US stocks closed little changed in low volume on Monday as gains in utilities and consumer stocks offset declines in healthcare, with earnings news filtering out winners and losers across the board.
BlackRock shares (BLK.N) fell 3.1% after the world's biggest asset manager's quarterly profit came in below expectations.
S&P is ending down -0.13 points or -0.01% to 2459.14. Bank of America fell 1.3 percent and dragged the S&P. Mainland markets were mixed after falling on what some have termed "Black Monday". The apparent failure of the health-care legislation is seen as delaying pro-growth policies espoused by President Donald Trump, which could boost the buck and push Treasury prices lower. Elsewhere, the Tuesday's rally in risk assets, like tech names, belied some haven buying as the US dollar slumped in the wake of reports that Republican lawmakers were nixing plans to push forward a Senate bill to repeal and replace the Affordable Care Act, otherwise known as Obamacare. A fractional gain would have been a new record high close.
Netflix announced that it added 5.2 million members, well above the Wall Street estimate of 3.23 million.
In deal news, diamond producer Dominion Diamond agreed to be bought by Washington Cos. for $14.25 a share, or about $1.2 billion. The company also beat on revenue, but fell slightly shy of Earnings Per Share.
Financial giant Goldman Sachs, health care products maker Johnson & Johnson and health insurer UnitedHealth will report their second-quarter results early Tuesday. Later in the week, investors will get the opportunity to respond to data from Microsoft and Ebay. This is helping lift futures on the Nasdaq-100 Index (NDX), though this pre-market upside is modest as USA stocks struggle for direction.
This follows a robust first quarter when USA companies posted their best earnings since 2011, according to Thomson Reuters I/B/E/S. Investors may even be willing to buy strength at current price levels since they don't seem to be too concerned the Fed will raise interest rates a third time in 2017.