Stock market today: Wall Street hangs around its records ahead of a big week for profit reports
Stock market today: Wall Street hangs around its records ahead of a big week for profit reports
NEW YORK (AP) — U.S. stocks are drifting around their all-time highs Monday, as momentum for Wall Street’s record-breaking rally cools a bit.
The S&P 500 was 0.1% lower in early trading, coming off its sixth straight winning week, its longest such streak of the year. The Dow Jones Industrial Average edged back 47 points, or 0.1%, from its own record that was likewise set on Friday, while the Nasdaq composite was 0.1% lower, as of 9:40 a.m. Eastern time.
Trading was mixed in markets around the world. Crude oil prices rose to regain some of last week’s sharp losses, while U.S. Treasury yields ticked higher and stock indexes were mostly lower in Europe and Asia.
On Wall Street, stocks have rallied to records in large part on optimism that the U.S. economy can make a perfect escape from the worst inflation in generations, one that ends without a painful recession that many investors had worried was nearly inevitable. And with the Federal Reserve now cutting interest rates to keep the economy humming, the expectation among optimists is that stocks can rise even further.
But critics are warning that stock prices look too expensive given how much faster they’ve climbed than corporate profits.
That puts pressure on companies to deliver growth in profits to justify their stock prices, and more than 100 companies in the S&P 500 are on deck this week to give details about how their performance during the summer. That includes such heavyweights as AT&T, Coca-Cola, IBM, General Motors and Tesla.
Tesla’s drop of 2% was one of the heaviest weights on the S&P 500. Its stock has been shaky recently, most recently sinking after an update on its much-anticipated robotaxi included fewer details than investors were hoping for.
Boeing is reporting its latest results on Wednesday. It rose 4.9% after it reached an agreement with the union representing its striking machinists on a contract proposal that would provide bigger pay raises and bonuses. The union’s members could vote Wednesday on the deal, which could end a costly walkout that has crippled production of airplanes for more than a month.
Spirit Airlines soared 35.4% after the carrier was able to extend the life of a contract with credit-card processors. Coming into the day, the airline’s stock had lost 91% in the year so far following the cancellation of its planned merger with JetBlue.
In the bond market, the yield on the 10-year Treasury rose to 4.13% from 4.08% late Friday.
This upcoming week doesn’t have many top-tier economic reports to move Treasury yields. A preliminary update will arrive on Thursday about U.S. business activity. The Bank of Canada will also announce its latest decision on interest rates Wednesday, where it could cut by half a percentage point.
In stock markets abroad, indexes were mixed in China after its central bank cut a couple lending rates. Lower rates can help reduce pressure on borrowers, particularly the property developers that have suffered following a crackdown on excessive borrowing several years ago. But any impact on market sentiment appeared to be short-lived.
Stocks rose 0.2% in Shanghai but fell 1.6% in Hong Kong. Chinese stocks have been zooming higher and lower in recent weeks. A slowdown for the world’s second-largest economy has raised expectations for big stimulus from the Chinese government and central bank, though doubts are still prevalent about how much effect they will have.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
By STAN CHOE
AP Business Writer
