The major domestic equity indexes closed little changed in low volume on Monday as gains in utilities and consumer stocks offset declines in healthcare, with earnings news filtering out winners and losers across the board.
BlackRock fell 3.1 percent to $424.63 after the world’s largest asset manager’s quarterly earnings number came in below expectations.
After the closing bell, Netflix rose 8.5 percent to $175.45 following better than expected subscriber growth.
Procter & Gamble gained 0.5 percent to $87.55 as investor Nelson Peltz actively seeks a seat on P&G’s board.
Health stocks on the S&P 500 index slipped, partly weighed down by a delay in the Senate’s consideration of healthcare legislation after news over the weekend that Arizona Republican Senator John McCain would remain in his home state next week following a medical procedure.
The S&P health sector fell 0.3 percent while utilities gained 0.4 percent and the consumer discretionary sector rose 0.26 percent.
Amazon led discretionary sector gains with a 0.8 percent increase to $1,010.04. Meal-kit company Blue Apron fell 10.5 percent to $6.59 after an Amazon unit filed a trademark for a competing meal-kit service earlier this month.
Analysts’ are estimating an 8.2 percent rise in second-quarter earnings for the S&P 500 companies from a year earlier. This follows a robust first quarter when companies posted their best earnings since 2011, according to Thomson Reuters data.
Microsoft, IBM and Johnson and Johnson are scheduled to report results this week. Earnings will be closely watched to see if high valuations are justified in the face of tepid inflation and a recent patch of mixed economic data.
The S&P 500 has been trading at about 18 times earnings estimates for the next 12 months, compared with the long-term average of 15 times.
In what could be the slowest full session by volume this year, approximately 5.16 billion shares changed hands on the major domestic equity exchanges, as compared to a 6.51 billion daily average over the last 20 sessions.
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