US stocks rise ahead of earnings season starting Thursday

Investing.com -- US stocks traded higher on Monday ahead of the third quarter earnings season, which begins Thursday morning with results from PepsiCo (NASDAQ: PEP).

Goldman Sachs analysts noted the market gained following a quiet weekend and an in-line ISM Services index reading.

The ISM Services index came in at 54.9, down 0.5 points from the previous month but largely matching consensus expectations. The report showed mixed results, with an increase in the employment component but declines in business activity and new orders. The prices paid component rose to its highest level since 2022, pressured by tariffs and energy prices.

Third quarter 2026 consensus estimates forecast earnings per share growth of 27% for the S&P 500, with the median stock growing EPS by 9%. This represents a slowdown from the second quarter's 33% year-over-year growth in S&P 500 EPS and 14% for the median stock.

Goldman Sachs analysts see room for the S&P 500 to outperform expectations again in the third quarter, though EPS growth is unlikely to exceed the second quarter pace.

PepsiCo reports Thursday morning, with analyst Bonnie Herzog expecting healthy mid-single digit international revenue growth balanced by slower US growth.

Delta Air Lines (NYSE: DAL) reports Friday morning. Analyst Catie O'Brien noted that rising jet fuel prices are pushing against price and capacity discipline in the airline industry.

Goldman Sachs refreshed its Americas Conviction List last week, adding five stocks: Amazon.com (NASDAQ: AMZN), Burlington Stores (NYSE: BURL), Huntington Ingalls Industries (NYSE: HII), Johnson Controls (NYSE: JCI), and Occidental Petroleum (NYSE: OXY).

You May Also Be Interested In

• vVardis files for US IPO showing net loss, revenue growth
• Purebread Brands to acquire Caffè Artigiano in a $7.7M share deal
• Clean Air Metals closes C$150,000 flow-through share placement