Analyst: Hawkish central bankers weighing on equities
U.S. stock benchmarks climbed tepidly higher late-morning on Monday, as a pair of its more embattled sectors, technology and energy, drew early bidders.
In the near term, investors also braced for Federal Reserve Chairwoman Janet Yellen, who will deliver her semiannual monetary-policy report to Congress on Wednesday and Thursday. The start of second-quarter earnings season, launching in earnest on Friday with a roster of banks, also is in focus.
The Dow Jones Industrial Average added 11 points, or about less than 0.1%, at 21,424. The S&P 500 index traded up 4 points, or 0.2%, at 2,428, as a 0.7% rise in the tech sector, helped to lift the broad-market benchmark.
Meanwhile, the Nasdaq Composite Index climbed 15 points, or 0.2%, to 6,168, as the tech-heavy gauge added to its Friday rally following a solid reading of U.S. jobs (http://www.marketwatch.com/story/us-stock-futures-in-holding-pattern-ahead-of-top-tier-jobs-report-2017-07-07).
"All of the conversations right now are about earnings. The health-care bill and the tax bill all of that has been put in the back burner as the market moves on to the next catalyst, and what matters right now is earnings," said Mike Antonelli, equity sales trader at Robert W Baird & Co., referring to initiatives by Republicans to push through bills to cut corporate taxes and overhaul Obamacare.
Meanwhile, Abercrombie & Fitch Co. (ANF) shares lost a fifth of their value after the embattled retailer early Monday said it terminated a potential buyout of the company, and Best Buy Co. Inc.'s stock (BBY) tumbled 7.3% amid worries about heightened competition (http://www.marketwatch.com/story/best-buys-stock-tumbles-to-pace-sp-500-decliners-amid-concerns-over-amazon-effect-2017-07-10), highlighting the struggles of brick-and-mortar retailers.
Looking ahead to Friday, a trio of banks are expected to report quarterly results, including J.P. Morgan Chase & Co.(JPM), Wells Fargo & Co. (WFC), and Citigroup Inc.(C)
Last week, the Dow, S&P 500 and the Nasdaq Composite ended modestly higher. The three gauges have all tacked on 8% or more so far this year, but they're trading below their record peaks hit in June.
Investors are paying attention to whether oil prices can pull out of a slump--and whether the technology sector (XLK) can follow through on Friday's rally.
Read more:Stock market tracking tech rebound, oil slump ahead of big bank earnings (http://www.marketwatch.com/story/stock-market-tracking-tech-rebound-oil-slump-ahead-of-big-bank-earnings-2017-07-08)
"Central banks are likely to remain a key focus for investors this week, with the sudden hawkish shift among a number of them in recent weeks pushing bond yields higher and weighing on risk appetite," said Craig Erlam, senior market analyst at Oanda, in a note.
Economic news: A reading on consumer credit is slated to hit at 3 p.m. Eastern Time.
Stocks to watch: Shares in Tesla Inc.(TSLA) slid 0.4% after falling 13% last week (http://www.marketwatch.com/story/teslas-bad-week-gets-worse-as-elon-musks-credibility-takes-another-hit-2017-07-06), as the first Model 3 sedan rolled off the electric-car maker's assembly line (http://www.marketwatch.com/story/elon-musk-shows-off-first-model-3-to-roll-off-assembly-line-2017-07-09) over the weekend.
Amazon.com Inc. (AMZN) may be in focus as it is set to launch on Tuesday its "prime day" sales event. Shares of the company were up about 1.5%. The company also reported that a new fulfillment center in Orlando, Fla., would create 1,500 new jobs (http://www.marketwatch.com/story/amazon-to-create-1500-new-jobs-in-florida-with-new-fulfillment-center-2017-07-10), with benefits.
Barnes & Noble Inc. (BKS) slumped 4.7% as the company appointed Carl Hauch (http://www.marketwatch.com/story/barnes-noble-appoints-chief-operating-officer-2017-07-10), formerly chief operating officer at CityMD, as its vice president of stores.
Shares of Arconic Inc.(ARNC) rose 2.8% after the maker of aluminum products was upgraded at J.P. Morgan (http://www.marketwatch.com/story/arconic-stock-surges-after-jp-morgan-turns-bullish-2017-07-10), citing improved valuation
Household chemicals seller WD-40 Co.(WDFC) and IT company Barracuda Networks Inc.(CUDA) are due to report after the market's close.
Other markets: European stocks traded higher, after Asian markets (http://www.marketwatch.com/story/asian-markets-bounce-back-after-last-weeks-losses-2017-07-09) mostly closed with gains. Oil futures (http://www.marketwatch.com/story/oil-prices-rebound-as-some-see-last-weeks-selloff-as-overdone-2017-07-10) were lower, staying under pressure following last week's selloff.
Gold futures stepped lower, and a key dollar index was inching up.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
(END) Dow Jones Newswires
July 10, 2017 11:32 ET (15:32 GMT)