Wall Street hovers near record highs before tech earnings, Fed meeting
* Apple, Alphabet, Amazon, Microsoft results due this week
* Hasbro rises on strong results; Tesla awaited
* AON up, Willis down after $30 bln merger falls through
* Indexes up: Dow 0.05%, S&P 0.17%, Nasdaq 0.07% (Updates to midday)
By Ambar Warrick and Shashank Nayar
July 26 (Reuters) - Wall Street indexes hovered near record highs on Monday in a week packed with heavyweight technology earnings, with investors staying away from big bets in the runup to a policy meeting by the Federal Reserve.
All three major indexes hit a record high before losing momentum to trade flat. Strength in the second-quarter earnings season has helped markets weather recent concerns over the Delta variant of COVID-19.
Tesla TSLA.O , which rose 3.2%, is set to report earnings after the market closes on Monday. Other heavyweights, including Alphabet Inc GOOGL.O , Apple Inc AAPL.O , Amazon.com AMZN.O , Facebook FB.O and Microsoft Corp MSFT.O , will report earnings through the week.
Of the S&P 500 .SPX constituents, 124 companies have reported earnings so far and roughly 88.7% of them have beaten estimates, according to Refinitiv data.
"Everybody is expecting earnings to be robust mainly due to easy comparables from last year, and if that trend were to change, it would definitely be a negative for markets," said Sean O'Hara, president at Pacer ETFs.
A two-day meeting of the Fed starting on Tuesday will be watched by investors for more clues on the central bank's planned tightening of monetary policy, given that inflation has been rising sharply in recent months.
While fears of earlier-than-expected tightening by the central bank have rattled markets this year, the Fed is widely expected to keep policy static at accommodative levels this week.
"The Fed is not going to be explicit in its language and the market is going to pay more keen attention to the more local voices from the Fed to get a better idea on the interest rate cycle," O'Hara said.
"If we start seeing any signs of a less supportive Fed, it'll be a cause for concern."
At 12:03 p.m. ET, the Dow Jones Industrial Average .DJI was up 19.22 points, or 0.05%, at 35,080.77, the S&P 500 .SPX was up 7.36 points, or 0.17%, at 4,419.15. The Nasdaq Composite .IXIC was up 10.73 points, or 0.07%, at 14,847.73.
U.S.-listed Chinese stocks sank after Beijing last week announced new rules on private tutoring and online education firms, the latest in a series of crackdowns on the technology sector that have roiled financial markets.
E-commerce major Alibaba Group BABA.N and search engine Baidu Inc BIDU.O , two of the largest listed Chinese stocks in the United States, slipped 6.3% and 5.4%, respectively.
Recent losses in Chinese stocks have been steeper than those recorded during the height of the Sino-U.S. trade war in 2018, mainly due to Beijing's targeting of large technology firms.
Among major earnings, toymaker Hasbro Inc HAS.O surged 11.5% after it posted a better-than-expected 54% jump in quarterly revenue.
UK-based Insurance broker AON Plc AON.N rose 8.4% after agreeing to terminate its $30 billion merger agreement with rival Willis Towers Watson Plc WLTW.O , whose shares fell 7.5%.
Weapons maker Lockheed Martin Corp LMT.N fell 3.2% after a classified aeronautics development program caused the firm to miss profit estimates. Advancing issues outnumbered decliners by a 1.36-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.21-to-1 ratio on the Nasdaq.
The S&P index recorded 43 new 52-week highs and no new lows, while the Nasdaq recorded 67 new highs and 109 new lows.
Chinese stocks under regulatory fire Link
Reporting by Ambar Warrick in Bengaluru; Editing by Aditya
Soni and Arun Koyyur
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.