The S&P 500 was little changed on Monday as a 4% drop in Micron weighed on the Nasdaq, while a Salesforce upgrade lifted the Dow. Investors now turn to big-bank earnings and September inflation data.
The S&P 500 traded down 0.1% on Monday, after the major averages posted a winning week and as investors looked ahead to a busy week of earnings results and inflation data. The Dow Jones Industrial Average traded up 222 points, or 0.4%, while the Nasdaq Composite was 0.3% lower.
Micron falls while Salesforce rises
Shares of Micron Technology dropped 4% and weighed on the Nasdaq, as investors assessed increasing competition from China's CXMT, which reported progress on a new chip structure.
In contrast, the Dow got a lift from a 2% rise in Salesforce shares after the stock received a double upgrade at Bank of America.
Earnings and inflation data take over
Wall Street is coming off a week in which the Nasdaq netted its fourth straight week of gains. The Dow and S&P 500 each posted their second positive week in three.
Investors hope third-quarter earnings will help stocks power through the Middle East turmoil. According to FactSet's John Butters, the S&P 500 is set to post 29.6% earnings growth in the quarter. Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo are all expected to post results this week.
Key inflation data is also due. The September consumer price index is due Wednesday. The producer price index follows Thursday.
Tim Holland, chief investment officer at Orion, told CNBC: "It’s going to be all on earnings". He added that even hotter-than-expected inflation prints would not be enough, in the market's view, to derail the Federal Reserve, which is largely expected to keep interest rates steady at its next meeting.
This week also marks four years since the start of the S&P 500's bull market. It began after a closing low of 3,577.03 in October 2022. The index has since more than doubled.
Source: CNBC
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