U.S. stocks wavered between small gains and losses Tuesday, weighed down by a pullback in shares of technology and communications companies.
The S&P 500 added less than 0.1%, erasing an earlier decline. The Nasdaq Composite slipped 0.2%, and the Dow Jones Industrial Average rose 37 points, or 0.1%, to 34876.
A solid earnings season has helped bolster investors’ optimism that stocks can continue to grind higher following an already strong rally this year. Money managers say continued support from central banks and economic data that still shows growth will further support equities.
“It has been a pretty strong earnings season and that justifies the medium-term positive view that we have on stocks,” said Justin Onuekwusi, head of retail multiasset funds at Legal & General Investment Management. “Earnings typically always beat the average analyst estimate, but for the second quarter in a row, they are coming in above the highest estimates, which is pretty unprecedented.”
While strong earnings boosted some shares, pressure in the communication services sector weighed on the tech-heavy Nasdaq.