US close: Stocks broadly flat as investors await tech earnings

dl wall street wall st new york city nyc ney york stock exchange nyse nasdaq dow jones industrial average djia trading us usa united states of america 2023120702241 — Sharecast graphic / Josh White

US stocks started the new trading week in subdued fashion, with markets rangebound ahead of hotly anticipated earnings reports from the likes of Microsoft, Meta, Amazon and Apple over the next few days.

The Dow finished the day down 0.1%, while the S&P 500 and Nasdaq rose just 0.1%.

“After disappointment from Tesla and Alphabet, there’s a lot riding on big tech updates this week. Investors want stellar results and anything less will be a disappointment that will undoubtedly lead to further sell-offs," said Danni Hewson, AJ Bell's head of financial analysis.

An upcoming meeting at the Federal Reserve on Wednesday was also likely keeping investors cautious, though no change in policy is expected just yet.

"With two more inflation and payroll reports due before September, there is little chance the Fed commits to a cut in September this far out," said Gennadiy Goldberg, head of US rates strategy at TD Securities.

"Powell and the statement would certainly hint that a cut is coming, but markets may view this as disappointing given investors are more than fully priced for September."

McDonald's outperforms

Shares in fast food giant McDonald's were up nearly 4% by the close despite posting quarterly revenue and earnings that fell short of expectations, as the company reiterated its guidance for the full year.

Insurance group Enstar fell sharply despite agreeing to be bought by investment firm Sixth Street in a $5.1bn deal. Liberty Strategic Capital, JC Flowers & Co and other institutional investors have also agreed to participate in the deal, which will see Enstar shareholders receive $338 per share in cash.

Energy stocks were performing badly as the price of oil declined, with Exxon and Chevron both in the red. WTI crude was down 1.6% at $75.92 a barrel – its lowest level in nearly four weeks.

Occidental Petroleum was also lower as investors reacted to nearly $1bn of asset sales, including disposing of its Delaware Basin assets to Permian Resources for $818m.

Dow Jones - Risers

McDonald's Corp. (MCD) $261.42 3.74%
Walt Disney Co. (DIS) $92.19 2.46%
Merck & Co. Inc. (MRK) $127.78 2.01%
Nike Inc. (NKE) $73.55 1.36%
Walgreens Boots Alliance, Inc. (WBA) $11.94 1.02%
Visa Inc. (V) $261.74 0.82%
American Express Co. (AXP) $247.86 0.81%
Home Depot Inc. (HD) $361.67 0.60%
Procter & Gamble Co. (PG) $169.93 0.48%
Microsoft Corp. (MSFT) $426.73 0.34%