Tech boosts S&P, Nasdaq; healthcare weighs on Dow
Reuters
Published Feb 04, 2019 11:40AM ET
Tech boosts S&P, Nasdaq; healthcare weighs on Dow
By Medha Singh
(Reuters) - U.S. stocks edged higher on Monday boosted by technology shares ahead of Alphabet's results after the bell, but declines in healthcare and energy stocks kept gains in check.
A more than 2 percent rise from marquee companies such as Alphabet (NASDAQ:GOOGL) Inc, Apple Inc (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT) boosted the Nasdaq. The technology sector rose 1.13 percent.
Google-parent's quarterly report will round up a mixed bag of results from other FAANG stocks. Apple and Facebook Inc (NASDAQ:FB) posted better-than-expected quarterly results last week, while Netflix Inc (NASDAQ:NFLX) and Amazon.com Inc (NASDAQ:AMZN) gave downbeat current-quarter forecasts.
The energy sector fell 0.88 percent, the most among the seven major S&P sectors trading in the red, as oil prices fell more than 1 percent.
At current levels, the S&P 500 was about 8 percent away from its Sept. 20 record close and was helped recently by signs of progress in U.S.-China trade talks and as the Federal Reserve pledged to be patient with further interest rate hikes.
A stronger-than-expected jobs report on Friday underscored the strength in the domestic economy though concerns remained that a slowdown in the rest of the world could hurt U.S. earnings, with warnings from bellwethers including Caterpillar Inc (NYSE:CAT).
"We got through last week with the employment report and the Fed. I think the focus is more firmly on earnings this week," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"As the fourth quarter numbers are coming in, I think there is a concern around slowdown in the first quarter. Certainly the comparisons are going to be a lot tougher."
Nearly half of the S&P 500 companies that have reported fourth-quarter earnings so far, 71.4 percent beat analysts' estimates, according to IBES data from Refinitiv.
Since the earnings season kicked off three weeks ago, analysts' estimates for fourth-quarter profit growth have risen to 15.4 percent from 14.3 percent, but expectations for the first quarter of 2019 have dropped to 0.5 percent from 3.4 percent.
At 11:10 a.m. ET the Dow Jones Industrial Average was down 40.11 points, or 0.16 percent, at 25,023.78, the S&P 500 was up 1.49 points, or 0.06 percent, at 2,708.02 and the Nasdaq Composite was up 53.45 points, or 0.74 percent, at 7,317.32.
Allergan (NYSE:AGN) Plc dropped 3.37 percent after the FDA approved Evolus Inc's cheaper version of blockbuster Botox. Evolus jumped 20 percent.
Get The News You Want
Losses in UnitedHealth Group Inc (NYSE:UNH) and Johnson & Johnson (NYSE:JNJ) pulled the healthcare sector 0.98 percent lower and weighed on the blue-chip Dow and S&P 500.
In a bright spot, Ultimate Software Group Inc surged 19.51 percent after the HR software provider agreed to be bought by an investor group led by Hellman & Friedman in a $11 billion deal.
Advancing issues outnumbered decliners for a 1.03-to-1 ratio on the NYSE and a 1.48-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new lows, while the Nasdaq recorded 44 new highs and 10 new lows.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.