US stocks closed flat on Monday, July 26, as investors seemed to have taken a break ahead of a busy earnings week with many big technology giants like Amazon, Google and Facebook are lining up for second-quarter reporting.
The S&P 500 was up 0.24% to 4,422.30. The Dow Jones rose 0.24% to 35,144.31. The NASDAQ Composite gained 0.03% to 14,840.71, and the small-cap Russell 2000 was up 0.33% to 2,216.92.
Investors eagerly waited for this week's earnings reports of several major corporate bigwigs besides the top technology behemoths. The money managers would also keep an eye on the Federal Reserve's two-day meeting starting Tuesday. Alphabet, Amazon., Facebook, and Apple were likely to report on Tuesday, while Tesla Inc. was expected to report after the markets close.
The Fed's meeting is anticipated to take stock of the monetary policies vis-a-vis the progress in the US economy, and it will be one of the key focuses of the action-packed week for the stock markets.
Meanwhile, consumer discretionary segments provided the most significant boost to the S&P 500, while energy and basic materials stocks topped the index segments. Eight of the 11 critical sectors of the index stayed in the green. However, healthcare stocks were the bottom movers.
Professional services provider Aon Plc (AON) said on Monday that it rescinded a US$30 billion merger plan with brokerage firm Willis Tower Watson Plc (WLTW) after the Justice Department opposed the move. It had filed a lawsuit against at a federal court last month, citing concerns over its likely market dominance. AON stock jumped 8.45%, while WLTW shares shed 9% after the news.
Toymaker Hasbro Inc.’s revenue increased by 54% to US$1.32 billion in the second quarter, it said on Monday. Its earnings were US$145.4 million or US$1.05 per share. The stock soared over 11% after the results were declared.
Chinese stocks continued to decline on Monday as China stepped up inspections on its large technology companies. Analysts believe it could be the worst decline since the 2018 Sino-US trade war. Shares of Alibaba Group (BABA) and Baidu Inc. (BIDU) dropped 6.97% and 5.54%, respectively, while the Beijing-based ride-hailing firm DiDi Global Inc. (DIDI) traded flat.
Tesla Inc. (TSLA) stock surged 2.23% ahead of its Q2 earnings.
In the energy sector, Exxon Mobil (XOM) gained 2.25%, Chevron Corp (CVX) rose by 2.01%, and Royal Dutch Shell plc (RDS-B) was up 3.32%. BP plc (BP) and TotalEnergies SE (TTE) advanced 3.21% and 2.95%, respectively. China Petroleum & Chemical Corporation (SNP) slide 1.22%.
In basic materials stocks, BHP Group (BHP) rose by 3.49%, Vale S.A. (VALE) gained 2.76%, and Rio Tinto Group (RIO) increased by 3.98%. Conversely, UnitedHealth Group Incorporated (UNH) decreased by 1.30%, Eli Lilly and Company (LLY) fell by 0.52%, and Abbott Laboratories (ABT) declined by 1.25%. AstraZeneca PLC (AZN) and Moderna Inc. (MRNA) dropped 2.34% and 3.86%.
In the crypto world, Bitcoin (BTC) jumped 14.67%, and Ethereum (ETH) gained 9.90%.
Copyright ©Kalkine Media 2021
Top performers on S&P 500 included Hasbro Inc (12.24%), Aon PLC (8.21%), Live Nation Entertainment Inc (5.75%), Carnival Corp (5.46%). On NASDAQ, top performers were Bit Digital Inc (109.69%), The9 Ltd (54.38%), Flora Growth Corp (49.67%), Bitfarms Ltd (31.31%). On Dow Jones, Dow Inc (3.16%), Intel Corp (2.47%), Chevron Corp (2.11%), Boeing Co (1.95%) were the leaders.
Top laggards on S&P 500 included Willis Towers Watson PLC (-8.98%), Twitter Inc (-4.18%), Moderna Inc (-3.72%), Lockheed Martin Corp (-3.34%). On NASDAQ, Iterum Therapeutics PLC (-44.20%), Sentage Holdings Inc (-29.08%), Tonix Pharmaceuticals Holding Corp (-28.53%), Nanovibronix Inc (-27.20%). On Dow Jones, Amgen Inc (-1.07%), UnitedHealth Group Inc (-1.00%), Nike Inc (-0.76%), Home Depot Inc (-0.50%) were the laggards.
Top volume movers were Apple Inc (17.12M), General Electric Co (11.96M), AT&T Inc (9.71M), Bank of America Corp (8.61M), Ford Motor Co (8.45M), Intel Corp (8.30M), Microsoft Corp (7.10M), Wells Fargo & Co (7.01M), Tyme Technologies Inc (26.77M), Bit Digital Inc (23.54M), Nanovibronix Inc (17.45M), SPAR Group Inc (15.04M), Xenetic Biosciences Inc (10.10M), JD.Com Inc (9.86M), Iterum Therapeutics PLC (9.45M), IMV Inc (7.54M).
Futures & Commodities
Gold futures were down 0.26% to US$1,797.20 per ounce. Silver increased 0.06% to US$25.247 per ounce, while copper rose 4.35% to US$4.5915.
Brent oil increased 0.71% to US$73.96 per barrel and WTI crude was up 0.17% to US$72.19.
The 30-year Treasury bond yields was up 1.03% to 1.944, while the 10-year bond yields increased 0.62% to 1.293.
US Dollar Futures Index decreased 0.31% to US$92.640.