By Medha Singh
(Reuters) - U.S. stocks edged higher on Monday boosted by technology shares ahead of Alphabet's results after the bell, but declines in healthcare and energy stocks kept gains in check.
A more than 2 percent rise from marquee companies such as Alphabet (NASDAQ:GOOGL) Inc, Apple Inc (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT) boosted the Nasdaq. The technology sector rose 1.13 percent.
Google-parent's quarterly report will round up a mixed bag of results from other FAANG stocks. Apple and Facebook Inc (NASDAQ:FB) posted better-than-expected quarterly results last week, while Netflix Inc (NASDAQ:NFLX) and Amazon.com Inc (NASDAQ:AMZN) gave downbeat current-quarter forecasts.
The energy sector fell 0.88 percent, the most among the seven major S&P sectors trading in the red, as oil prices fell more than 1 percent.
At current levels, the S&P 500 was about 8 percent away from its Sept. 20 record close and was helped recently by signs of progress in U.S.-China trade talks and as the Federal Reserve pledged to be patient with further interest rate hikes.
A stronger-than-expected jobs report on Friday underscored the strength in the domestic economy though concerns remained that a slowdown in the rest of the world could hurt U.S. earnings, with warnings from bellwethers including Caterpillar Inc (NYSE:CAT).
"We got through last week with the employment report and the Fed. I think the focus is more firmly on earnings this week," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"As the fourth quarter numbers are coming in, I think there is a concern around slowdown in the first quarter. Certainly the comparisons are going to be a lot tougher."
Nearly half of the S&P 500 companies that have reported fourth-quarter earnings so far, 71.4 percent beat analysts' estimates, according to IBES data from Refinitiv.
Since the earnings season kicked off three weeks ago, analysts' estimates for fourth-quarter profit growth have risen to 15.4 percent from 14.3 percent, but expectations for the first quarter of 2019 have dropped to 0.5 percent from 3.4 percent.
At 11:10 a.m. ET the Dow Jones Industrial Average was down 40.11 points, or 0.16 percent, at 25,023.78, the S&P 500 was up 1.49 points, or 0.06 percent, at 2,708.02 and the Nasdaq Composite was up 53.45 points, or 0.74 percent, at 7,317.32.
Allergan (NYSE:AGN) Plc dropped 3.37 percent after the FDA approved Evolus Inc's cheaper version of blockbuster Botox. Evolus jumped 20 percent.
Losses in UnitedHealth Group Inc (NYSE:UNH) and Johnson & Johnson (NYSE:JNJ) pulled the healthcare sector 0.98 percent lower and weighed on the blue-chip Dow and S&P 500.
In a bright spot, Ultimate Software Group Inc surged 19.51 percent after the HR software provider agreed to be bought by an investor group led by Hellman & Friedman in a $11 billion deal.
Advancing issues outnumbered decliners for a 1.03-to-1 ratio on the NYSE and a 1.48-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new lows, while the Nasdaq recorded 44 new highs and 10 new lows.