, bringing their year-to-date gain to over 23%.

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As economic activity continues to grind back to life from the pandemic with more commodities and goods being shipped around the country, Berkshire’s Burlington Northern Santa Fe railroad stands to benefit. Earnings for railroads, utilities and energy jumped more than 27% from a year ago in the period to $2.26 billion, Berkshire said. The conglomerate’s other businesses, including homebuilders and a paint-maker, are also seeing a boost.

Though Berkshire acknowledged the quarterly results look stellar because they are bouncing back from a low base a year ago and the company is unsure of when results will truly return to normal.

“The COVID-19 pandemic adversely affected nearly all of our operations during 2020 and in particular during the second quarter, although the effects varied significantly,” Berkshire said in the earnings report Saturday. “The extent of the effects over longer terms cannot be reasonably estimated at this time.”

At the height of the Covid crisis, Berkshire experienced a drastic slowdown with its operating income falling 10% in the second quarter of 2020 year over year and tumbling 30% in the third quarter.

Berkshire said the risks from the pandemic still remain and could impact its results in the future.

“Risks and uncertainties resulting from the pandemic that may affect our future earnings, cash flows and financial condition include the ability to vaccinate a significant number of people in the U.S. and throughout the world as well as the long-term effect from the pandemic on the demand for certain of our products and services,” the conglomerate said.

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Health

Firms rising extra cautious about delta variant, earnings calls present

Companies growing more cautious about delta variant, earnings calls show

A sign describes entry restrictions at a JLL office in the Aon Center in Chicago, Illinois, USA on Thursday, June 24, 2020.

Christopher Dilts | Bloomberg | Getty Images

When the reporting season started in earnest in mid-July, few companies asked questions or mentioned the Covid Delta variant.

That changed as new Covid-19 cases increased and the Centers for Disease Control and Prevention changed their stance on masks for vaccinated people, according to a CNBC analysis of transcripts of calls.

Between July 13 and Thursday, 142 S&P 500 companies out of 410 that reported quarterly earnings mentioned the Delta variant by name or answered a question about it in their earnings calls. Only 15% of those mentions came before July 27 – the same day the CDC said fully vaccinated people should wear masks in areas with high indoor transmission rates. New Covid cases also rose steadily as the highly contagious Delta variant became the dominant strain of the virus in the USA

The US reports a seven-day average of more than 109,000 new cases as of August 5, nearly 28% more than a week ago, according to Johns Hopkins University.

For the most part, executives said their companies did not see any significant business impact with the rise in new cases.

Becton, Dickinson & Co., a medical device company, was one of the few to report changes in consumer behavior and told analysts that fewer elective surgeries have been performed in some US states in recent weeks due to the variant. For the week ending August 1, 72% of beds in intensive care units in the United States were occupied, according to Johns Hopkins data.

But some companies with a more global footprint say it’s a different story outside of the US.

“An uneven recovery from the pandemic and an increasing delta variant in many countries around the world have once again shown us that the road to recovery will be a winding road,” said Apple CEO Tim Cook at the company’s conference call on April 27th. July.

Booking Holdings, the parent company of Kayak and OpenTable, said bookings were down 22% in July compared to 2019, a bigger decrease than the 13% decrease in June.

“In Europe, we noticed reductions in overnight stays in several of our most important countries, including Germany, France and Italy, in July,” said Booking CFO David Goulden on Wednesday at the company’s conference call.

Other companies reported supply chain disruptions as Covid cases accelerated in Asia and Europe. For example, rail operator Norfolk Southern said the Delta variant is affecting its suppliers in Southeast Asia.

“We have a couple of factories that source parts from Southeast Asia and due to manufacturing issues there, they had to bring forward scheduled production shutdowns later this year,” said chief marketing officer Alan Shaw on the company’s conference call on July 28th. “And that has now had an impact on our production and our volumes.”

The Delta variant has also led some companies to issue more conservative projections, although most companies said they don’t expect any further lockdowns in the US.

Abiomed, a medical device maker, told analysts on its conference call Thursday that the lower end of its full-year revenue forecast sees “some persistent unevenness” from the variant, even though the company raised its outlook.

Beyond Meat, which is not part of the S&P 500, said restaurant operators are more conservative with their food orders due to the uncertainty created by the Delta variant, as well as work-related challenges.

“For us, the main feature of the third quarter, and our forecast is simply a lack of visibility,” said CEO Ethan Brown on Thursday.

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Roku Q2 2021 earnings

Roku Q2 2021 earnings

Roku CEO Anthony Wood speaks on stage at The Future of TV Streaming & Entertainment during the Tribeca X – 2021 Tribeca Festival at Spring Studios on June 18, 2021 in New York City.

Arturo Holmes | Getty Images

Roku stock fell more than 8% in after-hours trading Wednesday after reporting second-quarter earnings that exceeded expectations but showed a slowdown in streaming TV viewing since last quarter and tight hardware margins .

Here’s how the company fared compared to Refinitiv’s consensus estimates:

  • EPS: $ 0.52 per share versus an estimate of $ 0.13 per share
  • Revenue: $ 645 million versus an estimate of $ 618 million

The company said streaming hours were down 1 billion hours from the first quarter of 2021 and stood at 17.4 billion hours in the second quarter. The company cited consumers looking for more out-of-home entertainment activities like dining and travel in the second quarter due to the backlog and the easing of Covid-19 restrictions. But Roku’s streaming hours were still up 19% year-over-year, the company said.

In his letter to shareholders it was also stated that “tight delivery conditions for components and shipping restrictions” caused costs to continue to rise faster than expected.

“In the second quarter, we protected consumers from increased Roku player costs, which resulted in player gross margins going negative for the quarter,” the letter said.

The company’s total net sales increased 81% quarter-over-quarter to $ 645 million. Platform revenue for the quarter topped half a billion US dollars for the first time in the segment’s history, reaching US $ 532 million, driven by content and advertising diffusion.

Roku also commented on the advertising plans, in which advertisers spend part of their annual budget on TV advertising. The company said it made double the money it made last year, and that 42% of all advertisers who signed up to Roku in advance didn’t participate last year.

This is evolving.

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Commerzbank earnings q2 2021

Commerzbank earnings q2 2021

The Commerzbank AG logo sits on an illuminated sign outside a bank branch as the bank’s headquarters stand beyond at dusk in Frankfurt, Germany, on Monday, Feb. 5, 2017. 

Alex Kraus | Bloomberg | Getty Images

LONDON — Commerzbank on Wednesday reported a net second-quarter loss due to restructuring costs and an exceptional write-off to an outsourcing project.

The German lender saw a net loss of 527 million euros ($625.7 million) in the three months through to the end of June, roughly in line with analyst expectations of a net loss of 504 million euros.

This was after booking restructuring expenses of 511 million euros and a write-off for ending an outsourcing project of 200 million euros.

“We have kept our Common Equity Tier 1 ratio stable despite the high one-time write-off and restructuring expenses,” Bettina Orlopp, chief financial officer of Commerzbank said in a statement.

“This again proves that we have a very strong basis for the transformation, and it demonstrates that we are also able to deal with exceptional charges on our way to a sustainably profitable future.”

The German bank’s CET1 ratio, a measure of bank solvency, stood at 13.4% at the end of the quarter.

Other highlights of the quarter:

  • Revenues reached 1.86 billion euros, an 18.1% drop from a year ago.
  • Operating expenses stood at 1.7 billion euros, versus 1.53 billion a year ago.

Speaking to CNBC’s “Squawk Box Europe” on Wednesday, Orlopp said: “On the customer side we are satisfied, if you look at the numbers net commission income is 7% up year-on-year, so that’s a good result.”

She also said that the bank is aiming to achieve an operating profit this year, despite the latest results.

“We are targeting definitely an operating profit, I think the whole question is what happens with net income for the year – that’s tougher to predict,” Orlopp said.

Shares dropped about 4% shortly after bourses opened in Europe.

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Ford (F) earnings Q2 2021

Ford (F) earnings Q2 2021

DETROIT – Ford Motor raised its earnings forecast for the year after surprising earnings in the second quarter, saying demand for profitable new vehicles like the Ford Bronco SUV will boost its performance.

Sales were slightly below expectations due to the ongoing global shortage of semiconductor chips, which continues to affect the automaker’s production. Ford said Wednesday that supplies of the critical parts are improving, but production of about 700,000 vehicles was lost in the second quarter.

Here’s how Ford fared compared to Wall Street expectations based on Refinitiv’s average estimates.

  • Adjusted results: 13 cents per share, adjusted against a loss of 3 cents per share
  • Automobile sales: $ 24.13 billion versus $ 24.25 billion

Ford increased its adjusted earnings before tax expectations for the full year by approximately $ 3.5 billion to $ 9 billion to $ 10 billion. Sales volume is expected to increase by around 30% from the first to the second half of the year, driven by an improvement in market factors, according to the company.

“Our Q2 results were better than expected,” said CFO John Lawler on a call on Wednesday. “We are ‘spring loaded’ for growth.”

The “spring-loaded” comment was a topic touted in the automaker’s revenue, citing strong demand, including reservations, for newly launched and upcoming vehicles.

Ford’s recent vehicle presentations ranged from the electric Mustang Mach-E crossover and the redesigned F-150 to two new Bronco models, including the “big Bronco” SUV. It also revealed and took reservations for an all-electric version of its F-150 pickup truck, slated to arrive mid-next year, and a new little pickup truck called the Maverick.

The results were in line with Ford’s updated guidance. The company announced that its adjusted pre-tax profit for the second quarter would exceed expectations and be “significantly better than a year earlier,” while net income would be “significantly lower” than the same period of the previous year.

The company reported net income of $ 1.1 billion and an adjusted pre-tax loss of $ 1.9 billion in the second quarter of 2020.

In April, Ford projected its adjusted pre-tax profit for the year to be between $ 5.5 billion and $ 6.5 billion, including a negative impact of approximately $ 2.5 billion from semiconductor shortages. This impact was the top end of a previously incurred loss due to the problem.

Aside from Ford’s profits and any change in forecast, Wall Street analysts will be looking for updates on CEO Jim Farley’s Ford + turnaround plan, semiconductor die shortage and new product launches.

Ford’s shares have more than doubled since Jim Farley became CEO in October, including up more than 50% this year.

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Ryanair Q1 2022 earnings

Ryanair Q1 2022 earnings

LONDON — Low-cost airline Ryanair said Monday that it’s still facing a “challenging” environment and that it might finish the fiscal year “somewhere between a small loss and breakeven” as Covid-19 restrictions linger.

The Irish firm reported a 273 million euro ($322 million) loss for the period between April and June, as lockdowns meant most flights over the Easter period were canceled and with European nations being cautious over the easing of travel restrictions. The figure beat a forecast from analysts which was compiled by the company.

In comparison, the airline posted a 185 million euro loss over the same first-quarter period a year ago.

“Covid-19 continued to wreak havoc on our business,” Ryanair CEO Michael O’Leary said in a statement Monday.

At the same time, operating costs also increased, deteriorating the company’s balance sheet. Over the year to June, costs rose by 116%, driven mostly by fuel, airport and route charges.

However, O’Leary expects traffic to pick up in the coming weeks.

“We expect traffic to rise from over 5 million in June to almost 9 million in July, and over 10 million in August, as long as there are no further Covid setbacks in Europe,” he said.

However, the outlook is highly dependent on the pandemic and successful vaccination campaigns. According to Our World in Data, in the European Union 46% of the adult population is fully vaccinated against Covid-19. In the U.K., that number is 54.4%.

Ryanair shares are up 42% from a year ago. They traded 2.5% higher in early European deals Monday on the back of the results.

“Ryanair is still at the mercy of the virus and, although a recovery is materializing, the group noted that travel within Europe will be depressed for the foreseeable future,” Laura Hoy, equity analyst at Hargreaves Lansdown, said via email.

“We’re encouraged by the group’s progress, but it may have to toe the precarious line between low fares and high costs for some time.”

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Inventory futures maintain regular forward of an enormous week of Large Tech earnings

Stock futures hold steady ahead of a huge week of Big Tech earnings

Traders working on the New York Stock Exchange (NYSE) today, Wednesday, April 21, 2021.

Source: NYSE

Stock futures opened little changed after major averages closed the previous session with record closing highs and a busy week ago with earnings reports from the tech’s biggest hits.

The Dow Jones Industrial Average was down 5 points, or 0.01%. S&P 500 and Nasdaq 100 futures were down 0.03% and 0.01%, respectively.

In the previous session, the Dow rose 238.20 points, or 0.68%, to 35,061.55. The S&P 500 gained 1.01% to 4,411.79 and the Nasdaq Composite rose 1.04% to 14,836.99.

All three major averages closed at record highs last week after markets slumped earlier in the week on concerns about the spread of the Delta variant of Covid and the potential hindrance to economic recovery. Uncertainty caused bond yields to decline briefly and investors moved into tech stocks. Both bonds and stocks rallied quickly by the end of the week.

Tech stocks rose last week on better-than-expected earnings reports for the second quarter as well as the continued proliferation of the Delta variant. Twitter and Snap both rose Thursday after better-than-expected earnings reports for the second quarter. Twitter finished 3% higher on Friday while Snap shot up 24%.

One of the busiest weeks with results reports is on deck next week, and Tesla is kicking off after the closing bell. Last week, CEO Elon Musk said the automaker would likely accept bitcoin for vehicle purchases again.

Big tech giants Apple, Alphabet and Microsoft will be reporting on Tuesday, and Google, Facebook and Amazon will be reporting later in the week as well.

Investors will follow the Fed’s two-day monetary policy meeting starting Tuesday. The Federal Reserve Open Market Committee and Board of Governors are expected to issue a policy statement on Wednesday. On Thursday the Ministry of Commerce will publish the GDP data for the second quarter.

On Monday morning, the US Department of Housing and Urban Development will release new data on home sales and the Federal Reserve Bank of Dallas will release its monthly business activity index for Texas manufacturing.

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Health

Johnson & Johnson JNJ earnings Q2 2021

These are the most common side effects from J&J's

A Johnson & Johnson logo can be seen in front of a medical syringe and vial of coronavirus vaccine in this photo illustration.

Pavlo Gonchar | SOPA pictures | LightRakete | Getty Images

Johnson & Johnson said Wednesday that it expects to sell $ 2.5 billion of its Covid-19 vaccine this year, even as concerns about the effectiveness of the shot against the Delta variant mount.

When it released its financial results for the second quarter, the company also reported earnings and revenues that exceeded Wall Street’s expectations.

According to Refinitiv’s average estimates, J&J has performed as follows compared to Wall Street expectations:

  • Adjusted earnings per share: $ 2.48 per share versus an expected $ 2.27.
  • Revenue: $ 23.31 billion versus an expected $ 22.21 billion.

The company’s share price rose nearly 1% in pre-market trading, according to the report.

J & J’s pharmaceuticals business, which developed the Covid single-shot vaccine, had sales of $ 12.59 billion, up 17.2% year over year.

Jennifer Taubert, J & J’s Pharmaceuticals Chairwoman, said most of the company’s core businesses have returned to “pre-Covid levels” and the drug maker is seeing strength again in the US and Europe. The unit expects to continue seeing strong sales regardless of Covid variants or other “slip-ups” related to the pandemic, she said.

The company’s consumer division, which makes products like Neutrogena Face Wash and Listerine, had sales of $ 3.7 billion, up 13.3% from last year. The medical device business was $ 6.9 billion, an increase of 62.7%. That unit was hit hard last year when the pandemic forced hospitals to postpone elective surgeries and Americans stayed at home.

“We have all realized in the past 18 months the importance of good health and the need to choose an elective forever,” J & J’s chief financial officer Joseph Wolk told CNBC after the company released its earnings report on Wednesday .

Worldwide sales for the Covid vaccine were $ 164 million for the quarter.

The company has raised its profit and sales forecast for the year. J&J now expects full year earnings of $ 9.50 to $ 9.60 per share, compared to its previous guidance of $ 9.30 to $ 9.45 per share. The company expects revenue between $ 92.5 billion and $ 93.3 billion, compared to its previous forecast of $ 89.3 billion to $ 90.3 billion.

During a conference call, J&J executives said that given the uncertainty surrounding the need for booster vaccinations and the prevalence of highly communicable variants, it is too early to provide specific information on the outlook for the Covid vaccine for 2022 and beyond.

They said the company is expecting data from its study that will test two doses of its vaccine in the third or early fourth quarter of this year.

The financial results come a day after a new study found the J&J vaccine against the Delta and Lambda variants is much less effective than against the original virus. Researchers are now suggesting that a booster dose might be needed for J&J recipients.

The study, which has not yet been peer-reviewed, contradicts a report from the company that found the vaccine to be effective against Delta even eight months after vaccination, particularly against serious illness and hospitalization.

Delta, the dominant variant in the US, now accounts for an estimated 83% of infections in the country, according to the Centers for Disease Control and Prevention.

Wolk told CNBC on Wednesday that people should be “guarded” over the new study, adding that the results were based on blood tests in a laboratory and may not reflect the performance of the shot in a real-world setting.

“I think it’s probably best for anyone to reach out to health officials who have not yet recommended a booster, even for some shorter-duration vaccines,” he said.

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S&P 500 hits new file after sizzling inflation information, sturdy earnings

S&P 500 hits new record after hot inflation data, strong earnings

The S&P 500 inched out a new high on Tuesday as investors weighed a hotter-than-expected inflation report and a strong start to second-quarter earnings season.

The broad index traded 0.12% higher, reaching an intraday record. The Dow Jones Industrial average shed about 41 points, or 0.12%. The measure closed at a record just below 35,000 the day prior.

The Nasdaq Composite gained about 0.4% and also hit another intraday high as investors went back into their favorite tech stocks amid the competing market crosscurrents. Apple and Amazon each gained more than 1% and both are outperforming the market this month.

Inflation rose at its fastest pace in nearly 13 years, the Labor Department reported Tuesday. The consumer price index increased 5.4% in June from a year ago; economists surveyed by Dow Jones expected a 5% gain. Core CPI, excluding food and energy, jumped 4.5%, the sharpest move for that measure since September 1991 and well above the estimate of 3.8%.

“A white-hot June CPI print has the markets jittery this morning,” Cliff Hodge, chief investment officer at Cornerstone Wealth, said. “Moving forward we expect these inflation numbers to begin to cool. June 2020 was the absolute low for Core CPI during the pandemic shutdown, so the comparisons get tougher from here. Used car prices soared 45% year over year which is not likely to persist in coming months.”

The latest inflation data came after big banks and PepsiCo posted blowout second-quarter earnings reports. But with stocks at record highs and the Dow Jones Industrial Average just shy of 35,000, expectations likely ran higher than the official estimates reflected.

JPMorgan Chase shares dipped even after posting second-quarter earnings of $11.9 billion, or $3.78 per share, which exceeded the $3.21 estimate of analysts surveyed by Refinitiv.

Banks set aside billions of dollars for loan losses amid the pandemic, but have been releasing those reserves as consumers performed better than expected. JPMorgan released $3 billion in loan loss reserves after taking just $734 million in charge-offs. That gave the firm a $2.3 billion benefit, allowing the bank to top earnings expectations. Investors may be giving less credit to JPMorgan’s earnings beat due to this loan loss reserve release.

Goldman Sachs also shares edged lower after the firm reported second-quarter earnings of $15.02 per share, topping analysts’ expectation of $10.24 earnings per share. The bank posted its second-best ever quarterly investment banking revenue as a rush of IPOs hit Wall Street last quarter.

PepsiCo shares added more than 2% after the company crushed estimates for its second-quarter earnings and revenue, fueled by returning restaurant demand. The drink and snack giant also raised its forecast.

Meanwhile, shares of Boeing fell more than 3%, weighing on Dow sentiment, after the plane maker cut 787 Dreamliner production following the detection of a new flaw.

Overall earnings reports are expected to be stellar for the second quarter over the coming weeks with profit growth estimated at 64% year-over-year for the quarter, according to FactSet. That would be the biggest quarterly profit increase since 2009.

Banks’ earnings are expected to more than double for the second quarter, with an estimated 119.5% estimated year-over-year growth rate, according to analysts polled by FactSet.

In the regular trading session on Monday the Dow rose 126.02 points to close just below 35,000. The blue-chip measure is up 14% this year. The S&P 500 and Nasdaq Composite gained 0.3% and 0.2%, respectively, to record closes.

“High expectations for earnings and each companies’ forward guidance will push markets higher or disappointment may create a small pullback in equity markets,” said Jeff Kilburg, chief investment officer at Sanctuary Wealth. “Eyes will be on the major banks to set the tone for the next few weeks of earnings.”

Bank of America, Citigroup, Wells Fargo and Morgan Stanley all ended Monday higher as well. They will report their earnings later in the week.

Federal Reserve Chairman Jerome Powell is scheduled to appear in front of Congress Wednesday and Thursday to provide an update on monetary policy. He has maintained that the Fed’s easy policies will remain intact until there’s more progress on its employment and inflation goals.