Stocks Drop from Records as Earnings Season Gets Underway – US Market Wrap

Stocks took a breather after posting their longest weekly rally this year, as traders prepared for key earnings reports from Tesla, Boeing, and United Parcel Service.

Following a relentless advance to all-time highs, stocks fell from near-overbought levels. Another indication of how greed has trumped fear is that the S&P 500 has not suffered back-to-back losses in nearly 30 sessions. While a month without consecutive down days may not sound impressive, the current streak is among the best since 1928.

Wall Street faces a significant earnings hurdle this week, with roughly 20% of S&P 500 companies scheduled to report. According to a recent survey, respondents believe Corporate America’s results are more important for the equity market’s performance than the outcome of the November election or even the Federal Reserve’s policy path.

The S&P 500 index fell 0.2%. The Nasdaq 100 fell 0.2 percent. The Dow Jones Industrial Average declined 0.8%. The Russell 2000 declined 1.6%. Homebuilders plunged. United Parcel Service fell 3.4% following a sell recommendation from Barclays. Megacaps were mixed, with Tesla falling and Nvidia reaching a new high. Boeing gained 3.1% following a tentative agreement with its workers’ union.

Oil prices rose as China moved to bolster its economy once more, and traders monitored the threat to supplies posed by Middle Eastern tensions.