The major averages closed the first session of the week little changed and mixed today. On what was another low, low volume day, investors were content to wait until the Money Center banks report Q1 earnings on Wednesday before committing to new buys. The sectors were also mixed with gains in Consumer Discretionary (XLY), REITs (XLRE), Financials (XLF) and Consumer Staples (XLP) being offset by weakness in Energy (XLE), Communication Services (XLC) and Technology (XLK). There were pockets of strength however in tech as shares of chip maker NVIDIA (NVDA) jumped +5.62% after raising revenue estimates and unveiling a new server app, while Alibaba (BABA) surged +9.35% after agreeing to a fine assessed by China’s antitrust regulator. A -4.18% drop in Dow component Intel (INTC) after NVIDIA’s news kept pressure on the blue chips and the DJIA closed the day with a loss of 55.20 points (-0.16%) at 33745.40. The S&P 500 backed off a new record close the last hour of trading easing 0.81 point (-0.02%) to 4127.99, while the NASDAQ slipped 50.19 points (-0.36^) finishing at 13850.00.

Breadth was negative with declining issues beating advancing issues by 4 units on the NYSE and 1.8:1 on the NASDAQ. Declining volume was 59% on the NYSE and 72% of the NASDAQ. The VIX increased 0.22 (+1.32%) and finished at 16.91. Crude oil prices rose 0.39 (+0.66%) and the May contract closed at $59.71 a barrel. Gold prices lost 13.30 (-0.76%) and finished at $1731.50 an ounce. Bitcoin (BTC) ended the session at $60,200, up 0.36%.

Another quiet session as market participants wait for the banks to roll out earnings on Wednesday. In the background, several companies have raised estimates despite the bar already set high. Although prices aren’t cheap, it’s likely we’re going to see upside surprises in earnings and revenues. That should keep the major averages leaning forward as investors comb over Q1 reports.

Earnings releases to watch for on Tuesday include: Fastenal Co (FAST), Schwab Corp (SCHW) and SeaChange International (SEAC).

Tuesday’s Market Moving Economic Calendar: NIFB small Business Optimism Index and CPI.

By David L. Blake, CMT