Goodbye, all-time highs. The Dow Jones Industrial Average and S&P 500 snapped a record-breaking streak with only small losses to begin the week.
The Dow declined by 0.04% on Monday, July 17, breaking away from the flatline in the final hour of trading. The blue-chip index had ended Friday, July 14, with a record close for its third day in a row.
The S&P 500 dipped 0.01%. It also recorded an all-time high at market close on Friday. The Nasdaq added 0.03%.
Wall Street was reluctant to make any big moves ahead of a rush of earnings in the coming days. Notable earnings in the coming week include Netflix Inc. (NFLX) on Monday; International Business Machines Corp. (IBM) , Bank of America Corp. (BAC) and Goldman Sachs Group Inc. (GS) on Tuesday, July 18; and eBay Inc. (EBAY) , Snap Inc. (SNAP) and Microsoft Corp. (MSFT) on Thursday, July 20.
The second-quarter earnings season kicked off on Friday with a number of notable reports from the banking sector.
Overall, analysts anticipate another quarter of above-average strength. CFRA Research said it anticipates 6.2% year-over-year earnings growth among S&P 500 companies, better than a 1.7% earnings decline seen in the same quarter a year earlier. The energy sector is expected to lead the pack, recovering from weakness over the previous two years.
"We believe another quarter of double-digit earnings growth for the S&P 500 in the second quarter is possible, given generally solid overall economic data, the strong rebound in energy sector profits, and solid financial and technology sector earnings gains," said Burt White, chief investment officer for LPL Financial.
So far, 6% of S&P 500 companies have reported on their second-quarter performance. Of those, 75% have exceeded earnings estimates and 78.1% have topped revenue forecasts, according to Thomson Reuters data.
BlackRock Inc. (BLK) fell Monday after falling short of profit and sales estimates over its recent quarter. Adjusted earnings of $5.24 a share missed consensus of $5.40. Revenue rose 6% to $2.97 billion. Analysts anticipated revenue of $2.99 billion.
Apple Inc. (AAPL) was active after a bullish note from Morgan Stanley. Analyst Katy Huberty raised Apple's price target to $182 from $177 on long-term optimism after the company reports on Aug. 1. Huberty believes the company will provide weaker fourth-quarter guidance than anticipated on delays in the launch of its new iPhone model. That should set up for a "much better-than-normal December and March quarter."