THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
The S&P 500 was 0.1% lower in late trading after closing Friday above the 5,000 level for the first time. The Nasdaq composite was down 0.3%. Earlier in the day, it was hovering just above its all-time closing high set in 2021.
The Dow Jones Industrial Average was up 112 points, or 0.3%, with less than an hour remaining in trading, and and on track to surpass its own record set last week.
Conditions are calm across markets, with yields also moving relatively little in the bond market. The next big event for the market could be Tuesday’s update on inflation across
In the meantime,
Trimble rose 4.7% after the technology provider reported stronger profit and revenue for the latest quarter than analysts expected. The company, whose products are used in the construction, mapping and other industries, shook off an earlier loss after it also gave a forecast for revenue over 2024 that fell short of Wall Street’s estimates.
Big companies in the S&P 500 have mostly been reporting better results than expected for the final three months of 2023. More than two thirds of the companies in the index have already reported their results, but several big names are still to come this upcoming week. They include Coca-Cola on Tuesday,
The smallest companies in the market, meanwhile, are still in the relatively early days of their profit reporting season. But they’ve been beating analysts’ expectations by even more than their big rivals, according to Bank of America strategists.
Worries have grown about how top-heavy the stock market has become, where the seven biggest companies have accounted for a disproportionate amount of the S&P 500’s rally to a record. If more companies aside from the group known as the “Magnificent Seven” can deliver strong profit growth, it could soften the criticism that the market has become too expensive.
Another worry for the market has been uncertainty about just how much danger lurks for the economy in the loans and other holdings banks have on their balance sheets that are tied to commercial real estate.
The widespread expectation, even among top
That’s why so much focus has been on
New York Community Bancorp’s stock has roughly halved since that surprise report, but it was doing better on Monday. It rose 1.3%.
An index measuring stock prices across the regional banking industry was also higher, up 2.9%.
In the bond market, yields were moving very little. The yield on the 10-year
The two-year
Inflation has been cooling enough that the
After earlier hoping cuts to rates could begin as soon as March, traders have since pushed their forecasts out to May or June. Reports showing the
If the Fed ends up making traders wait even longer than expected for rate cuts, it could upset stock prices that have already shot upward on the assumption of lots of good news, according to
"There isn’t a whole lot more than can really go right," he said.
In stock markets abroad, indexes were modestly higher in much of
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AP Business Writers
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