US close: No real gains as markets price in rate rise
US equity markets closed little changed on Monday as investors priced-in expectations of Federal Reserve interest hike this week, while oil prices continued their descent.
The Dow Jones Industrial Average finished the session off slightly, while the S&P 500 and Nasdaq closed in marginal positive territory.
The Fed's two-day policy meeting kicks off on Tuesday, amid expectations it will raise the funds rate by 25 basis points to between 0.75% and 1%.
Craig Erlam, senior market analyst at Oanda, said: "The clearly coordinated effort to convince investors that a rate hike is firmly on the table on Wednesday, from a position in which it appeared out the question, has almost worked too well with markets now almost fully pricing one in.
"The risk is that the Fed now struggles to live up to expectations and should it for whatever reason delay raising interest rates, it may have unintentionally dramatically misguided investors which could result in significant volatility come Wednesday."
Investors will also be watching out for changes to the Fed's interest rate hike timetable.
"Some analysts and economists have begun wondering if up to four hikes could now be delivered this year. However, wage inflation, the big miss on last Friday’s jobs report, remains weak, which could reduce the Fed’s appetite to continue hiking rates too quickly", strategists at Monex Europe said.
Interest rate announcements are also due from the Bank of England, the Bank of Japan and the Turkish central bank this week.
Meanwhile, oil prices were mixed after data from Baker Hughes on Friday showed the number of active rigs drilling for oil rose by eight to 617 last week, marking the eighth weekly rise.
"If the US keeps the current production pace, the OPEC cuts could no longer sustain the global oil prices but reducing supply. WTI-bears are touted at $50," said Ipek Ozkardeskaya, senior market analyst at London Capital Group.
Dow Jones - Risers
Walt Disney Co. (DIS) $111.52 0.54%
E.I. du Pont de Nemours and Co. (DD) $81.23 0.46%
Nike Inc. (NKE) $56.67 0.43%
Visa Inc. (V) $90.11 0.42%
Home Depot Inc. (HD) $147.43 0.39%
Johnson & Johnson (JNJ) $126.68 0.37%
Caterpillar Inc. (CAT) $92.64 0.36%
Procter & Gamble Co. (PG) $91.31 0.26%
Verizon Communications Inc. (VZ) $49.47 0.24%
Boeing Co. (BA) $179.05 0.20%
Dow Jones - Fallers
Merck & Co. Inc. (MRK) $64.15 -2.21%
Intel Corp. (INTC) $35.16 -2.09%
General Electric Co. (GE) $29.86 -1.39%
Chevron Corp. (CVX) $109.35 -1.14%
International Business Machines Corp. (IBM) $176.46 -0.77%
Coca-Cola Co. (KO) $42.03 -0.61%
Travelers Company Inc. (TRV) $122.15 -0.55%
Cisco Systems Inc. (CSCO) $34.10 -0.47%
Microsoft Corp. (MSFT) $64.71 -0.34%
McDonald's Corp. (MCD) $127.61 -0.29%
Nasdaq 100 - Risers
Citrix Systems Inc. (CTXS) $84.93 6.79%
Sirius XM Holdings Inc (SIRI) $5.44 4.82%
Nvidia Corp. (NVDA) $101.85 2.75%
Symantec Corp. (SYMC) $30.75 2.40%
Micron Technology Inc. (MU) $25.70 2.07%
JD.com, Inc. (JD) $31.69 2.03%
Netflix Inc. (NFLX) $143.52 1.87%
O'Reilly Automotive Inc. (ORLY) $274.43 1.78%
Maxim Integrated Products Inc. (MXIM) $45.78 1.69%
Lam Research Corp. (LRCX) $122.40 1.49%
Nasdaq 100 - Fallers
American Airlines Group (AAL) $42.37 -3.49%
Intel Corp. (INTC) $35.16 -2.09%
Alexion Pharmaceuticals Inc. (ALXN) $124.74 -2.02%
Liberty Interactive Corporation QVC Group (QVCA) $19.50 -1.52%
J.B. Hunt Transport Services Inc. (JBHT) $95.25 -1.45%
Viacom Inc. Class B (VIAB) $43.15 -1.33%
Discovery Communications Inc. Class C (DISCK) $26.77 -1.18%
Tractor Supply Company (TSCO) $71.70 -1.12%
Liberty Global Plc Lilac Class A (LILA) $22.39 -1.10%
Vertex Pharmaceuticals Inc. (VRTX) $92.95 -1.10%
S&P 500 - Risers
Citrix Systems Inc. (CTXS) $84.93 6.79%
Wynn Resorts Ltd. (WYNN) $104.30 4.77%
Chesapeake Energy Corp. (CHK) $5.33 3.50%
Transocean Ltd. (RIG) $12.61 2.85%
Nvidia Corp. (NVDA) $101.85 2.75%
United States Steel Corp. (X) $35.78 2.58%
Symantec Corp. (SYMC) $30.75 2.40%
Marathon Petroleum Corporation (MPC) $50.99 2.25%
Southwestern Energy Co. (SWN) $7.60 2.15%
Rockwell Collins Inc. (COL) $99.30 2.15%
S&P 500 - Fallers
Frontier Communications Co. (FTR) $2.53 -5.24%
GameStop Corp. (GME) $24.19 -3.93%
Urban Outfitters Inc. (URBN) $24.21 -3.81%
American Airlines Group (AAL) $42.37 -3.49%
United Continental Holdings Inc. (UAL) $69.85 -3.44%
Tenet Healthcare Corp. (THC) $18.63 -3.07%
Gap Inc. (GPS) $23.54 -3.01%
NRG Energy Inc. (NRG) $17.33 -2.97%
Macy's Inc. (M) $30.90 -2.62%
Southwest Airlines Co. (LUV) $54.49 -2.49%