The Standard & Poor’s 500 Index was little changed, after the gauge approached a record Monday, as a rebound in commodity producers offset declines in IBM Corp. and United Technologies Corp.
International Business Machines Corp. dropped 4.8 percent after sales fell for a 13th quarter. United Technologies Corp. lost 5.8 percent after cutting its 2015 profit forecast. Newmont Mining Corp. added 2 percent after falling 12 percent Monday, and Consol Energy Inc. jumped 6.5 percent.
The S&P 500 slipped less than 0.1 percent to 2,127.59 at 9:48 a.m. in New York, after closing Monday within three points of an all-time high set in May. The Dow Jones Industrial Average lost 114.78 points, or 0.6 percent, to 17,985.63, dragged down by IBM and United Technologies which account for roughly 85 percent of the drop. The Nasdaq Composite Index rose 0.1 percent.
“Right now it’s about earnings, where they’re coming in and what they’re seeing for next quarter, and when the Fed is going to eventually raise rates,” said Thomas Garcia, the head of equity trading at Santa Fe, New Mexico-based Thornburg Investment Management Inc. “If you look at the market valuation, it’s not off the chart, but it is priced for good earnings.”
The S&P 500 had rallied 4 percent since a low on July 8, reclaiming almost all of its losses that stemmed from worries over Greece’s debt crisis and China’s market rout. It’s still trailing most developed-market benchmarks this year. The Nasdaq Composite Index closed Monday at its third consecutive all-time high, helped by a four-day rally in Apple Inc., its largest constituent.
The earnings season is picking up pace, with about a quarter of S&P 500 companies releasing results this week. Analysts project a second-quarter profit drop of 5.3 percent for S&P 500 members, less steep than July 10 estimates for a 6.4 percent decline. Apple, Yahoo! Inc. and Microsoft Corp. are also among 22 S&P 500 companies posting results today.
Investors will also watch economic reports for clues on when the Federal Reserve will raise rates, with housing and jobless-claims data due later this week.
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