NEW YORK (AP) Wall Street remains stable, after recording its last record week. The S&P 500 was little changed in early trading Monday after closing Friday above the 5,000 level for the first time. The Dow Jones was also little changed and the Nasdaq composite slipped 0.1%. The next big event for the market could be Tuesday's update on US inflation, which economists expect to return below 3%. Diamondback Energy soared after announcing it would buy Endeavor Energy Resources in a deal valued at about $26 billion, including debt. Coca-Cola and Kraft Heinz are among the companies reporting results this week.
THIS IS A LATEST UPDATE. AP's earlier story follows below.
After a record week, Wall Street drifted toward modest losses early Monday with more corporate earnings ahead and a new inflation update from the U.S. government.
S&P 500 futures were flat before the bell, while Dow Jones Industrial Average futures fell less than 0.1%.
This week brings an important update from the Department of Labor on consumer inflation.
US price data may not have a major impact on monetary policy. However, the good news is that US inflation has likely declined at the start of the year, bolstering expectations that the Federal Reserve may consider cutting interest rates in the coming months, Stephen Innes of SPI Asset Management said in a comment.
Wall Street has been losing momentum since the end of October, fueled by hopes that slowing inflation would lead to higher prices. Federal Reserve reduce pressure by reducing interest rates.
Profits have been generally better than expected for the S&P 500's big companies during this reporting season, which is about two-thirds complete. That has reignited optimism on Wall Street, but contrarians say it may have gone too far and taken stocks to overpriced highs.
Traders are turning to riskier investments at a fast enough pace that a contrarian measure taken by Bank of America leans more toward selling than buying, although not at compelling levels . The metric measures the extent of fear and greed in the market and suggests buying in October, when fear was at a compelling level.
On the corporate side, Diamondback Energy started the week by announcing that he will buy a rival Endeavor Energy Resources in a cash and stock transaction valued at approximately $26 billion to create a drilling giant in the southwest United States. Diamondback shares were unchanged before the market opened Monday.
Later this week, Shopify, DoorDash and WK Kellogg will release their most recent financial results.
Elsewhere, in Europe, at midday, the German DAX and the CAC 40 in Paris each gained 0.4%, while the British FTSE 100 fell 0.2%.
In Asian trading, Australia's S&P/ASX 200 slipped 0.4% to 7,614.90 and India's Sensex lost 0.6% to 71,159.98. Thailand's SET gained less than 0.1% and in Jakarta the benchmark index gained 0.9% before a election which will take place on Wednesday.
With mainland Chinese markets closed for the Lunar New Year week, there has been a dearth of market news in the region. Tokyo markets were also closed on Monday for a day off.
In other trading Monday, benchmark U.S. crude oil lost 67 cents to $76.17 a barrel in electronic trading on the New York Mercantile Exchange. It gained 62 cents on Friday.
Brent crude, the international standard, lost 78 cents to $81.41 a barrel.
The U.S. dollar fell to 149.08 Japanese yen from 149.28 yen. The euro fell to $1.0770 from $1.0784.
On Friday, the S&P 500 index rose 0.6%, finishing above 5,000 for the first time, at 5,026.61. This is the 10th record in less than a month for the index, which closed its 14th winning week in the last 15 to continue a journey that began around Halloween.
The Nasdaq Composite Index jumped 1.2% to within 0.4% of its own all-time high, set in 2021. It closed at 15,990.66.
The Dow Jones Industrial Average lagged, slipping 0.1% to 38,749 a day after setting a record.