NEW YORK (AP) — The Standard & Poor's 500 index held close to its record high Monday as investors assessed third-quarter earnings news.
Earnings will hold investors' attention this week as major U.S. companies including McDonald's, Boeing and Procter & Gamble report their results. Rising profits have been one of the key supports for this year's rally in stocks.
Toymaker Hasbro and the V.F. Corporation, which owns clothing brands including Wrangler and The North Face, were among the biggest gainers in the S&P 500 after reporting earnings that beat analysts' expectations. McDonalds dipped after reporting disappointing revenue.
The S&P 500 was down one point at 1,743 as of 3:13 p.m. Eastern time. That's one point below the all-time high it reached on Friday, two days after Washington reached a deal to end a 16-day government shutdown and avert a default on the nation's debt.
The index is up 22 percent so far this year, putting it on track for its best year since 2009.
The Dow Jones industrial average edged down 130 points, or 0.1 percent, to 15,386. The Nasdaq composite rose three points to 3,917.
Stocks will likely continue adding to their gains, at least until the end of the year, as investors get more confident that the market's rally is sustainable, said Joe Bell, a senior equities analyst at Schaeffer's Investment Research.
"We've had a pretty decent run here," Bell said. "It wouldn't surprise me if we saw the momentum slow a bit through the end of October and then have a nice rally through November and December."
McDonald's fell $1.07, or 1.1 percent, to $94.16 after the world's biggest hamburger chain's revenue fell short of Wall Street analyst's expectations.
Hasbro surged after reporting that its net income rose 17 percent as sales increased. Its adjusted results and revenue topped analysts' estimates. The stock climbed $3, or 6 percent, to $50.26.
Companies in the S&P 500 are expected to report earnings growth of 3.2 percent for the July-to-September period, according to the latest data from S&P Capital IQ. About 60 percent of companies that have reported earnings have beaten analysts' expectations.
"Earnings so far have been excellent," said Jerry Braakman, chief investment officer of First American Trust. "Earnings are coming in and beating (expectations) by a penny here and there, and we're very comfortable with that."
Company earnings will likely continue to grow as the outlook for the global economy brightens, as Europe continues to recover from its recession and growth in China picks up, Braakman said.
The continued stimulus for the economy from the Federal Reserve should also help support the economy and corporate earnings. The U.S. central bank is currently buying $85 billion of bonds every month to support the economy.
The government's delayed monthly jobs report for September will be released Tuesday, giving investors more information about the strength of the U.S. economy. The report, which is typically released on the first Friday of every month, was delayed because of the government shutdown.
Homebuilders slumped after Americans bought fewer previously occupied homes in September than the previous month, held back by higher mortgage rates and rising prices. The National Association of Realtors said Monday that sales of re-sold homes fell 1.9 percent to a seasonally adjusted annual rate of 5.29 million.
KB Home fell 77 cents, or 4.3 percent, to $16.43. D.R. Horton dropped 66 cents, or 3.5 percent, to $18.36.
In government bond trading, the yield on the 10-year note edged up to 2.60 percent from 2.58 percent Friday.
In commodities trading, the price of oil dipped below $100 for the first time since early July after a government report showed that U.S. supplies continue to rise. Oil fell $1.59, or 1.6 percent, to $99.22 a barrel. Gold rose $1.20, or 0.1 percent, to $1,315.80 an ounce.
Among stocks making big moves:
— V.F. Corporation rose $6.97, or 3.4 percent, to $211.33 after its earnings beat analysts' expectations.
— General Electric rose 67 cents, or 2.6 percent, to $26.22 after Citigroup added the company to its U.S. Focus List, citing the company's buyback program and cost-cutting plans among some of the reasons to own the stock.
— Gannett, the media company that owns USA Today, fell 70 cents, or 2.6 percent, to $26.79 after the company reported lower earnings and revenue for the third quarter.
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