Wall Street ends mixed as investors eye earnings
by onlysureshot.com |
Wall Street ended mixed on Monday as concerns about soft smartphone demand weighed on tech stocks and pulled the Nasdaq lower while earnings optimism protected against deeper losses.
Tech stocks dragged on both the S&P 500 and the Nasdaq ahead of a big week of earnings for the sector. Chipmaker shares dropped after the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd , cut its full-year revenue target due to softer demand for smartphones.
"Ultimately if these long-term interest rates continue to move higher, that's going to continue to be a stumbling block for markets and I think we'll continue to see markets trading down," said Massocca.
Earnings provided a bright spot, with 18 percent of the companies in the S&P 500 having reported, 78.2 percent of which have beat consensus estimates.
"By and large earnings have been very good, they continue to be supportive of the market," Massocca added.
Analysts expect earnings growth at S&P 500 companies of nearly 20 percent in the first quarter, the strongest showing in seven years, according to Thomson Reuters data.
Google parent Alphabet Inc was up slightly in volatile after-hours trading following its earnings release; the company reported a 73 percent jump in profits in the first quarter.
Quarterly results are expected this week from 181 S&P 500 companies, including technology heavy-hitters Facebook Inc , Microsoft Corp , Amazon.com Inc and Intel Corp .
The Dow Jones Industrial Average fell 14.25 points, or 0.06 percent, to 24,448.69, the S&P 500 gained 0.15 points, or 0.01 percent, to 2,670.29 and the Nasdaq Composite dropped 17.53 points, or 0.25 percent, to 7,128.60.
Of the 11 major S&P sectors, six ended the session in positive territory, with the biggest percentage gain coming from the Telecom index .
The Philadelphia Semiconductor index closed down 1.3 percent, posting its fourth straight session of declines on concerns of slowing smartphone demand.
Merck & Co Inc helped lift the healthcare sector, 2.4 percent following a Goldman Sachs upgrade to "buy."
Aluminium company stocks dropped as the United States opened the door to sanctions relief for Russian aluminium giant United Company Rusal Plc . Alcoa tumbled 13.5 percent and Arconic fell 5.2 percent, making it the biggest percentage loser on the S&P.