KO - S&P 500 Dow Nasdaq drift sideways with Big Tech earnings on tap this week

2023-04-24 16:04:18 ET

Continuing the uncertain trading that marked most of last week, the major U.S. equity averages finished with a mixed performance on Monday. Investors continued to hold steady ahead of key technology earnings due out later this week.

The Nasdaq Composite ( COMP.IND ) closed -0.3% , the S&P 500 ( SP500 ) ended +0.1% and the Dow ( DJI ) finished +0.2% .

"After starting the day in the green, all major US indices slid into the red by noon, only to recover and close flattish," market expert Ahan Vashi told Seeking Alpha. "With S&P500 still stuck in the 4,100-4,150 resistance zone, I remain cautious on equities."

"Big tech giants have led the year-to-date rally in equities; however, it's been driven solely by trading multiple expansion, with earnings estimates for 2023 headed in the wrong direction," Vashi explained. "If even some of these names fail to appease investors' raised expectations, we could see volatile market swings to the downside in the upcoming week or two."

Earnings news remained the key topic of conversation on Wall Street, although Monday's docket of results was relatively thin. Coca-Cola ( KO ) represented the highest-profile company to announce its financial figures, with shares of the beverage giant generally treading water following its Street-beating report .

Later this week, a list of critical tech companies are slated to announce their results. This includes Alphabet ( GOOG ) ( GOOGL ), Amazon ( AMZN ), Microsoft ( MSFT ) and Meta Platforms ( META ).

Turning to the fixed income market, mild buying sent Treasury yields lower. The 10-year yield ( US10Y ) fell 6 basis points to 3.51%, while the 2-year yield ( US2Y ) retreated 5 basis points to 4.14%.

Among active stocks, Bed Bath & Beyond ( BBBY ) was another standout name. Shares of the home products retailer plunged on news that it has filed for bankruptcy .

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