Monday's Stock Market Open: Positive AT&T 3Q Earnings Send Stocks Higher; HSBC Misses Estimates

The S&P 500 hit a record high Monday as investors took heart as corporate earnings continued rolling in and anticipation built for a possible interest rate cut when the Federal Reserve meets in the next few days.

The S&P hit 3,043 before falling back to 3,038, up 16 points, at noon. The Dow Jones Industrial Average was trading 106 points higher at 27,065 while the Nasdaq Composite soared 77 points to 8,320.

President Trump tweeted his approval: "This is a big win for jobs, 401(k)s, and, frankly, everyone! Our country is doing great."

On the earnings front, AT&T (T) earnings beat estimates, reporting earnings of 94 cents a share, compared to 90 cents in the year ago quarter. Earnings were up 1.08% over last year.

HSBC (HSBC), Europe’s largest lender, announced it would overhaul its system after third-quarter profits missed estimates. The bank warned of significant future write-offs as it reported pre-tax profits were 18% below last year’s quarter at $4.8 billion on revenue of $13.36 billion, 3% below last year

“Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth. We are therefore accelerating plans to remodel them, and move capital into higher growth and return opportunities,” interim CEO Noel Quinn said.

Alphabet and T-Mobile also were scheduled to report earnings Monday.

In Europe, the European Union agreed to a Jan. 31 Brexit extension as British lawmakers squabbled over when to call a general election.

“The EU27 has agreed that it will accept the U.K.’s request for a new flextension until 31 January 2020. The decision is expected to be formalized through a written procedure,” European Council President Donald Tusk tweeted.

Parliament was set to vote on Prime Minister Boris Johnson’s proposal to call elections for Dec. 12. Liberal Democrats have proposed a Dec. 9 contest but Labour is refusing to back either proposal unless a no-deal Brexit is ruled out.

Global markets were higher.

In Asia, Hong Kong’s Hang Seng closed up 0.84% while Japan’s Nikkei 225 gained 0.3% and China’s Shanghai Composite added 0.85%. Australia’s S&P/ASX inched up 0.02%.

London’s FTSE closed up 0.19%, the German DAX gained 0.52% and the French CAC added 0.36%. The Stoxx Europe 600 was up 0.41%.

The British pound was up 0.26% at $1.2858 while the euro was 0.11% higher at $1.1092. The dollar index was off 0.04%.

Oil futures futures were lower. Crude was up 1.11% to $56.04 a barrel while Brent crude was off 1.08% to $61.35. Gold was lower but silver was higher.