Nasdaq, tech shine as earnings pick up; Dow, S&P lag
The Nasdaq hit a record high on Monday ahead of a big week of technology earnings reports, while the S&P 500 and the Dow industrials lagged behind as losses in healthcare heavyweight Johnson & Johnson took a toll.
The major U.S. indexes are trading around record-high levels with a huge batch of second-quarter corporate reports due this week.
After the market closed, shares of Google parent Alphabet
The company`s report will be critical for supporting the run for the tech <.splrct> sector, which has outperformed all major groups this year.
"The tech sector is the leading sector so far this year,"said John Augustine, chief investment officer at Huntington Bank in Columbus, Ohio. “It’s going to be important that those FANG stocks set a positive tone and give positive guidance."
Of the other FANG stocks, Netflix
The Dow Jones Industrial Average <.dji> fell 66.9 points, or 0.31 percent, to 21,513.17, the S&P 500 <.spx> lost 2.63 points, or 0.11 percent, to 2,469.91 and the Nasdaq Composite <.ixic> added 23.05 points, or 0.36 percent, to 6,410.81.
Tech and financials <.spsy> were the only two of the 11 major S&P sectors to finish in positive territory.
Johnson & Johnson
The market`s run to record highs, including a 10.4 percent rise for the S&P 500 in 2017, has left equities relatively expensive and investors counting on earnings to justify the valuations. The S&P 500 is trading at around 17.7 times earnings estimates for the next 12 months, well above their long-term average of 15 times.
With more than one-fifth of the S&P 500 having reported results, earnings are now expected to have climbed 8.8 percent in the second quarter, up from a projection of an 8-percent rise at the start of the month, according to Thomson Reuters I/B/E/S.
This week alone, 190 S&P 500 companies are expected to report quarterly results.
“There is a lot of earnings coming out this week, so some people may just be sitting on the sidelines with a wait-and-see approach," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “There’s a lot of anticipation about this earnings season.”
In other earnings news, Halliburton
Investors are also looking ahead to the Federal Reserve`s post-meeting statement due on Wednesday for clues about the future path of interest rate hikes.
Declining issues outnumbered advancing ones on the NYSE by a 1.27-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favored advancers.
About 5.5 billion shares changed hands in U.S. exchanges, below the 6.1 billion daily average over the last 20 sessions.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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