Investing.com – U.S. stocks traded mostly amid a struggle for direction on Monday as investors mulled the current quarterly earnings from corporate America and awaited further catalysts, including the release of key inflation data later this week.
By 1:40 pm ET (18:40 GMT), the index was down 71 points, or 0.2%, down 0.3% and down 0.2%.
Domino’s Pizza and Freshpet generate impressive revenues; Berkshire Hathaway reports record profits
Shares of Domino’s Pizza (NYSE:) soared more than 5% after reporting quarterly results that beat Wall Street, even as inflation weighed on profitability. The pizzeria chain increased its dividends and gave the go-ahead for further share buybacks.
Freshpet Inc. (NASDAQ:) shares soared more than 16% after the pet food maker’s fourth-quarter revenue and earnings beat analysts’ estimates, helped by rising sales and increased media spending.
Berkshire Hathaway (NYSE:) shares fell 1.7% even as Warren Buffett’s conglomerate reported its second record annual profit in a row, pushing its market value closer to $1 trillion.
Retail earnings on standby for more spending signals
As fourth-quarter earnings season winds down, a number of major retailers will report earnings this week.
Lowe’s (NYSE:), Macy’s (NYSE:), TJX Companies (NYSE:) and Best buy (NYSE:) will release its quarterly data throughout the week, focusing on any signs of a slowdown in spending.
Rising retail earnings will provide a snapshot of consumer strength at a time when many are concerned about the impact of persistent inflation and higher interest rates.
Inflation and GDP data expected
But a series of signals from the Federal Reserve last week that showed the central bank was in no hurry to start cutting interest rates in the near term limited gains.
Expectations of new key inflation indicators this week, particularly the inflation index, which is the Fed’s preferred inflation indicator, are keeping traders on edge as the new week begins.
Investors were seen to be largely underestimating the prospect of Fed rate cuts in May and June amid growing signs that inflation remains resilient.
Beyond the PCE data, the focus is also on the second reading of fourth-quarter data, which will be released on Wednesday. While economic growth in the United States has remained robust compared with other developed countries, it has also slowed in recent quarters.
Alcoa accounts for Alumina’s $2.2 billion offering; Ford fails with F-150
Alcoa (NYSE:) shares fell more than 5% after the alumina producer made a $2.2 billion offer to Australian joint venture partner Alumina (ASX:).
Ford (NYSE:) shares fell 1% even as the auto giant confirmed it has stopped deliveries of all of its 2024 F-150 Lightning trucks, citing quality control over an unspecified issue.
Cryptocurrency Stocks Hiccup in Bitcoin Rally
Cryptocurrency related stocks including Coinbase Global Inc (NASDAQ:), Marathon Digital Holdings Inc (NASDAQ:) and Riot Platforms (NASDAQ:) were in rally mode, helped by Bitcoin rising more than 3%.
The latest rally comes amid continued demand for the Bitcoin spot ETF, which was approved last month, as well as an upcoming event starting in the summer.
(Peter Nurse and Ambar Warrick contributed to this article.)