Investors have taken their time until more solid earnings reports are posted before the across-the-board stock rally may be resumed.
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“To me I think we’ve successfully transitioned from the global macro to the global micro”, said Art Hogan, chief market strategist at Wunderlich Securities.
Of the companies that have reported earnings so far, 70 percent have reported earnings above analyst expectations, above the 63 percent average beat rate since 1994.
CHINA WOBBLES: Plunging stock markets appear to have stabilized at least temporarily following a massive government intervention.
Gold weakened, dropping to the lowest level in five years, triggered by selling in Shanghai on Monday and a lack of liquidity. Oil prices fell on signs of a growing glut in refined products to pull the S&P energy index down 1.3 percent. The Standard & Poor’s 500 index added 1.64 points, or 0.1%, to 2,128.28.
The Nasdaq Composite Index ended at a record on Friday, its second in a row, gaining 0.9% to 5210.14.
And the outlook is not much better for the precious metal, with the US Federal Reserve Chair Janet Yellen’s repeated comments that she expects the central bank to lift interest rates this year. Morgan Stanley rose 1.4 percent in early New York trading.
Exelixis (NASDAQ:EXEL) leaped 48.7 percent to $5.82.
After initially showing a lack of direction, stocks have moved modestly higher over the course of the trading day on Monday.
IBM lost 3.6% in extended trade after its quarterly results on Monday. Germany’s DAX rose 1% and France’s CAC-40 added 0.8%.
Elsewhere on Monday, a tumble in gold prices prompted a sell-off in the shares of several mining firms.
Vivint Solar soared 44.8 percent to $15.76 after solar company SunEdison said it would buy the company in a deal valued at about $2.2 billion, including debt.
SECTOR VIEW: Six of the 10 sectors in the S&P 500 moved higher, led by technology stocks. That is slightly better than the 4.5% decline forecast by analysts heading into the reporting season. Brent crude, used to price worldwide oils, fell 5 cents to $57.05 in London after adding 18 cents to $57.10 in the previous session.
The choppy trading on Wall Street comes as traders are staying on the sidelines amid the lack of major U.S. economic data due to be released on the day. Apple, Yahoo and Microsoft are due later this week. In this case, we may fix spelling and punctuation.
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