Markets trend upward ahead of midterm elections, energy stocks lead sector gains

Stocks are moving higher in the final hour of trading on Monday, with the energy and communication services sectors among the biggest leaders.

Video Transcript

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SEANA SMITH: Well, let's get you up to speed on the market action and some of the gains that we're seeing as we kick off a new trading week. Dow not too far from the highs of the day. You can see it hovering just around the highs of the session within the last half an hour or so. Looking at the Dow, up just around 414 points.

S&P also holding onto gains, up nearly 1% in today's trading action. NASDAQ 100 also up just about 1%. That's a good-- that's good for a 106-point gain right now. Russell 2000, that small-cap index, also up just around 8/10 of a percent.

Taking a look at the action that we're seeing in the bond market, the 10-year yield actually pushing to the upside, you're seeing up just around five basis points to 4.21%. 30-year yield also gaining just a little bit, up just about six basis points. US dollar, though, the US dollar index pulling back just a bit this afternoon.

Taking a look at the sector action that we're seeing, it's pretty broad-based gains, only 3 of the 11 sectors in the red this afternoon. And gains being led by energy, communication services, and technology. Taking a look inside the Dow, some of the largest gains that we are seeing across the board coming from Microsoft, Microsoft up nearly 3% on the day, Walmart up another 1%, as well as UnitedHealth.

Taking a look at the NASDAQ 100, as we take a look at some of the larger cap tech names, a bit of a mixed picture. Tesla, though, in the red, hitting another 52-week low as we continue to see selling in this name, off just around 4%. I also want to draw your attention to Apple because it has been a mover that we have been keeping an eye on very closely in today's trading action. It has been in the red for most of the trading day, except just squeezing into the green for a couple of minutes within the last hour of trading. So certainly a name to watch here as we head into the final 60 minutes, Rachelle.

RACHELLE AKUFFO: Certainly, as you mentioned, Apple was under considerable pressure in the early part of the session today but relatively flat at the moment. And that's after warning sales could disappoint due to COVID-related production delays in China. Now, Foxconn, Apple's largest iPhone manufacturer, shut down its primary plant in Zhengzhou to manage a spike in COVID cases.

Now in a statement, Apple says iPhone production will continue, quote, "at a significantly reduced capacity." So expect delays between purchase and delivery of iPhones in the run-up to the key holiday shopping season, especially the new iPhone 14 Max and Pro models, 31 days versus a two-day lead time on the less expensive iPhones, that's according to JP Morgan's Samik Chatterjee. Now, there will also be 3 million fewer iPhone [? 14S ?] models produced than anticipated this year. Another worry demand also cooling for new iPhones.

Now, in a note published over the weekend, Goldman Sachs says China is still, quote, "months away from reopening," citing low elderly vaccination rates and high fatality rates among those who are unvaccinated. However, in a separate note, Goldman estimates a full reopening could bring a 20% rally in the Chinese equity market. Obviously still a long way from that point though.