Stocks fall at start of busy earnings week
NEW YORK» Stocks mostly fell on Monday, and broad-market indexes inched modestly backward at the start of a busy week of corporate earnings reports and a meeting of the Federal Reserve. Technology stocks, though, added to their big gains for the year and helped push the Nasdaq composite to another record.
The Standard & Poor’s 500 lost 2.63 points, or 0.1 percent, to 2,469.91 after nine of the 11 sectors that make up the index logged losses. It marks the first three-day losing streak for the index in a month, although it’s still within a fraction of a percent of its record.
The Dow Jones industrial average fell 66.90 points, or 0.3 percent, to 21,513.17. The Nasdaq composite rose 23.06 points, or 0.4 percent, to 6,410.81.
The Nasdaq is up 19.1 percent this year, nearly double the rise for broader-market indexes as investors have massed into technology stocks in their search for strong growth as the global economy remains sluggish. Amazon.com and several other big-name tech companies are set to release their second-quarter results in coming days, part of a busy week where more than a third of S&P 500 companies are due to report.
Expectations are high: Analysts forecast tech stocks in the S&P 500 will report 16 percent growth in earnings per share, according to S&P Global Market Intelligence. That’s up from a forecast of 10.9 percent growth a month ago.
Monday’s steepest loss in the S&P 500 came from Hasbro, which sank $10.95, or 9.4 percent, to $105.00 despite reporting stronger-than-expected earnings for the latest quarter. Analysts said some investors may have been nervous after Hasbro cited some softness in its Brazil and U.K. markets.
In the commodities market, benchmark U.S. crude rose 57 cents, or 1.2 percent, to $46.34 per barrel. Brent crude, the standard for international oil prices, rose 54 cents, or 1.1 percent, to $48.60 a barrel.
Specialist Peter Giacchi, background center, handles the close of trading of Reynolds American on the floor of the New York Stock Exchange on Monday.