Wall Street Treads Water Ahead of Crucial Retail Earnings Reports

US stocks are hovering near record highs as companies continue to report strong profits. The S&P 500 slipped 0.1% but remains near its all-time high set Thursday, while the Dow Jones Industrial Average was down 174 points, or 0.3%, and the Nasdaq composite was virtually unchanged.

The profit reports from big US retailers such as Home Depot, Target, and Walmart this week could provide insight into how shoppers are coping with high inflation and a slowing job market. The companies' customers may be facing tougher times after US employers unexpectedly cut more jobs last month than they added.

The 10-year Treasury yield has risen to 4.70% from 3.97%, largely due to higher oil prices, which have increased the pressure on inflation and raised the likelihood of interest rate hikes by the Federal Reserve. Higher rates could slow down the economy and make borrowing more expensive for everyone.