US stocks hang near their record heights

Key Points:

• U.S. stocks are trading near record highs, with the S&P 500 slightly down 0.1% and the Dow Jones down 0.3%, as investors await profit reports from major retailers like Home Depot, Target, and Walmart to gauge consumer spending amid inflation and a slowing job market.
• S&P 500 companies have reported strong earnings growth of about 50% year-over-year for the spring, the best in five years, largely driving recent market gains, but retailers face challenges due to job cuts and persistent inflation affecting consumer incomes.
• Oil prices remain volatile due to uncertainty over a potential U.S.-Iran deal affecting Persian Gulf oil shipments, with Brent crude at $88.87 per barrel, while Treasury yields have risen, reflecting inflation concerns and expectations of possible Federal Reserve interest rate hikes.
• Recent inflation data showed some easing, raising hopes the Federal Reserve may delay further rate increases, but higher borrowing costs continue to impact the economy, including pushing mortgage rates near their highest levels in a year.
• In corporate news, L3Harris Technologies' CEO resigned over conduct issues, Alphabet shares dipped despite increased investment from Berkshire Hathaway, and Berkshire sold its holdings in Constellation Brands; international markets saw mixed performances with gains in Asia and declines in Europe.