Wall St mostly edges up as investors eye tech earnings, Fed meeting

NEW YORK (Reuters) – The three major U.S. stock indexes were mostly higher but near the little-changed mark on Monday as investors looked forward to earnings this week from heavyweight technology names and braced for a policy meeting by the Federal Reserve.

FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. REUTERS/Carlo Allegri/File Photo

All three major indexes hit a record high before losing momentum.

A two-day meeting of the Fed starts on Tuesday, and all eyes may be on whether the central bank expresses any new concerns about high inflation when it concludes its meeting on Wednesday.

In June, the Fed indicated it may start raising rates two times in 2023, which was sooner than previously expected.

Continued optimism about second-quarter earnings has helped offset recent concerns over the market impact of the Delta variant of COVID-19.

Tesla Inc, which rose 2.2%, is set to report earnings after the market close on Monday. Other heavyweights including Alphabet Inc, Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp, will report earnings through the week.

The vast majority of second-quarter earnings so far have beaten analysts’ expectations.

The Dow Jones Industrial Average rose 64.38 points, or 0.18%, to 35,125.93, the S&P 500 gained 6.11 points, or 0.14%, to 4,417.9 and the Nasdaq Composite dropped 4.15 points, or 0.03%, to 14,832.85.

U.S.-listed Chinese shares fell after Beijing last week announced new rules on private tutoring and online education firms, the latest in a series of crackdowns on the technology sector that have roiled financial markets.

E-commerce company Alibaba Group and search engine Baidu Inc, two of the largest Chinese stocks listed in the United States, fell.

Recent losses in Chinese stocks have been steeper than those recorded during the height of the Sino-U.S. trade war in 2018, mainly due to Beijing’s targeting of large technology firms.

Graphic: Chinese stocks under regulatory fire:

Weapons maker Lockheed Martin Corp fell 3.2% after a classified aeronautics development program caused the firm to miss profit estimates.

Advancing issues outnumbered declining ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.30-to-1 ratio favored decliners.

The S&P 500 posted 46 new 52-week highs and no new lows; the Nasdaq Composite recorded 75 new highs and 141 new lows.

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