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Boeing ( BA ) gains after offering new wage deal
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Humana climbs after report Cigna ( CI ) resumes merger talks
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114 S&P 500 companies to report results this week
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Indexes: Dow down 0.21%, S&P 500 down 0.07%, Nasdaq up
0.01%
(Updated at 09:45 a.m. ET/1345 GMT)
By Lisa Pauline Mattackal and Purvi Agarwal
Oct 21 (Reuters) -
Wall Street's main indexes were subdued on Monday as
investors took a breather after the previous week's rally,
awaiting results from major companies that could influence
whether markets would sustain their record highs or decline.
The Dow Jones Industrial Average fell 89.46
points, or 0.21%, to 43,186.45, the S&P 500 lost 4.31
points, or 0.07%, to 5,860.36 and the Nasdaq Composite
gained 3.00 points, or 0.01%, to 18,491.32.
Treasury yields rose, with the yield on the benchmark
10-year bond rising as high as 4.14%, pressuring rate-sensitive
stocks.
The Real Estate sector lost 0.8% amid broader
market declines. Consumer Discretionary was off 0.7%,
weighed by Tesla and Amazon.com ( AMZN ), which were
down 1.5% and 1.2%, respectively.
Of the so-called Magnificent Seven group of stocks, most
slipped. However, Nvidia ( NVDA ) and Alphabet gained
1.6% and 0.2%, respectively.
Most chip stocks also edged lower, sending the broader
Semiconductor index down 0.2%.
Boeing's ( BA ) 5% jump kept losses on the Dow in check
after news that workers could vote on a new deal to end a costly
five-week-long strike.
A broadly positive start to the quarterly earnings season
and upbeat economic data had propelled indexes higher over the
past two weeks. The three major indexes logged a sixth
consecutive week of gains on Friday, in their best winning
streak so far this year.
"What we're seeing today is a market that is basically
taking a bit of a breather and probably consolidating some of
those strong gains that we had last week," said Peter Cardillo,
chief market economist, Spartan Capital Securities.
"The market last week closed at record highs and despite
the run up in yields... remains resilient because of the fact
that the earnings are coming in better than expected."
Optimism around earnings persisted ahead of the 114 S&P
500 companies that are scheduled to report results this week,
including Tesla, Coca-Cola and Texas Instruments ( TXN )
. Of the companies that reported as of Friday, 83.1% beat
earnings estimates, according to data compiled by LSEG.
However, risks such as rising geopolitical tensions in the
Middle East, gains in Treasury yields and some volatility ahead
of the upcoming U.S. presidential election are pressuring
equities.
In broader markets, trades expected to perform well if
Republican candidate Donald Trump wins in November were catching
bids, as polls showed the former U.S. president's chances
improving.
"As the election date approaches, even small changes in
tight polls could drive seemingly erratic swings in market
sentiment," Danske Bank analysts said.
Spirit Airlines ( SAVE ) skyrocketed 33% after the company
reached an agreement to extend a debt refinancing deadline by
two months.
Humana gained 2.3% after a report said Cigna ( CI )
had resumed merger talks with the health insurer.
Home sales, flash PMI and durable goods reports are on the
data docket through the week, as is the Federal Reserve's Beige
Book.
Fed officials Neel Kashkari, Jeffrey Schmid and Mary Daly
are scheduled to speak on the day.
Declining issues outnumbered advancers by a 1.79-to-1
ratio on the NYSE, and by a 1.74-to-1 ratio on the Nasdaq.
The S&P 500 posted 29 new 52-week highs and no new lows,
while the Nasdaq Composite recorded 44 new highs and 12 new
lows.