MARKET SNAPSHOT: U.S. Stocks Retreat From Records Ahead Of Busy Week

Fed meeting, earnings from Apple, Trump speech, jobs report all in the next 5 days

U.S. stock benchmarks pulled back modestly for equities Monday as Wall Street investors found few fresh catalysts to lift equities further into record territory in 2018.

A retreat for the main indexes also comes as the yield on the benchmark 10-year Treasury rose to its highest yield since April 2014 in, and as the market awaits a key speech by President Donald Trump, an updated policy statement from the Federal Reserve on Wednesday, monthly jobs report on Friday and earnings from a batch of technology heavyweights throughout the week.

What are the main benchmarks doing?

The Dow Jones Industrial Average fell 14 points, or less than 0.1%, to 26,603, while S&P 500 index slipped 5 points, or 0.2%, at 2,868, while the Nasdaq Composite Index declined by 16 points, or 0.2%, at 7,489.

All three major indexes closed at record levels on Friday (http://www.marketwatch.com/story/fresh-records-likely-for-dow-sp-500-as-dollar-drops-anew-ahead-of-gdp-2018-01-26), with the Dow Jones Industrial Average soaring 223.92 points, or 0.9%, to 26,616.71. The S&P 500 index climbed 1.2% to 2,872.87,

Each gauge logged its fourth straight weekly advance.

What are the drivers for the markets?

After last week's gains, traders appeared to be pausing and awaiting a number of potentially market-moving events over the next five days.

Consumer spending climbed 0.4% in December, capping off the biggest increase in household buying since 2011 (http://www.marketwatch.com/story/consumer-spending-hits-6-year-high-as-americans-cut-savings-to-12-year-low-2018-01-29), below economists' forecasts polled by MarketWatch for a 0.5% increase.

Meanwhile, the PCE index, or personal-consumption expenditures index, the Federal Reserve's preferred inflation gauge, edged up 0.1% in December. The closely followed "core" rate that strips out food and energy rose 0.2%. The rate of inflation over the past year slipped to 1.7% from 1.8%, however. The core rate, stripping out volatile food and energy prices, was flat at 1.5%.

Wall Street has been watching sluggish inflation for signs of normalization, which could prompt the Fed to increase interest rates faster than the three anticipated in 2018.

Plus:U.S. economy to keep on truckin' in early 2018 despite cold snap, hiring drop-off (http://www.marketwatch.com/story/us-economy-keeps-on-truckin-in-early-2018-despite-cold-snap-hiring-dropoff-2018-01-21)

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

As well, the Fed will announce the outcome of its two-day meeting, the last for departing Chairwoman Janet Yellen, on Wednesday. The market isn't counting on an interest-rate hike this month, but has penciled one in for March (http://www.marketwatch.com/story/fed-to-take-a-step-toward-a-march-interest-rate-hike-2018-01-26).

The State of the Union address from President Trump will command attention on Tuesday, as investors look out for any more rhetoric on trade, after he last week announced tariffs on Chinese solar panels and South Korean washing machines (http://www.marketwatch.com/story/trump-tariff-targets-say-american-consumers-will-end-up-paying-the-price-2018-01-23). In an interview on Sunday, Trump hinted at retaliation against the European Union (http://www.marketwatch.com/story/trump-threatens-very-big-trade-retaliation-against-eu-2018-01-28) over a "very unfair" trade policy with the U.S.

Finally, 125 S&P 500 companies are expected to report this week, including Apple Inc.(AAPL), Google-parent Alphabet Inc. (GOOGL) and Amazon.com Inc. (AMZN) on Thursday, as well as Facebook Inc. (FB) and Microsoft Corp.(MSFT) on Wednesday.

Read: Apple earnings: Forget taxes and batteries, the $1,000 iPhone X remains the story (http://www.marketwatch.com/story/apple-earnings-forget-taxes-and-batteries-the-1000-iphone-x-remains-the-story-2018-01-26)

Plus: Earnings previews for Facebook (http://www.marketwatch.com/story/facebook-earnings-how-will-news-feed-changes-impact-revenue-2018-01-26), Alibaba (), AMD (http://www.marketwatch.com/story/amd-earnings-mining-for-crypto-gold-more-spectre-details-2018-01-26) (http://www.marketwatch.com/story/amd-earnings-mining-for-crypto-gold-more-spectre-details-2018-01-26) and McDonald's (http://www.marketwatch.com/story/mcdonalds-earnings-1-2-3-dollar-menu-should-give-same-store-sales-a-boost-2018-01-26)

What are strategists saying?

"The losses we're seeing ahead of the open are only marginal, particularly compared with Friday's moves," said Craig Erlam, senior market analyst at Oanda, in emailed comments.

"It's going to be another important week for U.S. markets, with almost a quarter of the S&P 500 reporting fourth-quarter earnings, the first Fed meeting of the year and the jobs report on Friday. With this in mind, a small pullback from record highs this morning seems quite reasonable."

Which stocks look like key movers?

Aerospace giant Lockheed Martin Corp. (LMT) reported profit and revenue that were better-than-expected, helping push its shares up by 0.4%.

Avon Products Inc.(AVP) jumped 5.6% after news a group of activist investors is trying to push the seller of beauty products to find a buyer (http://www.marketwatch.com/story/activist-investors-push-avon-to-seek-a-sale-2018-01-28).

Dr Pepper Snapple Group Inc. (DPS) soared 24% after a merger deal with Keurig Green Mountain was announced early Monday.

Apple shares fell 1.8% in premarket on a report in the Nikkei Asia Review (http://www.marketwatch.com/story/apple-stock-drops-after-report-of-iphone-x-production-cut-2018-01-29) that the company plans to cut its iPhone X production target for the March quarter, half of what was expected a month ago.

Telecom companies such as AT&T Inc.(T), Verizon Inc.(VZ) and T-Mobile USA Inc.(TMUS) could be active following reports that the Trump administration wants to nationalize next-generation, high-speech 5G wireless networks to prevent China spying on U.S. mobile traffic (http://www.marketwatch.com/story/trump-administration-weighs-building-us-5g-network-to-counter-china-2018-01-29).

What are other assets doing?

After tumbling 1.7% last week, the ICE U.S. Dollar Index stabilized somewhat on Monday, trading modestly higher, while gold futures pulled back.

Read: Chart watchers see 'a chance to play a dollar rebound' (http://www.marketwatch.com/story/chart-watchers-see-a-chance-to-play-a-dollar-rebound-2018-01-29)

Oil futures slipped (http://www.marketwatch.com/story/us-crude-climbs-as-brent-slips-but-supply-worries-may-prove-a-drag-2018-01-29). Chip makers were driving gains for European stocks (http://www.marketwatch.com/story/chip-makers-lead-european-stocks-higher-after-ams-reports-252-jump-in-revenue-2018-01-29), while Asian markets closed mixed (http://www.marketwatch.com/story/strengthening-semiconductor-stocks-boost-asian-markets-2018-01-28).

Bitcoin prices were gaining altitude above $11,000 to kick off the week.

See:Bitcoin prices tumble; Japan cracks down on Coincheck after hack (http://www.marketwatch.com/story/bitcoin-prices-tumble-japan-cracks-down-on-coincheck-after-hack-2018-01-29)

(END) Dow Jones Newswires

January 29, 2018 09:45 ET (14:45 GMT)