Earnings Season Kicks Off with Big Banks 13/10/2026
Market Wrap
U.S. stocks ended mixed Monday as investors positioned for a busy week of corporate earnings and inflation data, following gains across the major indexes last week.
The S&P 500 slipped 0.06% to 7,807.24, while the Nasdaq Composite fell 0.44% to 27,245.90. The Dow Jones Industrial Average outperformed, gaining 196 points, or 0.38%, to close at 51,850.55, marking its third consecutive session of gains.
Technology shares weighed on the Nasdaq, with Micron Technology (MU) dropping 3.9% amid concerns over growing competition from Chinese memory chipmaker CXMT. Meanwhile, Salesforce (CRM) gained 2% after Bank of America upgraded the stock by two notches, supporting the Dow.
Oil prices climbed Monday after renewed uncertainty surrounding a proposed Russia-Ukraine energy ceasefire. President Donald Trump announced the agreement over the weekend, but Ukrainian President Volodymyr Zelenskyy subsequently accused Moscow of violating it. West Texas Intermediate crude rose 2.06% to settle at $93.74 a barrel.
However, oil prices eased Tuesday morning as traders reassessed prospects for Russian diesel supplies and developments in the Saudi-Houthi conflict.
Treasury yields remain another key concern after reaching multidecade highs. The International Monetary Fund warned that mounting government debt and persistent inflation risks could trigger a disorderly surge in bond yields, potentially adding pressure to global financial markets.
Attention now turns to Tuesday's earnings from JPMorgan Chase (JPM), Goldman Sachs (GS), Citigroup (C), Wells Fargo (WFC) and UnitedHealth Group (UNH), all scheduled before the opening bell.
September inflation data later this week could provide another major catalyst for markets, particularly Treasury yields, after the U.S. bond market remained closed Monday for the Indigenous Peoples' Day holiday.
With bank earnings, inflation expectations and geopolitical developments in focus, investors face another potentially volatile trading week.
Optical Stocks Slide as AI Spending Concerns Grow
Optical networking stocks tumbled Monday as investors reassessed the outlook for artificial-intelligence infrastructure spending following cautious industry commentary and a strong rally in the sector.
Ciena (CIEN) plunged 10%, while Lumentum Holdings (LITE) dropped 9.8% and Coherent (COHR) declined 7.9%. Corning (GLW) lost 6%, Astera Labs (ALAB) fell 5.3%, and Marvell Technology (MRVL) slipped 3.4%.
The selloff followed a joint demonstration by Lumentum, Astera Labs and Corning at the Open Compute Project Global Summit, showcasing optical networking technology for AI data centers. Analysts suggested the event had already been priced into stocks, prompting profit-taking rather than fresh buying.
Concerns also intensified after Broadcom (AVGO) CEO Hock Tan identified access to capital as a major constraint on AI infrastructure expansion. His remarks raised questions about whether hyperscalers can sustain their aggressive spending plans, a critical driver of demand for optical components.
The declines followed extraordinary gains across the sector, with Lumentum and Coherent shares having surged more than 500% and 140%, respectively, over the past year.
Despite Monday's weakness, analysts emphasized that demand for optical networking equipment remains strong, with order books extending years into the future. The pullback may therefore reflect stretched valuations and profit-taking rather than a fundamental slowdown.
For investors, the selloff highlights growing sensitivity to AI capital spending expectations, as richly valued infrastructure stocks face increasing scrutiny over the sustainability of the investment boom.
Stocks on the Move
- Salesforce (CRM): Shares climbed 4% after Bank of America upgraded the software company two notches to buy from underperform, arguing that artificial intelligence could strengthen customer reliance on its products rather than disrupt its business.
- First Solar (FSLR): Shares gained 2.4% after Truist upgraded the solar manufacturer to buy from hold, citing strong long-term demand, industry growth prospects and the company's pricing power.
- Biogen (BIIB): Shares rose 2% after JPMorgan upgraded the biotechnology company to overweight from neutral, highlighting several clinical trial results expected in 2027 as potential catalysts.
- IREN (IREN): Shares jumped 5.3% following reports that the renewable-energy-powered data center operator secured a multiyear cloud computing agreement with Anthropic.
- SLM Corporation (SLM): Shares advanced 2% after Morgan Stanley upgraded the student loan provider to overweight from equal weight, citing attractive valuations following a 15% year-to-date decline.
- Mattel (MAT): Shares added more than 1% after Seaport upgraded the toymaker to buy from neutral, pointing to undervalued opportunities in the sector amid growing takeover speculation.
Watchlist: CRM, JPM, JNJ, UNH, GS, WFC, C, ACI, CRWD, MU, META, MSFT, MSTR, IREN
Key Economic Events Today
Economic Data (EST)
- 06:00 AM — USD NFIB Small Business Index
- 10:00 AM — USD Existing Home Sales
- 01:00 PM — USD FOMC Member Barkin Speaks
- 04:00 PM — USD FOMC Member Collins Speaks
Earnings
Before Market Open: JPMorgan Chase (JPM), Johnson & Johnson (JNJ), UnitedHealth Group (UNH), Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C), Domino's Pizza (DPZ)
After Market Close: AZZ Inc. (AZZ)
