US close: Markets end lower as geopolitical tensions tighten
US stocks traded lower on Monday as geopolitical concerns weighed on investors' minds, while they also continued to mull over a prospective rate hike by the Federal Reserve next week.
The Dow Jones Industrial Average was down 0.24% at 20,954.32, the S&P 500 fell 0.33% to 2,375.31 and the Nasdaq 100 was 0.25% weaker at 5,360.31.
Meanwhile, West Texas Intermediate was down 0.32% at $53.16 per barrel and Brent crude rose 0.07% to $55.94.
During a speech in Chicago on Friday, Fed chair Janet Yellen said: “We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect.
"Indeed, at our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.”
Ipek Ozkardeskaya, senior market analyst at London Capital Group, said that Yellen left little to the imagination for an interest rate hike and “also hinted that there could be more tightening in 2017, meaning that the Fed could raise rates more than three times anticipated by the markets.
“The US 10-year yields are now ready to successfully test the 2.5%”.
Elsewhere, investors were digesting news that North Korea fired four missiles that fell into the Sea of Japan, with three falling in Japan’s exclusive economic zone, early on Monday morning, Seoul time.
In corporate news, shares of General Motors were down 0.86% after it said it will sell its European unit with the Opel and Vauxhall brands for $2.3bn to PSA Group.
US-listed shares in Deutsche Bank dropped 3.72% after it announced plans for a €8bn share sale to bolster its capital position.
Time Warner fell 0.65% after it was downgraded to ‘neutral’ from ‘buy’ by UBS, while Albemarle Corp was down 2.54% after Citi downgraded the chemical company to ‘neutral’ from ‘buy’.
Snap fell 12.26% following the surge in shares at its debut on the New York Stock Exchange last week.
On the data front, factory orders rose 1.2% in January, from 1.3% in December and more than the 1% expected.
Excluding transportation, factory orders increased 0.3%, while industrial machinery orders were up 6.6% and photographic equipment orders fell 15%.
Dow Jones - Risers
Caterpillar Inc. (CAT) $95.66 0.57%
Exxon Mobil Corp. (XOM) $82.82 0.45%
Unitedhealth Group Inc. (UNH) $168.70 0.30%
E.I. du Pont de Nemours and Co. (DD) $79.82 0.26%
International Business Machines Corp. (IBM) $180.47 0.23%
Visa Inc. (V) $88.94 0.17%
Nike Inc. (NKE) $56.77 0.12%
McDonald's Corp. (MCD) $128.03 0.10%
Microsoft Corp. (MSFT) $64.27 0.03%
Johnson & Johnson (JNJ) $123.73 -0.06%
Dow Jones - Fallers
Travelers Company Inc. (TRV) $122.42 -1.46%
JP Morgan Chase & Co. (JPM) $91.93 -0.95%
Intel Corp. (INTC) $35.57 -0.92%
Coca-Cola Co. (KO) $42.18 -0.71%
Boeing Co. (BA) $180.93 -0.69%
United Technologies Corp. (UTX) $111.66 -0.61%
Walt Disney Co. (DIS) $110.67 -0.51%
Pfizer Inc. (PFE) $34.35 -0.49%
American Express Co. (AXP) $79.50 -0.48%
Home Depot Inc. (HD) $147.16 -0.46%
S&P 500 - Risers
Range Resources Corp. (RRC) $28.47 4.13%
Cabot Oil & Gas Corp. (COG) $23.15 3.53%
Southwestern Energy Co. (SWN) $7.94 2.98%
Netflix Inc. (NFLX) $141.94 2.01%
Marathon Oil Corp. (MRO) $16.47 1.79%
Signet Jewelers Ltd (SIG) $65.60 1.58%
Activision Blizzard Inc. (ATVI) $47.81 1.57%
Eog Resources Inc. (EOG) $100.07 1.52%
Alcoa Corporation (AA) $36.93 1.51%
Devon Energy Corp. (DVN) $43.94 1.36%
S&P 500 - Fallers
Endo International Plc (ENDP) $11.40 -6.94%
Kohls Corp. (KSS) $39.40 -4.69%
Csra Inc. (CSRA) $28.67 -4.28%
Frontier Communications Co. (FTR) $2.76 -3.83%
First Solar Inc. (FSLR) $33.33 -3.70%
Transocean Ltd. (RIG) $13.05 -3.55%
Westrock Company (WRK) $52.16 -3.48%
Macy's Inc. (M) $30.69 -3.40%
United Continental Holdings Inc. (UAL) $73.14 -3.24%
American Airlines Group (AAL) $45.31 -3.23%
Nasdaq 100 - Risers
Liberty Global Plc Lilac Class C (LILAK) $24.23 3.02%
Liberty Global Plc Lilac Class A (LILA) $24.05 2.56%
Netflix Inc. (NFLX) $141.94 2.01%
Liberty Interactive Corporation QVC Group (QVCA) $19.21 1.86%
Activision Blizzard Inc. (ATVI) $47.81 1.57%
Liberty Global plc Series C (LBTYK) $34.58 1.41%
Expedia Inc. (EXPE) $121.49 1.14%
CA Inc. (CA) $32.82 1.05%
Liberty Global plc Series A (LBTYA) $35.24 1.03%
Regeneron Pharmaceuticals Inc. (REGN) $381.93 0.86%
Nasdaq 100 - Fallers
American Airlines Group (AAL) $45.31 -3.23%
Autodesk Inc. (ADSK) $82.94 -2.79%
Mylan Inc. (MYL) $44.04 -2.52%
Monster Beverage Corp (MNST) $46.98 -2.21%
Biomarin Pharmaceutical Inc. (BMRN) $91.90 -2.18%
Express Scripts Holding Co (ESRX) $70.05 -2.14%
Costco Wholesale Corp. (COST) $166.73 -2.07%
Incyte Corp. (INCY) $134.38 -1.85%
Cognizant Technology Solutions Corp. (CTSH) $58.83 -1.75%
JD.com, Inc. (JD) $30.41 -1.68%