U.S. stocks struggled to maintain modest gains on Monday, with the S&P 500 and Nasdaq Composite retreating from records set on Friday.
The S&P 500 SPX, -0.15% was down 2 points at 2,115.39. The Nasdaq Composite COMP, -0.38% was down 16 points, or 0.1%, to 5,086. The Dow Jones Industrial Average DJIA, -0.06% was also moving south and traded flat at 18.087.
Kate Warne, investment strategist at Edward Jones, said investors are relieved that earnings aren't as bad as feared. But noted that the market is cautious ahead of the Fed meeting this week.
“The stock market performance this earnings season is all about numbers beating lowered expectations. There is also less worry about Greece, while a combination of better economic news and ECB’s quantitative easing are underpinning prices,” Warne said.
Investors remain optimistic about results from the largest company in the world, in terms of market capitalization, Apple Inc. AAPL, +1.80% , which is expected to report after the opening bell. Shares in the tech juggernaut rallied 2%.
Need to know: Apple’s report poised to rip through this vulnerable market
“Judging by the moves in the tech giant last week, the market believes the eight consecutive quarterly earnings beats will continue. Expect a sizable increase to its previously announced buyback,” said Chris Weston, chief market strategist at IG, in a note.
Analysts expect Apple to report fiscal second-quarter earnings of $2.15 a share and revenue of $55.75 billion. Analysts have grown increasingly bullish on Apple, with momentum building surrounding its Apple Watch and better-than-expected sales of its iPhone 6 models. Read: What to watch for in Apple’s earnings
Also read: Apple, energy, health care earnings to dominate week
A Fed meeting and data: The economic calendar heats up midweek, with a preliminary reading on first-quarter gross domestic product due on Wednesday. Also on Wednesday, Federal Reserve policy makers will deliver an updated policy statement after the conclusion of the central bank’s two-day meeting.
