The S&P 500 was little changed on Monday as Micron's drop weighed on the Nasdaq and the Dow outperformed. Investors now face big-bank earnings and inflation data this week, while oil prices rose on doubts about a Russia-Ukraine energy ceasefire.
The S&P 500 traded around the flatline on Monday after the major averages posted a winning week. The Dow Jones Industrial Average traded up 114 points, or about 0.2%, while the Nasdaq Composite was down 0.2%.
Micron falls on Chinese competition
Micron Technology shares dropped 4% and weighed on the Nasdaq as investors assessed competition from China's CXMT, which reported progress on a new chip structure. The Dow, by contrast, got a lift from a 2% rise in Salesforce after a double upgrade at Bank of America.
Oil also moved. West Texas Intermediate futures advanced 2% to around $93 per barrel, and Brent crude gained 2% to trade at $106 per barrel. The rise came after President Donald Trump announced an energy ceasefire between Russia and Ukraine, then Ukrainian President Volodymyr Zelenskyy said Moscow had already violated it.
Earnings and inflation data loom
Wall Street enters the week coming off a winning week in which the Nasdaq netted its fourth straight week of gains. 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 report this week. September's consumer price index and producer price index are due Wednesday and Thursday, respectively, giving investors a read on inflation.
Managers' comments may matter more than the results themselves, given uncertainty over how businesses and customers are handling higher fuel and borrowing costs. The week also marks four years since the S&P 500's bull run began after a closing low of 3,577.03 in October 2022, and the index has more than doubled since.
Source: CNBC
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