Stocks turned mixed in afternoon trading on Wall Street on Monday as investors brace for another busy week of corporate earnings.
The S&P 500 fell 0.3% at 12:41 p.m. Eastern. Although the index was roughly split between winners and losers, declines by several tech giants, including Facebook, Google’s parent company and Microsoft, dragged down the overall index.
The Dow Jones Industrial Average fell 8 points, or less than 0.1%, to 35,080 and the Nasdaq fell 0.3%. Smaller company stocks bucked the downtrend and rose. The Russell 2000 edged up 0.1%.
Energy companies made solid gains. Chevron rose 1.8%.
Retailers, travel-related businesses and others that depend on direct consumer spending also gained ground. the earnings. Amazon rose 1.1% and Carnival 5.4%.
Losses at some major communications companies tempered gains elsewhere in the market. Facebook’s parent company, Meta, fell 4.3%.
Tech stocks, which have a strong impact on the broader market due to their outsized valuations, were mixed.
Bond yields have been relatively stable. The 10-year Treasury yield has remained at 1.93% since Friday evening.
Wall Street is coming off two weeks of gains after a January stumble that partly served as a “pressure relief valve,” said Mark Hackett, head of investment research at Nationwide.
“Some of the emotion that we had to deal with in the first weeks of the year started to subside,” he said. “You almost needed it; expectations were so high.
Investors are still measuring the impact of rising inflation on businesses and consumers while remaining cautious about the Federal Reserve’s plan to fight inflation. Investors will get another key inflation update on Thursday with the Labor Department’s consumer price report for January.
The Fed’s plan to raise interest rates to fight inflation. Investors anticipate the first hikes in March and are wary of the pace and quantity of rate hikes in 2022.
Investors have another busy week reviewing the latest corporate performance reports. Meat producer Tyson Foods rose 10.5% after reporting strong results.
Several major companies are on deck this week to report their results, including Pfizer on Tuesday and Walt Disney on Wednesday. Twitter and Coca-Cola will report on Thursday.
Outside of earnings, several companies gained traction on takeover news. Spirit Airlines jumped 12.6% after Frontier Airlines’ parent company agreed to buy the carrier in a deal worth $2.9 billion.
Peloton rose 16.5% following reports that the exercise bike and treadmill company is a takeover target for companies such as Nike and Amazon. The company has been on a roller coaster since the start of the pandemic. Its stock jumped more than 400% in 2020 as COVID-19 forced lockdowns and shifted the workout trend from the gym to home. He spent 2021 returning nearly all of those gains as businesses reopened and people began to return to gyms.
Stocks have been choppy this year for Peloton, particularly following reports in January that it was temporarily halting production of its connected fitness products amid slumping consumer demand. Activist investor Blackwells Capital has called on the company to remove CEO John Foley and consider selling the company just days after these reports.
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