[BRIEFING.COM] The major indices closed mixed as some relief from plunging oil prices helped stocks snap their worst three-day losing streak in over a year and divert some attention from the ongoing unrest in the Middle East. In fact, with the Dow down 395 points over the previous three sessions and the Nasdaq off 4.4% last week alone, it wasn't all that surprising to see somewhat of a bounce.
Be that as it may, with so many additional news items on the market's radar screen this week -- from key inflation data (e.g. PPI and CPI) to Fed Chairman Bernanke updating Congress about monetary policy to a plethora of more earnings reports to provide further evidence on the pace of Q2 profit growth -- investors stuck relatively close to the sidelines in anticipation of what should be a very volatile week.
The most notable name posting quarterly results Monday was Citigroup (C 46.40 -1.18). However, as the third most influential of all 500 SnP constituents, the bellwether growing Q2 profits a paltry 4% questioned the sustainability of double-digit earnings growth for a 12th straight quarter and prevented the Financials sector from offering anything in the way of leadership heading into a plethora of reports from banks and brokers tomorrow.
Among the seven economic sectors trading higher, Consumer Discretionary provided some notable leadership after McDonald's (MCD 34.72 +1.68) reported better-than-expected preliminary Q2 earnings on the heels of strong June systemwide sales. Harley-Davidson (HDI 52.31 +0.94) reiterating its full-year profit outlook, and Mattel (MAT 17.60 +1.72) returning to profitability in Q2, were additional sources of sector support. Technology also lent some support amid a 3.2% surge in Apple Computer (AAPL 52.37 +1.70), which was mentioned positively in Barron's over the weekend.
The absence of leadership from Energy and Materials, two sectors again expected to contribute significantly to aggregate earnings growth on the SnP 500, also prevented investors from more aggressively recouping some of last week's broad-based losses. The greenback strengthening to a three-month high against the yen, and gaining against the euro amid more safe-haven buying attributed to uncertainty in the Middle East, diminished the desire to own stocks tied to dollar-denominated commodities. Crude oil futures closed down 2.3% at $75.30 per barrel as gains in each of the past four days that led to new all-time highs prompted traders to lock in some of their profits. NYSE Adv/Dec 1348/1917...Nasdaq Adv/Dec 1112/1899
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