On Monday, the U.S. benchmark equity indexes concluded the day with mixed results as investors anticipated significant corporate earnings reports alongside the Federal Reserve's forthcoming monetary policy decision, which is set for Wednesday. The S&P 500 and Nasdaq Composite each recorded a slight increase of 0.1%, closing at 5,463.5 and 17,370.2, respectively.
In contrast, the Dow Jones Industrial Average edged down by 0.1%, reaching 40,539.9. Within sector performance, consumer discretionary led the gains, while the energy sector experienced the sharpest decline. This week is pivotal as major mega-cap companies such as Apple Inc. (AAPL), Microsoft Corporation (MSFT), and Meta Platforms, the parent company of Facebook (META), alongside Amazon.com, Inc.
(AMZN), are scheduled to unveil their quarterly financial results. Other notable companies reporting include Intel Corporation (INTC), The Boeing Company (BA), Pfizer Inc. (PFE), Advanced Micro Devices, Inc. (AMD), and Exxon Mobil Corporation (XOM). As of now, 206 of the S&P 500 companies, which accounts for 41%, have reported their results in the current earnings season, showing a 6.5% year-over-year increase in earnings coupled with a 4.1% increase in revenue growth, as stated in a Monday note from Oppenheimer Asset Management. In corporate news, ON Semiconductor's (ON) fiscal second-quarter results, while experiencing a year-over-year decline, surpassed market expectations.
The chipmaker has provided a bullish earnings outlook for the ongoing quarter, matching analyst forecasts at the midpoint. As a result, ON Semiconductor's shares surged nearly 12%, marking it as the top gainer on both the S&P 500 and Nasdaq. Conversely, McDonald's Corporation (MCD) posted second-quarter earnings and revenue that fell short of market expectations, accompanied by a decline in same-store sales across all segments.
This situation was exacerbated by cautious consumer spending and reduced traffic in major markets. Despite these challenges, McDonald's shares saw a 3.7% increase, making it the best-performing stock in the Dow Jones index. Arm Holdings (ARM) faced the second-largest drop on the Nasdaq, plummeting 5.1% following a downgrade by HSBC from hold to reduce. Furthermore, Enstar Group Limited (ESGR) shares saw a decline of 6.1% as the company agreed to be acquired by a consortium led by Sixth Street in a substantial $5.1 billion deal. The U.S.
10-year Treasury yield saw a decrease of 2.9 basis points, settling at 4.17%, while the two-year yield remained stable at 4.39%. The Federal Open Market Committee (FOMC) is poised to announce its monetary policy decision this Wednesday. Analysts widely expect the Fed to keep interest rates unchanged for the eighth consecutive meeting, with rates anticipated to remain within a range of 5.25% to 5.50%.
However, without a Summary of Economic Projections this month, market participants will be scrutinizing the FOMC statement closely, particularly Fed Chair Jerome Powell's press conference, for insights into potential rate cuts in September, according to Stifel's Monday client note. In commodity news, West Texas Intermediate crude oil prices declined by 1.7%, dropping to $75.88 per barrel on Monday. On the economic front, manufacturing activity in Texas contracted more than expected this month, as production and shipments fell into negative territory according to the Dallas Fed's report. Gold and silver prices remained relatively stable, recorded at $2,380.70 per troy ounce and $28.03 per ounce, respectively..