Traders are feeling confident in the upcoming quarterly earnings reports for many of the blue-chip companies trading on the S&P 500. According to Reuters, analysts anticipated an approximate 8 percent increase in second-quarter earnings from one year ago.
"After new highs that we saw last week, the market deserves a rest as investors await big earnings this week," said Dave Donabedian, of CIBC Atlantic Trust Private Wealth Management, to Reuters.
Companies trading on the Nasdaq are also bearing good news. According to CNBC, Netflix reported a boost in revenue, after adding just over 5 million users from Q1. The company noted that it planned to spend more than $1 billion in advertising in an attempt to increase market share over similar streaming websites like Hulu and Amazon Video.
Sevcon Inc., a manufacturer of electric vehicle parts, saw an increase in stock price by over 58 percent, after announcing that it would be acquired by BorgWarner.
"The proposed merger with BorgWarner provides substantial value to our stockholders and the chance for Sevcon to maximize previous growth investments and capitalize on greater opportunities as a part of a much larger organization with significant market presence," said Sevcon President and CEO Matt Boyle in a statement.