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US stocks struggle hard to defend profits from the big Internet revenue



US. Equities have had a hard time gaining a foothold as investors look forward to a big week of quarterly earnings and corporate data after a long vacation weekend. Investors also noted a rise in crude oil prices as the US said they would stop giving up on imports of Iranian crude oil.

How are the indices?

The Dow Jones Industrial Average

DJIA, -0.16%

fell 42 points or 0.2% to 26,516, while the S & P 500 index

SPX, + 0.04%

climbed to 2,906 points. The Nasdaq Composite Index

COMP, + 0.13%

gained 7 points to 8,005.

US. The markets closed on Good Friday, with most European stock markets closed for Easter Monday.

What drives the market?

About 150 S & P 500 companies will report this week with Kleenex parent Kimberly-Clark Corp .

KMB, + 5.92%

On Monday morning, the reporting for adjusted first quarter earnings and sales started less than expected. The stock rose 6.3% and was among the biggest winners of S & P 500.

The shares of [BoeingCo

BA, -0.94%

were 0.7% off to charge the Dow after the lax security associated with making the aircraft manufacturer's 787 Dreamliner had been charged to an article in The New York Times on Saturday. The report comes after the grounding of the 737 Max Jets, which was already in the limelight after two fatal crashes.

Big names that reported during the week include Coca-Cola Co.

KO, -0.16%

Twitter Inc.

TWTR, -0.33%. 19659004] Facebook Inc.

FB, + 1.50%

Amazon.com Inc.

AMZN, + 1.33%

[19659004] Microsoft Corp. .

MSFT, + 0.21%

Starbucks Corp.

SBUX, -0.64%

and Ford Motor Co.

F [1945657]. -0.68%

Of the 15% of S & P 500 companies that reported, 78% of companies reported better than expected earnings above the five-year average, according to FactSet. However, it is potentially distressing for investor sentiment that only 53% of companies exceeded sales estimates and lagged the five-year average.

Oil prices rebounded with crude West Texas Intermediate futures

CLK9, + 2.77%

rose nearly 3% and the Brent futures

LCOM9, + 3.15%

climbed 3.3%. The profits came after reports that the US will no longer issue exemptions for the import of Iranian oil, possibly already on Monday.

The Chicago Fed national US activity index rose from minus 0.31 to minus 0.15 in February. A zero means that economies are expanding at a rate of economic growth, while negative values ​​mean below trend growth and positive above trend values.

Existing flats were sold in March at a seasonally adjusted annual rate of 5.21 million, 4.9%. lower than in February and missed the Econoday consensus of 5.3 million.

What do analysts say?

Investors are cautious as they await earnings reports from some of the largest and most consistent US companies this week, said Willie Delwiche, investment strategist at RW Baird.

"It is not really necessary to go there and act aggressively on the market, given the corporate data coming soon and the GDP data that will be released this week," he said. "People are sitting on their hands and watching a bit."

"Because the S & P 500's forward PE (price-to-earnings) ratio is close to highs of 16.8 and index 1, 2% below its historic record, investors need to deliver convincing results to keep stocks up to date, "said Hussein Sayed, Chief Market Strategist at FXTM, in a note to customers.

"The Federal Reserve has limits on what to do to tighten monetary policy, and a relaxation of policy can not happen unless we see serious signs of slowing inflation, which is not the case at the moment. Therefore, a disappointment in results this week may lead to a sharp correction in stock prices, "said Sayed.

Which Stocks Are Focused?

Shares of Tesla Inc.

TSLA, -3.39%

dropped 3.3%, with the electric car company reportedly investigating a video from Shanghai showing a parked Tesla car.

Tesla will hold an Autonomy Day on Monday , on which the electric car maker is expected to unveil the company's latest advances in self-propelled technologies, just two days ahead of first-quarter results, which are expected to show a loss due to declining vehicle sales.

Revenue by Tesla: The big question is how big is the quarterly loss.

Halliburton Co.

HAL, -0.90%

shares rose 0.3% down The company reported lower profits and sales than expected from Wall Street.

Stocks of KeyW Holding Corp. .

KEYW, + 42.62%

rebounded 43% after the engineering and technology company announced a deal to be taken by Jacobs Engineering Group Inc. .

JEC, + 1.74%

on a $ 815 million deal, including $ 272 million in debt.

Bed Bath & Beyond Inc. .

BBBY, -5.11%

shares fell 3.9% after the retailer announced that it would shake up the composition of its board due to shareholder pressure.

How are other markets traded?

The Shanghai Composite

SHCOMP, -1.70%

fell 1.7% and the CSI 300 Index

000300, -2.31%

fell 2.3%, while the major European stock markets remained closed for a prolonged Easter break.

Gold Pries

GCM9, + 0.09%

rose during the ICE Dollar Index

DXY, -0.11%

fell against his peers as oil-driven currencies rose.

– Barbara Kollmeyer contributed to this report

providing critical information for the US trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.


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