U.S. Stocks End Flat As Investors Take Breathers
New York (AFP) – U.S. stocks Monday ended little changed as investors took a breather after last week’s hefty gains.
The Dow Jones Industrial Average fell 7.45 points (0.05 percent) to 15,392.20.
The broad-based S&P 500 increased 0.16 (0.01 percent) to 1,744.66 while the tech-rich Nasdaq Composite Index tacked on 5.77 (0.15 percent) at 3,920.05.
Monday’s tepid performance came on the heels of last week’s rally following a U.S. budget deal late Wednesday that ended a partial government shutdown and an agreement on the debt ceiling that averted a default. All three stock indices ended the week solidly higher, with the S&P 500 notching a new record.
“Obviously the market has made some nice gains,” said Peter Cardillo, chief market economist at Rockwell Global Capital. Stocks “will probably pull back a little bit from an overbought situation.”
Cardillo said that so far the quarter’s earnings reports have exceeded expectations, but he cautioned that revenue growth remains weak.
Investors are looking ahead to Tuesday’s release of September jobs data, which had been delayed from October 4 due to the partial government shutdown.
Dow component McDonald’s fell 0.6 percent after third-quarter results showed weak performance in some regions, such as China, Japan and Australia. The company said the currently restrained economic environment “continues to pressure results.”
General Electric jumped 2.3 percent after some positive analyst reactions to Friday’s earnings report. Citi added the industrial giant to its “U.S. Focus List,” citing “lots” of near-term catalysts, such as the company’s bullish comments on profit margins.
AT&T, also in the Dow, jumped 1.8 percent after announcing a $4.9 billion deal with Crown Castle related to the sale of 600 AT&T wireless towers and the leasing of 9,100 other towers. Crown Castle fell 1.7 percent.
Tech icon Apple rose 2.5 percent ahead of a Tuesday San Francisco event that is expected to launch new iPad devices.
Another tech heavyweight, Facebook, dipped 0.7 percent after suffering a technical glitch that prevented some of its 1.15 billion users from posting status updates. Facebook acknowledged a “brief” outage and said it had been resolved.
Bond prices fell. The 10-year Treasury rose to 2.62 percent from 2.59 percent Friday, while the 30-year increased to 3.68 percent from 3.66 percent. Bond prices and yields move inversely.