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 alexander.osipovich@dowjones.com
and Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
July 17, 2017 18:35 ET (22:35 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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