S&P 500, Nasdaq edge higher as earnings season looms

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S&P gains capped as investors await earnings season

NEW YORK - The S&P 500 and the Nasdaq edged into positive territory on Monday, with gains held in check by falling industrials as investors braced for what analysts now expect to be the first quarter of contracting earnings since 2016.

“We’ve been in an expansion for a long time, this is late-cycle mentality,” said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis. “Typically, we see equities perform well toward the end of the cycle.” Boeing Co was the heaviest drag on the blue-chip Dow, falling 4.4% after the company said it would cut production of its 737 MAX aircraft in response to a worldwide grounding of the jets after the fatal Ethiopian Airlines crash on March 10.

Of the 11 major sectors in the S&P 500, six closed in the black, led by energy which got a boost from rising crude prices.General Electric dropped 5.2% after JPMorgan downgraded the industrial conglomerate’s stock to “underweight” from “neutral.”

 

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