A pullback on Wall Street Monday ahead of an earnings deluge this week.
The Dow lost 123 points. The S&P 500 gave up 22. The Nasdaq fell 137.
Monday's decline is nothing to worry about, given the bright outlook for earning, says Chad Morganlander, senior portfolio manager and co-founder at Washington Crossing Advisors.
"As the US economy opens up, the global economy opens up like the emerging markets, that's going to be a positive tailwind to to S&P earnings as well as revenues. So I wouldn't get so concerned about today's trade. We should expect really good numbers this quarter and also good expectations going forward."
Looking at Monday's quarterly results...Coca-Cola topped profit and sales forecasts. The global soft drink giant saw volumes, a key indicator of demand, return to 2019 levels. But Coke was cautious about the future, which is still dependent on how the health crisis fares. Shares of Coke were little changed.
Harley-Davidson beat profit expectations and the motorcycle company posted its first quarterly sales increase in its No. 1 U.S. market in six years. Harley also boosted its profit forecast for the year but it faces a speed-bump in the European Union, where it faces a 56% import tariff even on products made inside the region. Shares of Harley-Davidson touched a 3-year high.
Outside of earnings: A warning over the weekend from the U.S. Consumer Product Safety Commission. It urged consumers with small children to stop using the Peloton Tread+ treadmill. The warning came after reports of one death and dozens of children being sucked beneath the treadmill. Shares of Peloton fell 7 percent.
Tesla was down after a deadly accident over the weekend. The National Highway Traffic Safety Administration and the National Transportation Safety Board both said they would investigate the Model S crash in Texas. Local police said the car appeared not to have someone in the driver's seat. If that was the case, this would be the latest accident involving Tesla's autopilot semi-automated driving system. Shares of Tesla fell three percent.