US stocks hover near record highs as retailers await earnings reports
The S&P 500 slipped slightly but stayed close to its all-time peak, while investors look to upcoming earnings from major retailers for clues on consumer spending.
U.S. equity markets remained near record levels on Monday, with the S&P 500 edging down 0.1% but staying close to its recent high. The Dow Jones Industrial Average fell 163 points, or 0.3%, and the Nasdaq composite was essentially unchanged.
Analysts note that earnings growth for S&P 500 companies is on track to rise about 50% year-over-year in the spring, the strongest pace in five years. Most firms have already reported, but big retailers such as Home Depot, Target and Walmart are slated to release results later in the week, offering insight into consumer behavior amid persistent inflation and a slowing labor market.
Retailers face headwinds as job cuts exceeded hires last month and household bills continue to rise. A recent retail-sales report showed lower spending in July compared with June, and industry CEOs are expected to comment on the trends.
Oil prices showed modest movement, with Brent crude up 0.4% to $88.87 a barrel, while Treasury yields rose slightly; the 10-year note climbed to 4.70% after stronger-than-expected manufacturing data from New York State. Higher yields have pushed mortgage rates toward their highest level in a year.
In corporate news, L3Harris Technologies dropped 3.2% after the defense firm announced that CEO Christopher Kubasik would step down as chief executive and chairman. > "Certain conduct by Kubasik that was not consistent with the values of the Company," the company said, adding that the conduct was unrelated to financial reporting or operations.
Alphabet slipped 0.7% despite Berkshire Hathaway increasing its stake in the Google parent, while Constellation Brands fell 4.8% after Berkshire disclosed it had sold its entire holding in the beer and wine maker.
Asian markets closed higher, with Tokyo’s Nikkei 225 up 0.7% after data showed Japan’s economy grew more slowly than expected in the April-June quarter. Hong Kong and Shanghai indexes rose over 1%.
Trading on Wall Street was relatively quiet as investors awaited further guidance from the retail sector and developments in the Iran-U.S. oil-shipping dispute.