Stocks are little changed near noon as investors prepare for a step up in earnings reporting volume in what will be the busiest weak of the current earnings season in terms of reports from S&P 500 members. Tech and energy will headline the group, with earnings upcoming from Microsoft (MSFT), Facebook (FB), Amazon (AMZN), Chevron (CVX) and Exxon Mobil (XOM).
ECONOMIC EVENTS: In the U.S., existing home sales fell 4.9% to a 5.21M rate in March, which was a little below the consensus forecast. The Chicago National Activity index improved 0.16 points to -0.15 in March. In energy news, the U.S. confirmed that it plans to halt all sanction waivers on Iranian crude exports, which has given a boost to crude oil prices.
In China, The South China Morning Post reported that China's senior communist leaders have communicated plans to focus on "structural reforms," instead of economic stimulus, after growth in the first quarter was better than expected.
TOP NEWS: Boeing (BA) shares are down 0.5% near noon after The New York Times reported that workers at Boeing's 787 Dreamliner plant in South Carolina have complained of defective manufacturing, debris left on planes and pressure to not report violations. In response, Brad Zaback, vice president and general manager of Boeing's 787 Program, sent an email Saturday to all South Carolina employees that said the NY Times article "features distorted information, rehashing old stories and rumors that have long ago been put to rest."
Tesla (TSLA) shares have been pressured by a media report regarding an apparent explosion of one of its parked vehicles in Shanghai and a downgrade of the stock to a sell-equivalent rating that cites a recent "severe decline" in demand for the Model S and Model X. The electric carmaker's stock was down about 4% at midday ahead of the company's Autonomy Investor Day event, which will be livestreamed later this afternoon.
In terms of notable earnings reporters this morning, Kimberly-Clark (KMB) and Halliburton (HAL) have advanced following their release of quarterly results, while Grainger (GWW) has declined after its own report.
MAJOR MOVERS: Among the noteworthy gainers was KeyW (KEYW), which surged 43% after Jacobs Engineering (JEC) announced an agreement to acquire the company for $11.25 per share in cash in a transaction with an enterprise value, net of tax assets, of approximately $815M, including net debt. Jacobs shares were up 2% after the news. Also higher was Medidata (MDSO), which gained 11% after a media report said Dassault Systemes (DASTY) is seeking U.S. acquisitions and considering targets, including the software firm focused on clinical trials.
Among the notable losers was GrafTech (EAF), which slid 11% after Citi analyst Alexander Hacking double downgraded the stock to Sell from Buy and cut his price target for the shares to $12 from $17. Also lower was Intuitive Surgical (ISRG), which fell 7.5% after Canaccord analyst Jason Mills cut his price target on the stock to $575 from $610 following the company's Q1 EPS miss, reported before the long holiday weekend.
INDEXES: Near midday, the Dow was down 27.26, or 0.1%, to 26,532.28, the Nasdaq was up 2.20, or 0.03%, to 8,000.26, and the S&P 500 was up 0.51, or 0.02%, to 2,905.54.
Boeing
-1.87 (-0.49%)
Tesla
-10.25 (-3.75%)
Kimberly-Clark
+7.11 (+5.76%)
Halliburton
-0.08 (-0.26%)
Grainger
-14.305 (-4.64%)
KEYW
+3.35 (+42.68%)
Symbol now J
+1.39 (+1.81%)
Medidata
+8.49 (+10.77%)
Dassault Systemes
+ (+0.00%)
GrafTech
-1.55 (-11.13%)
Intuitive Surgical
-37.1 (-7.03%)