By Bansari Mayur Kamdar and Noel Randewich
(Reuters) - Wall Street was mixed on Monday, as investors digested recent quarterly results from megacaps Amazon and Facebook (NASDAQ:FB) owner Meta Platforms, while Peloton jumped following reports of interest from potential buyers, including Amazon.
Nine of the 11 major S&P 500 sector indexes were up at mid-day, led by energy, with a 1.4% gain.
Amazon.com Inc (NASDAQ:AMZN) added almost 1%, extending gains after expanding its market capitalization by around $190 billion on Friday on the back of blowout earnings.
Meta Platforms fell 4.8%, extending losses after its bleak forecast last week caused a record plunge in the social media company's stock market value.
Meta weighed on the S&P 500 more than any other stock, while Nvidia rose 1.7%, lifting the index more than any other stock.
Peloton Interactive Inc surged 19% following reports that Amazon and Nike (NYSE:NKE) are exploring potential buyout offers for the stationary bike maker.
Shares of other tech titans Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Google-owner Alphabet (NASDAQ:GOOGL) Inc were mixed.
The S&P 500 remains down more than 6% so far in 2022, with investors worried about the Fed could raise interest rates faster than expected.
"Buying the dip was a foregone conclusion until 2022. There is no more guaranteed buying on the dip," said Jake Dolllarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "We're seeing corrections in indexes and individual securities on a daily and weekly basis."
The Dow Jones Industrial Average was up 0.27% at 35,182.76 points, while the S&P 500 gained 0.05% to 4,502.6.
The Nasdaq Composite dropped 0.07% to 14,087.77.
Tyson Foods Inc (NYSE:TSN) surged 10% after the meatpacker's first-quarter profit nearly doubled and surged past estimates on the back of higher prices.
Of 278 companies in the S&P 500 that have posted earnings as of Friday, 78.4% reported above analysts' expectations, according to Refinitiv data.
An unexpectedly strong jobs report last week added to investors' concerns about potentially aggressive monetary policy tightening by the U.S. Federal Reserve. Key inflation data for January is due on Thursday.
Markets are now pricing in a one-in-three chance the Fed might hike by a full 50 basis points in March and the prospect of rates reaching 1.5% by year end. [FEDWATCH]
Spirit Airlines Inc jumped about 17% after it and Frontier Group Holdings unveiled plans to create the fifth-largest U.S. airline in a $2.9 billion tie-up. That lifted the S&P 1500 Airlines Index by 3.3%.
U.S.-listed shares of China's Alibaba (NYSE:BABA) Group Holding fell almost 6% after it registered an additional 1 billion American depositary shares.
Advancing issues outnumbered declining ones on the NYSE by a 1.36-to-1 ratio; on Nasdaq, a 1.48-to-1 ratio favored advancers.
The S&P 500 posted 16 new 52-week highs and five new lows; the Nasdaq Composite recorded 29 new highs and 83 new lows.