By Stephen Culp
NEW YORK (Reuters) – Wall Street was subdued on Monday, with interest-rate sensitive momentum shares pulling the Nasdaq lower and U.S. Treasury yields dipping as investors braced for a week of high-profile quarterly earnings and closely watched economic data.
The benchmark S&P 500 and the Dow were little changed while Microsoft Corp and other megacaps pulled the Nasdaq into the red.
“People are unsure about what this week holds, especially when it comes to earnings,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “There’s a lot to be cautious about and today reflects that. There’s not a lot happening.”
Earnings this week include a spate of potential market movers, including tech and tech-adjacent Alphabet Inc, Microsoft Corp, Meta Platforms Inc and Amazon.com.
High-profile industrials General Motor Co, Boeing Co, Northrop Grumman and Caterpillar are also on deck.
On the economics front, a spate of housing data, industrial output and the Commerce Department’s first stab at first-quarter GDP will be capped on Friday by the closely watched and wide-ranging Personal Consumption Expenditures (PCE) report, which tracks income, spending and inflation.
The Dow Jones Industrial Average rose 14.36 points, or 0.04%, to 33,823.32, the S&P 500 lost 2.38 points, or 0.06%, to 4,131.14 and the Nasdaq Composite dropped 49.28 points, or 0.41%, to 12,023.17.
European stocks closed essentially unchanged ahead of potentially market-moving earnings reports, which include a stream of European banks aside from U.S. megacaps.
The pan-European STOXX 600 index lost 0.01% and MSCI’s gauge of stocks across the globe gained 0.02%.
Emerging market stocks lost 0.37%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.36% lower, while Japan’s Nikkei rose 0.10%.
U.S. Treasury yields fell as market participants appeared to grow increasingly jittery about the approaching debt ceiling deadline.
Benchmark 10-year notes last rose 17/32 in price to yield 3.509%, from 3.572% late on Friday.
The 30-year bond last rose 31/32 in price to yield 3.7225%, from 3.778% late on Friday.
The greenback weakened against a basket of world currencies as the euro gained strength and the yen fell ahead of the much anticipated Bank of Japan meeting.
The dollar index fell 0.46%, with the euro up 0.57% to $1.105.
The Japanese yen weakened 0.08% versus the greenback at 134.28 per dollar, while sterling was last trading at $1.2484, up 0.43% on the day.
Crude prices seesawed but turned higher later in the session on optimism over strengthening Chinese demand.
U.S. crude rose 1.14% to settle at $78.76 per barrel and Brent settled at $82.73, up 1.31% on the day.
Gold edged higher ahead of major economic data that would affect the Federal Reserve’s decision-making at next month’s monetary policy meeting.
Spot gold added 0.3% to $1,989.41 an ounce.