U.S. markets and stock exchange traded funds were stuck in sideways trading as investors waited on a busy week of corporate earnings ahead.
On Monday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.2%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was 0.2% lower and SPDR S&P 500 ETF (NYSEArca: SPY) was flat.
Market action remained relatively muted in recent weeks as investors tried to weigh positive data against a soft start to the year and potential weakness in the global economy, the Wall Street Journal reports.
Looking ahead, continued first quarter earnings results this week will help investors gain a better sense of how well profits at U.S. companies held up over the first three months of the year.
“A lot of really good news is already reflected in [stock]prices, and that’s why we’re struggling to move materially higher,” Michael Arone, chief investment strategist at State Street Global Advisors, told the WSJ, adding that as the weeks go on, corporate executives will provide more clarity about the outlook for coming quarters.
Investors will also get a clearer look on the U.S. economy with data on jobless claims and estimates for first-quarter gross domestic product.
Meanwhile, traders will be watching for big earnings from a third of the S&P 500 companies, including technology giants like Microsoft (NasdaqGS: MSFT), Facebook (NasdaqGS: FB) and Amazon (NasdaqGS: AMZN), along with others industry leaders like Boeing (NYSE: BA).
“Q1 earnings have largely been a pleasant surprise thus far, but have not ignited investor enthusiasm enough to move the needle in a meaningful way,” Peter Kenny, founder of Strategic Board Solutions LLC in New York, wrote in a client note, according to Reuters.
“Given the waning volume and advance/decline metrics evidenced by equity markets in recent weeks, it would be justifiable to be concerned,” he added.
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