US close: Stocks mixed as investors look to Fed, earnings

dl amazon warehouse distribution delivery shopping online — AmazonSharecast photo / Josh White

Wall Street trading closed mixed but little changed on Monday, as July began to draw to a close with another five days of corporate earnings, as well as a Federal Reserve decision later in the week.

At the close, the Dow Jones Industrial Average was up 0.28% at 31,990.04, as the S&P 500 added 0.13% to 3,966.84 while the Nasdaq Composite slipped 0.43% to 11,782.67.

The Dow closed 90.75 points higher on Monday, taking a bite out of losses recorded in the previous session.

“Recent risk-on moves appear to be on thin ice as markets gear up for another bout of earnings and a crucial Fed rate decision,” said IG senior market analyst Joshua Mahony.

“As we have seen with the ECB and BoC, central banks are happy to push rates faster than most expect, with governors seeking to act swiftly before recessionary pressures kick in.

“Thus, while markets currently attribute a mere 10% chance of a 100-basis point move, recession expectations do raise the possibility that Powell opts to front-run future hikes to the benefit of the dollar.”

The week's primary focus looked set to remain on earnings, with second-quarter updates due from the likes of Amazon, Apple, and Microsoft throughout the course of the week, while Alphabet, Timberland, and Whirlpool were due to report after the closing bell on Monday.

Traders were also holding out for an update from the Federal Reserve on Wednesday following its two-day policy meeting, with economists widely expecting the central bank to announce a three-quarter point interest rate hike.

GDP data would also follow a day later.

In terms of Monday's economic headlines, the Chicago Federal Reserve's national activity index printed at -0.19 in June, flat month-on-month after May's print was downwardly revised and remaining at low levels not seen since February 2021.

Meanwhile, the three-month moving average, which aims to provide a more consistent picture of national economic growth, decreased to -0.04 from +0.09 for the first negative reading in two years.

In equities, self-destructing social message specialist Snap slipped 0.1% on the back of its disappointing earnings last week alongside a warning over the likelihood of falls in digital advertising spending given the worsening economic outlook.

Among its internet peers, Amazon was down 1.05% and Facebook owner Meta Platforms was off 1.55%.

Energy plays featured on the upside, meanwhile, with Chevron gaining 2.98% as oil prices rose, while Marathon Oil jumped 6.57% and Occidental Petroleum added 5.49%.

Reporting by Josh White at Sharecast.com. Additional reporting by Iain Gilbert.

Dow Jones - Risers

Chevron Corp. (CVX) $148.48 2.98%
Travelers Company Inc. (TRV) $159.98 2.28%
Caterpillar Inc. (CAT) $181.81 1.79%
Unitedhealth Group Inc. (UNH) $529.47 1.55%
Dow Chemical Co. (DOW) $51.58 1.44%
Amgen Inc. (AMGN) $248.72 1.13%
Coca-Cola Co. (KO) $62.19 0.97%
Verizon Communications Inc. (VZ) $44.76 0.70%
Procter & Gamble Co. (PG) $143.99 0.68%
American Express Co. (AXP) $153.75 0.51%