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US STOCKS-Wall St muted as investors pause ahead of big corporate earnings
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US STOCKS-Wall St muted as investors pause ahead of big corporate earnings
Oct 22, 2024 12:58 PM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Boeing ( BA ) gains after offering new wage deal

*

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.

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