DXPE jumped 5.7 percent and Graham Corporation (GHM) matched that gain as industrial and defense stocks led a broad rally. MSC Industrial Direct (MSM) rose 3.8 percent, CACI International (CACI) climbed 4.9 percent, and Powell Industries (POWL) gained 4.2 percent.
The move reflects positioning ahead of two catalysts: Wednesday's Federal Reserve decision and earnings from roughly 36 percent of S&P 500 companies this week, including Amazon, Alphabet, and Microsoft. Money markets price a 90 percent probability the Fed holds rates steady.
Wall Street expects S&P 500 third-quarter earnings to grow 30 percent year-over-year. That earnings visibility—combined with falling Treasury yields reducing the discount rate on future cash flows—outweighed Middle East risks and lingering AI valuation concerns.
DXP trades on execution. The stock swung more than 5 percent 17 times over the past year, including a 17.8 percent drop 12 months ago after a profit miss, despite sales growth of 8.6 percent to $513.7 million that beat guidance. Today's pop signals conviction that the company's supply-chain exposure and industrial cycle positioning are clicking.
The Nasdaq rose 0.8 percent, the S&P 500 gained 0.7 percent, and the Dow increased 0.3 percent.
