* 2nd-qtr earnings kick off this week
* Dollar touches 2-month high
* Yellen to testify later in the week
* Indexes down: Dow down 0.07 pct, S&P 0.04 pct, Nasdaq 0.08
(Updates to open)
By Sweta Singh
July 10 (Reuters) – U.S. stocks swung between gains and
losses on Monday as technology stocks buoyed the Nasdaq, while
losses in healthcare weighed on the S&P 500 and the Dow.
Seven of the 11 major S&P sectors were higher, with the
healthcare index’s 0.22 percent fall leading the
decliners. The infotech index was up 0.27 percent.
President Donald Trump’s effort to roll back Obamacare faced
growing obstacles on Monday as Republicans remained divided over
how to curb the costs of their proposed healthcare bill and
prevent millions from losing coverage.
Investors were wary of making big bets ahead of the start of
the earnings season, with big U.S. banks including JPMorgan
Chase, Wells Fargo and Citigroup reporting
In a significant victory for the banking industry, the Fed
late last month approved plans from the 34 largest U.S. banks to
use extra capital for stock buybacks, dividends and other
“I think what’s happening today is the markets are in a
wait-and-see approach ahead of the next big catalyst, which is
earnings season,” said Adam Sarhan, chief executive officer at
50 Park Investments in Florida.
“The way I see what’s happening today is just a little bit
of rotation occurring where you’re selling leadership and you’re
buying undervalued, or you’re hunting for value.”
The three major indexes are trading close to record levels,
boosted by strong economic data and robust corporate performance
in the first quarter.
Markets closed on a high on Friday after a payrolls report
gave investors more confidence in the strength of the U.S.
Nonfarm payrolls increased by 222,000 jobs last month, a
report by the U.S. Labor Department showed on Friday. It was the
second biggest increase this year and topped economists’
expectations for a 179,000 gain.
The dollar climbed to a two-month high against the Japanese
yen on Monday as a robust jobs data propped up U.S. Treasury
Federal Reserve Chair Janet Yellen’s semi-annual testimony
is the key highlight of this week for investors looking for cues
on further rate hikes. She will testify on Wednesday and
At 9:57 a.m. ET (13:57 GMT) the Dow Jones Industrial Average
was down 14.25 points, or 0.07 percent, at 21,400.09, the
S&P 500 was down 1.03 points, or 0.042 percent, at
2,424.15 and the Nasdaq Composite was down 5.05 points,
or 0.08 percent, at 6,148.03.
United Health was down 0.34 percent at $187.23 after
the President Trump’s plan to replace Obamacare continued to
Abercrombie & Fitch shares were down 19 percent at
$9.85 after the teen apparel retailer terminated discussion on a
potential deal following a review.
ClubCorp shares were up 30 percent at $17.05 after
the owner of private golf and country clubs got a takeover offer
from private equity firm Apollo Global Management LLC.
Declining issues outnumbered advancers on the New York Stock
Exchange by 1,359 to 1,255. On the Nasdaq, 1,610 issues fell and
The S&P 500 index showed 27 new 52-week highs and 11 new
lows, while the Nasdaq recorded 81 new highs and 69 new lows.
(Reporting by Sweta Singh; Additional reporting by Anya
Tharakan in Bengaluru; Editing by Arun Koyyur)