Nasdaq Rises for Seventh Consecutive Session
By Alexander Osipovich and Riva Gold
-- Nasdaq Composite ticks up, regaining most of ground lost since June
-- S&P 500, Dow retreat after closing at record highs Friday
-- Chinese stocks post biggest daily drop of the year
The Nasdaq Composite rose for a seventh consecutive session, on a quiet trading day ahead of a busy week of corporate earnings.
As the index extended its rebound after last month's turbulence in technology stocks, the Dow Jones Industrial Average and S&P 500 retreated from records.
The Dow industrials slipped 8.02 points, or less than 0.1%, to 21629.72. The S&P 500 fell 0.13 point, or less than 0.1%, to 2459.14. Both indexes closed at records Friday.
The Nasdaq added 1.97 points, or less than 0.1%, to 6314.43, just shy of its record close of June 8, before a spate of declines began. Tech has bounced back in recent weeks, with the S&P 500 technology sector rising 4.4% so far this month after declining 2.7% in June.
Around 5.1 billion shares of New York Stock Exchange- and Nasdaq-listed securities changed hands, making Monday the second-lowest-volume day of the year.
Consumer-discretionary shares made some of the biggest moves as investors snapped up beaten-down shares in brick-and-mortar retailers. Macy's rose 69 cents, or 3.1%, to $23.05, and Kohl's added 1.06, or 2.7%, to 39.87. Both stocks have slid in recent months amid tough e-commerce competition, but have rebounded over the past week.
"Going into earnings season, there was a lot of pessimism priced into retail stocks," said Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management.
Blue Apron Holdings fell 77 cents, or more than 10%, to 6.59, its lowest close since going public last month, following news that a unit of Amazon.com filed a trademark to begin a meal-kit service.
Shares of BlackRock, the world's largest money manager, fell 13.71, or 3.1%, to 424.63 after its second-quarter results fell short of analysts' expectations.
Netflix shares jumped more than 10% in aftermarket trading when it reported that it added more users than projected in the second quarter.
Other tech firms such as Microsoft and eBay are set to report later in the week, along with banks such as Goldman Sachs Group, Bank of America and Morgan Stanley.
Of the 6% of S&P 500 companies that had reported second-quarter earnings as of Friday, 80% had beaten analysts' earnings estimates, according to FactSet.
The dollar held steady Monday after it slid last week following weaker-than-expected U.S. economic data. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was up less than 0.1% from Friday, when it closed at a nine-month low. The yield on the 10-year Treasury note fell to 2.309% from 2.319% Friday. Yields rise as prices fall.
The Stoxx Europe 600 rose less than 0.1% Monday, with investors awaiting a meeting of the European Central Bank on Thursday to see whether an improving economy prompts the bank to shift its tone.
Chinese equity markets were volatile. Shanghai's benchmark index fell 1.4% in its biggest daily drop this year, while the Shenzhen Composite tumbled 3.6%.
The declines came even after the world's second-biggest economy beat expectations with 6.9% second-quarter growth.
China's top officials signaled over the weekend that the country's campaign against runaway debt and speculation remains a priority, dragging down small-cap shares. Policy makers at the National Financial Work Conference, which is held every five years and wrapped up on Saturday, mentioned "risk" 31 times and "regulation" 28 times, noted Jack Siu, an investment strategist for Asia-Pacific at Credit Suisse.
Adding to Monday's early gloom was a series of profit warnings from small-cap Chinese companies, as several listed stocks u-turned on their financial-health projections.
Ese Erheriene contributed to this article.
Write to Alexander Osipovich at firstname.lastname@example.org and Riva Gold at email@example.com