US Stocks Edge Closer to Record Highs Amid Retail Profit Reports
US stocks are trading near their record highs as the market awaits profit reports from major retailers. The S&P 500 slipped 0.1% on Monday, while the Dow Jones Industrial Average fell 174 points or 0.3%. The Nasdaq composite was virtually unchanged.
The strong performance of US companies has driven Wall Street to new heights, with profits in the S&P 500 index expected to grow by around 50% for earnings per share in the spring from a year earlier. This would be the best since five years ago, when the economy was recovering from the COVID pandemic.
Big retailers such as Home Depot, Target, and Walmart are set to report their profits this week, but they face pressure as customers' incomes may be turning iffier after US employers surprisingly cut more jobs last month than they added. At the same time, inflation remains high, with bills rising quickly for consumers.
The price of Brent crude oil rose 0.7% to $89.15 on Monday, following recent swings between $72 and $102 due to hopes and fears over a deal allowing oil tankers to freely exit the Persian Gulf again.