New York, Aug. 17 (SANA)US stocks traded close to record levels Monday as investors awaited earnings from major retailers for further evidence of how high inflation and a slowing labour market are affecting consumer spending.

The S&P 500 slipped 0.1% but remained near Thursday’s record high. The Dow Jones Industrial Average fell 209 points, or 0.4%, by midday, while the Nasdaq Composite gained 0.2%.

Strong corporate profits have helped drive Wall Street’s rally. S&P 500 companies are on track to report year-on-year earnings growth of about 50% for the spring quarter, according to FactSet, exceeding analysts’ expectations.

Attention is now turning to results from Home Depot, Target and Walmart. The reports follow data showing that US retail spending unexpectedly declined in July as consumers faced persistent inflation and weaker employment conditions.

Investors are also monitoring the impact of the US-Iran war on energy prices. Brent crude rose 0.7% to $89.13 a barrel after fluctuating between $72 and $102 last month amid uncertainty over negotiations that could restore the free movement of oil tankers from the Persian Gulf.

The yield on the 10-year US Treasury note rose to 4.70% from 4.68% Friday after manufacturing activity in New York state exceeded expectations. The yield has climbed sharply since the start of the war as higher oil prices fuel inflation concerns and increase the prospect of further Federal Reserve interest-rate rises.

On Wall Street, L3Harris Technologies dropped 4.4% after Christopher Kubasik resigned as chairman and chief executive over conduct the company said was inconsistent with its values. Alphabet slipped 0.6%, while Constellation Brands fell 6.3% after Berkshire Hathaway disclosed that it had sold its entire stake in the drinks company.

European markets edged lower, while Asian shares advanced. Japan’s Nikkei 225 gained 0.7%, Hong Kong rose 1.3% and Shanghai climbed 1.4%.