10 hours Ago
NEW YORK — U.S. stocks edged back from their all-time highs Oct.
21 as some of the steam came out of Wall Street's long, record-breaking rally. The S&P 500 slipped 0.2 percent on Monday, coming off a sixth straight winning week, its longest such streak of the year.
The Dow Jones Industrial Average dropped 0.8 percent from its own record that was likewise set on Friday, while the Nasdaq composite rose 0.3 percent.
Trading was mixed in markets around the world. Crude oil prices rose to regain some of last week's sharp losses, while U.S.
Treasury yields climbed and stock indexes mostly fell in Europe after finishing mixed in Asia. The rise in yields helped knock down stocks that tend to get hurt by higher interest rates, such as big dividend payers and businesses in the housing industry. Real-estate stocks fell to the sharpest loss among the 11 sectors that make up the S&P 500 index, while homebuilders Lennar and D.
R. Horton both fell at least 4.3 percent.
Home Depot's 2.1 percent drop was one of the heaviest weights on the S&P 500. The declines mean at least a pause in Wall Street's rally to records, which was built in large part on optimism that the U.
S. economy can make a perfect escape from the worst inflation in generations, one that ends without a painful recession that many investors had worried could be inevitable. With the Federal Reserve now cutting interest rates to keep the economy humming, the expectation among optimists is that stocks can rise even further.
But critics are warning that stock prices look too expensive given how much faster they've climbed than corporate profits. That puts pressure on companies to deliver growth in profits to justify their stock prices, and more than 100 companies in the S&P 500 are scheduled to give details this week about their performances during the summer. That includes such heavyweights as AT&T, Boeing, Coca-Cola, IBM, General Motors and Tesla.
Tesla slipped 0.8 percent ahead of its report. Its stock has been shaky recently, including a tumble after an update on its highly anticipated robotaxi included fewer details than investors were hoping for.
Boeing Co. is reporting its latest results on Wednesday. It rose 3.
1 percent after reaching an agreement over the weekend with the union representing its striking machinists on a contract proposal. The union's members could vote Wednesday on the deal, which could end a costly walkout that has crippled production of airplanes for more than a month. Today's Top Headlines Story continues below NOAA makes its winter prediction.
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They point to how stocks of financial companies have helped to lead the market this month, and consumer companies that could be hurt by tariffs are lagging. Bond yields are also rising, along with some precious metals prices and cryptocurrencies. In the bond market, the yield on the 10-year Treasury rose to 4.
19 percent from 4.08 percent late Friday. This upcoming week doesn't include many top-tier economic reports to move Treasury yields.
A preliminary update will arrive on Thursday about U.S. business activity.
The Bank of Canada will also announce its latest decision on interest rates Wednesday, where it could cut by half a percentage point. In stock markets abroad, indexes were mixed in China after its central bank cut a couple of lending rates. Lower rates can help reduce pressure on borrowers, particularly the property developers that have suffered following a crackdown on excessive borrowing several years ago.
But any impact on market sentiment appeared to be short-lived. Stocks rose 0.2 percent in Shanghai but fell 1.
6 percent in Hong Kong, reflecting the seesaw ride for Chinese shares in recent weeks. A slowdown for the world's second-largest economy has raised expectations for big stimulus from the government and central bank, though doubts are still prevalent about how much effect they will have..
