Written by Lisa Pauline Matakkal and Purvi Agarwal
(Reuters) – Wall Street’s major indexes rose on Monday as investors took a breather from the previous week’s gains and awaited earnings results from major companies that could influence whether the market holds record highs or falls. was in decline.
The Dow Jones Industrial Average fell 89.46 points, or 0.21%, to 43,186.45, the S&P 500 index fell 4.31 points, or 0.07%, to 5,860.36, and the Nasdaq Composite Index rose 3.00 points, or 0.01%, to 18,491.32.
U.S. Treasury yields rose, with the benchmark 10-year bond yield rising to 4.14%, putting pressure on interest-rate sensitive stocks.
The real estate sector fell 0.8% as the overall market declined. Consumer Discretionary fell 0.7%, while Tesla and Amazon.com fell 1.5% and 1.2%, respectively.
Most of the stocks in the so-called “Magnificent Seven” group fell. However, Nvidia and Alphabet rose 1.6% and 0.2%, respectively.
Most semiconductor stocks also fell slightly, with the Semiconductor Composite Index down 0.2%.
Boeing’s 5% rise capped losses in the Dow Jones Industrial Average on news that workers could vote on a new deal to end a costly five-week strike.
A generally strong start to the quarterly earnings season and strong economic data have pushed the index higher over the past two weeks. The three major indexes recorded their sixth straight week of gains on Friday, their best winning streak so far this year.
“What we’re seeing today is that the market is basically taking a bit of a breather and perhaps consolidating some of last week’s big gains,” said Peter Cardillo, chief market economist at Spartan Capital Securities. said.
“Even though the market closed at a record high last week and yields have soared…it remains resilient thanks to the fact that earnings have exceeded expectations.”
Optimism regarding business performance continued as 114 S&P 500 companies, including Tesla, Coca-Cola, and Texas Instruments, are scheduled to announce their financial results this week. Data compiled by LSEG shows that 83.1% of companies that reported as of Friday beat profit estimates.
However, risks such as rising geopolitical tensions in the Middle East, rising U.S. bond yields, and some volatility ahead of the next U.S. presidential election are weighing on stock prices.
With polls showing the former U.S. president’s chances improving, the broader market is piling up bids on deals that are expected to perform well if Republican candidate Donald Trump wins in November. . [MKTS/GLOB]
“As election day approaches, even small changes in tight polls can cause seemingly erratic fluctuations in market sentiment,” Danske Bank analysts said.
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Spirit Airlines soared 33% after reaching an agreement to extend its debt refinancing deadline by two months.
Humana rose 2.3% after reports that Cigna has resumed merger talks with a health insurance company.
Home sales, PMI updates, and durable goods reports will be included in the data tabular throughout this week, as will the Federal Reserve’s Beige Book.
Fed officials Neel Kashkari, Jeffrey Schmidt and Mary Daley are scheduled to speak that day.
Declining issues outnumbered advancing issues on the New York Stock Exchange by a ratio of 1.79 to 1 and on the Nasdaq by a ratio of 1.74 to 1.
The S&P 500 recorded 29 new highs and no new lows in 52 weeks, while the Nasdaq Composite Index recorded 44 new highs and 12 new lows.
(Reporting by Lisa Matakkal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai)