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US stocks mixed amid strong corporate earnings and big-ticket takeover buzz

Spencer Platt/Getty Images

  • US stocks opened mixed on Monday as investors continue to digest better-than-expected corporate earnings.
  • Of the 54% of S&P 500 companies that have reported earnings so far, 88% beat profit estimates by a median of 6%.
  • Adding buzz to Monday’s trades was a merger deal between Spirit Airlines and Frontier and speculation about Peloton.
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US stocks opened mixed on Monday as investors continue to digest better-than-expected fourth-quarter earnings, and amid a flurry of deal talk.

Of the 54% of S&P 500 companies that have reported earnings so far, 88% beat profit estimates by a median of 6%, according to data from Fundstrat. Meanwhile, 75% of reported companies have beat revenue estimates by a median of 5%. 

A proposed $2.9 billion merger of equals between Spirit Airlines and Fronteir was announced, which if completed would make it the fifth largest airline in the US with a total market share of about 5%. Both budget airlines are focused on regional domestic flights.

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

  • S&P 500: 4,502.82, up 0.05%
  • Dow Jones Industrial Average: 35,066.35, down 0.7% (23.39 points)
  • Nasdaq Composite: 35,066.35, up 0.47%

More merger talk helped shares of beaten-down Peloton surge about 30% in early Monday trades amid speculation that the company is seeing interest from potential acquirers like Amazon and Nike. Wedbush analyst Dan Ives argued that Apple could swoop in and buy the connected fitness company in what would be its largest acquisition ever.

Bitcoin’s weekend rally continued on Monday, with the popular cryptocurrency reclaiming its 50-day moving average at $42,800. The run higher is giving bullish crypto investors hope that the recent bear market is nearing its end.

The volatility of bitcoin has led to losses for companies that added the cryptocurrency to their balance sheet. Tesla logged a $101 million impairment loss from bitcoin in 2021. 

West Texas Intermediate crude oil fell as much as 0.84% to $91.53 per barrel. Brent crude, oil’s international benchmark, fell as much as 0.56% to $92.75 per barrel.

Gold rose as much as 0.47% to $1,816.30 per ounce. The yield on the 10-year Treasury was flat at 1.92%.

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