Investing.com – Wall Street closed at record highs on Monday, as market participants continued to expect upbeat corporate earnings would underpin a move higher in market averages offsetting the recent slump in tech stocks.
U.S. stocks made a mixed start to the week, as sentiment on corporates earnings remained bullish, after data from Factset on Friday showed 73% of the S&P 500 companies that had reported earnings as of last week, beat estimates on both the top and bottom lines.
Some analysts suggested, however, that the recent bull run in the main U.S. indexes could come under pressure, as corporate earnings in the second half of the year may struggle match expectations.
"We're probably seeing peak earnings," said Ed Keon, managing director and portfolio manager at QMA, a multi-asset manager in Newark, New Jersey. "I think we'll be a little slower in the second half."
Meanwhile on the economic data front, investors had to contend with mixed economic reports pointing to a possible weakness in manufacturing activeness while housing data topped forecasts.
The Chicago business barometer, a closely-watched indicator by the Institute for Supply Management (ISM) slipped to 58.9 in July from a three-year high of 65.7 in June, MNI indicators showed on Monday.
Any reading over 50 indicates improving conditions.
In a separate report, the National Association of Realtors said on Monday, pending home sales, or signed contracts to buy previously owned homes, rose 1.5% in June from the previous month.
The pair of mixed reports comes ahead of an eagerly-awaited update on the strength of the U.S. labor market, with nonfarm payroll slated for Friday.
The Dow Jones Industrial Average closed higher at 21,891.12. The S&P 500 closed 0.07% higher while the Nasdaq Composite closed at 6348.12, down 0.42%.
‘Bulls and Bears’ on Wall Street
The top Dow gainers for the session: Home Depot Inc (NYSE:HD) up 1%, Chevron Corporation (NYSE:CVX) up 1% and Verizon Communications Inc (NYSE:VZ) up 1%
E I du Pont de Nemours & Co (NYSE:DD) down 2.1%, Apple Inc (NASDAQ:AAPL) down 0.5% and Microsoft Corporation (NASDAQ:MSFT), down 0.5%, were among the worst Dow performers of the session.