© Reuters. US STOCKS-S&P trades near flat as Citigroup results weigh on bank stocks
* Boeing (NYSE:) drops on report MAX groundings could extend to 2020
* Symantec tumbles on report of end to Broadcom deal talks
* Healthcare shares gain on Gilead investment
* Dow flat, S&P flat, Nasdaq up 0.18% (Updates to late afternoon New York trade, changes byline, adds NEW YORK to dateline)
By April Joyner
NEW YORK, July 15 (Reuters) – The benchmark S&P 500 index struggled for direction in choppy trade on Monday as earnings season began in earnest with a mixed quarterly report from Citigroup Inc (NYSE:) C.N .
The bank reported a better-than-expected profit but also a decline in interest margins. Citigroup shares erased early losses in afternoon trading and were last up 0.3%. of S&P 500 banks .SPXBK – including JPMorgan Chase & Co (NYSE:) JPM.N , Goldman Sachs Group Inc (NYSE:) GS.N and Wells Fargo (NYSE:) & Co WFC.N , set to report results on Tuesday – fell 1.0% in the wake of Citigroup’s results.
Financial shares , which dropped 0.6%, weighed most heavily on the S&P 500 among its 11 major sectors.
Second-quarter earnings start in earnest this week and analysts expect S&P 500 companies to report a 0.3% fall in profit, which would be the first quarterly drop in three years, according to Refinitiv IBES data.
U.S. stocks will likely be muted until more results come in, said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York. The three main indexes ended last week at record closing highs as dovish comments from Federal Reserve Chairman Jerome Powell bolstered hopes that the central bank would deliver its first interest rate cut in a decade later this month.
“It’s definitely a wait-and-see environment,” Pursche said. “If (results) are better than expected, then we can see another leg up.”
The Dow Jones Industrial Average rose 10.33 points, or 0.04%, to 27,342.36, the S&P 500 lost 0.02 points, or -0.00%, to 3,013.75 and the Nasdaq Composite added 14.62 points, or 0.18%, to 8,258.77.
Gains in healthcare and technology shares offset losses in financial stocks. A 2.8% rise in Gilead Sciences Inc shares helped boost the S&P 500 healthcare index, as the drugmaker said it would invest $5.1 billion in a major expansion of its partnership with biotech Galapagos NV . and Dow heavyweight Boeing Co BA.N slipped 1.0% following a Wall Street Journal report https://www.wsj.com/articles/boeing-737-max-grounding-could-stretch-into-2020-11563112801 on Sunday that its 737 MAX jet could stay grounded until early 2020.
Symantec Corp shares tumbled 11.8%, the biggest percentage drop among S&P 500 companies, after a report that the cybersecurity company and Broadcom Inc have ceased deal talks. Broadcom shares rose 1.4%. of paper packaging companies Westrock Co WRK.N , Packaging Corp of America PKG.N and International Paper Co IP.N shed between 1% and 3% after a downgrade from KeyBanc, which cited risks from a further fall in containerboard and pulp prices. issues outnumbered advancing ones on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.21-to-1 ratio favored decliners.
The S&P 500 posted 63 new 52-week highs and two new lows; the Nasdaq Composite recorded 72 new highs and 55 new lows.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.