* BlackRock falls after quarterly results miss estimates
* Netflix to report results after the bell
* Dow off 0.03 pct, S&P down 0.01 pct, Nasdaq up 0.05 pct
(Updates to open)
By Tanya Agrawal
July 17 (Reuters) – U.S. stocks opened little changed and
held steady at record levels on Monday as investors turned their
focus to a busy earnings week from big U.S. companies.
Microsoft, IBM and Johnson and Johnson
are scheduled to report results this week.
Netflix, which will report results after the market
close on Monday, rose 0.8 percent in early trading.
Analysts estimate second-quarter earnings for the S&P 500
companies rose 8.1 percent from a year earlier. First-quarter
earnings posted their best performance since 2011, according to
Thomson Reuters data.
Earnings will be closely watched to see if high valuations
are justified in the face of tepid inflation and a recent patch
of mixed economic data.
The S&P 500 has been trading at about 18 times earnings
estimates for the next 12 months, compared with the long-term
average of 15 times.
“The U.S. market isn’t cheap right now,” said Phil Guarco,
global investment specialist at J.P. Morgan Private Bank.
“Earnings are going to take an important role. We’re in a
situation where the corporate profits and the profits they are
going to deliver in the future will be of keen interest.”
At 9:40 a.m. ET (1340 GMT), the Dow Jones Industrial Average
was down 6.09 points, or 0.03 percent, at 21,631.65, the
S&P 500 was down 0.37 points, or 0.01 percent, at
The Nasdaq Composite was up 3.02 points, or 0.05
percent, at 6,315.48.
Seven of the 11 major S&P sectors were higher, with the
telecommunications index’s 0.28 percent rise leading
The financial sector led the laggards with a 0.43
percent fall after results and forecasts on Friday by big banks
such as JPMorgan, Citigroup and Wells Fargo
failed to excite investors.
Bank of America, Morgan Stanley, Goldman
Sachs will report results later this week.
The Dow and the S&P hit record highs on Friday after weak
economic data dulled prospects of more interest rate hikes this
Last week, investor sentiment got a boost after Federal
Reserve Chair Janet Yellen said future rate hikes could be
gradual in the face of persistently low inflation. The Fed will
meet next on July 25-26.
Shares of BlackRock fell 3 percent after the world’s
biggest asset manager’s quarterly profit came in below
General Cable jumped 7.2 percent after the cable
manufacturer announced on Sunday a review of strategic
alternatives that could include a potential sale of the company.
Declining issues outnumbered advancers on the NYSE by 1,329
to 1,213. On the Nasdaq, 1,340 issues fell and 1,032 advanced.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)