Traders work on the floor of the New York Stock Exchange (NYSE) on April 21, 2023.
Spencer Platt | Getty Images
The Nasdaq Composite slipped on Monday as investors awaited a slew of corporate earnings from big tech companies, as well as fresh economic data releases.
The tech-heavy index slid 0.5%. The Dow Jones Industrial Average rose 15 points, or 0.1%, while the S&P 500 lost 0.1%.
Wall Street is looking ahead toward mega-cap tech earnings results this week in what will mark the halfway point of earnings season. Alphabet, Microsoft, Amazon and Meta are among the high-interest names scheduled to announce their results for the first quarter.
“Investors are, a little bit, in a wait-and-see mode: waiting to see what happens with big tech earnings this week,” said Chris Zaccarelli, chief investment officer at the Independent Advisor Alliance.
But he said it may be difficult for tech stocks to rally following earnings after already advancing significantly this year. Communication services and information technology stocks within the S&P 500 have posted the biggest year-to-date gains of the index’s 11 total sectors, adding more than 19% and 18%, respectively.
“A lot of the good news is already in the price,” he said of tech stocks. “It’s going to take a lot more for tech earnings this week to really move the needle on the stock prices.”
Roughly 76% of S&P 500 companies that have reported earnings through Monday morning beat analyst earnings estimates, according to FactSet data. However, first-quarter earnings for S&P 500 companies are estimated to decline an overall 5.2%, per Refinitiv.
Investors are also keeping a close eye out on new economic data that will provide insight into whether inflation is cooling, or if the Federal Reserve will announce another rate hike at its next meeting in early May. GDP numbers for the first quarter and April’s consumer sentiment data are both among data slated for later in the week.