US close: Stocks drop ahead of EU referendum, Fed rate decision
US stocks declined on Monday on jitters ahead of Britain’s European Union referendum and the Federal Reserve’s interest rate decision.
At the close the Dow Jones Industrial Average fell 0.74%, the S&P 500 dropped 0.81% and the Nasdaq dipped 0.94%.
Worries about a possible Brexit grew on Monday after polls showed more Britons in favour of leaving the European Union before the 23 June referendum.
The ORB poll for the Independent showed 55.0% said they were now backing the option to leave the EU, against 45.0% who said they were supporting 'Remain'.
A poll by the Financial Times showed 'Leave' has taken the lead for the first time, at 46% versus the Remain camp's 44%.
According to Betfair the probability of a vote to stay in the EU is around 64%, down around 14 points from last Thursday when it was at 78%.
Uncertainty surrounding the EU referendum is also expected to prompt the Federal Reserve to hold fire on raising interest rates on Wednesday. Weak jobs data and dovish remarks by Fed chair Janet Yellen have also added to bets the central bank will keep rates unchanged at this week’s policy meeting.
Elsewhere, data showed China industrial production held steady in May but retail sales and investment growth slowed.
Industrial output rose 6% in May from a year earlier, the National Bureau of Statistics said, in line with the previous month’s growth and analysts’ expectations.
Retail sales rose 10% year-on-year in May, missing forecasts for a 10.1% increase and following a 10.1% gain the previous month.
China’s fixed asset investments, excluding rural, climbed 9.6% year-on-year in May compared to a 10.5% increase in April. Economists had pencilled in no change.
A drop in oil prices also weighed on investor sentiment with West Texas Intermediate down 0.92% to $48.62 per barrel and Brent crude down 0.93% to $50.07 per barrel at 2112 BST.
Baker Hughes said the number of rigs drilling for oil in the US rose by three in the week ended June 10, the second straight weekly increase, adding to worries about the global supply glut.
On the corporate front, Apple shares fell as the iPhone maker revealed details of its latest mobile operating system at its annual developers’ conference on Monday.
Symantec Corp. gained after the computer security group said it would buy Blue Coat Systems for $4.65bn.
Microsoft edged lower after as it agreed to buy LinkedIn for $26.2bn. Shares in LinkedIn surged.
S&P 500 - Risers
Symantec Corp. (SYMC) $18.22 +5.32%
Iron Mountain Inc (New) (IRM) $37.93 +1.99%
Transocean Ltd. (RIG) $10.96 +1.95%
Devon Energy Corp. (DVN) $35.79 +1.91%
Dentsply International Inc. (XRAY) $64.75 +1.79%
Nvidia Corp. (NVDA) $46.80 +1.30%
FLIR Systems Inc. (FLIR) $31.35 +1.23%
Endo International Plc (ENDP) $16.68 +1.21%
Ventas Inc. (VTR) $69.34 +1.11%
Allergan plc (AGN) $243.50 +1.07%
S&P 500 - Fallers
Marathon Petroleum Corporation (MPC) $33.97 -6.68%
Macy's Inc. (M) $31.60 -4.93%
Frontier Communications Co. (FTR) $4.87 -4.70%
Valero Energy Corp. (VLO) $51.03 -4.49%
United Continental Holdings Inc. (UAL) $44.05 -4.41%
Tenet Healthcare Corp. (THC) $27.70 -4.15%
Signet Jewelers Ltd (SIG) $85.51 -4.06%
Kohls Corp. (KSS) $35.31 -4.05%
American Airlines Group (AAL) $31.80 -4.04%
Tesoro Corp. (TSO) $74.25 -3.83%
Dow Jones I.A - Risers
Exxon Mobil Corp. (XOM) $90.60 +0.69%
McDonald's Corp. (MCD) $122.93 +0.47%
Intel Corp. (INTC) $32.18 +0.44%
Walt Disney Co. (DIS) $97.57 +0.24%
Chevron Corp. (CVX) $102.10 +0.12%
Dow Jones I.A - Fallers
Microsoft Corp. (MSFT) $50.14 -2.60%
Visa Inc. (V) $78.43 -2.18%
American Express Co. (AXP) $63.66 -2.02%
Coca-Cola Co. (KO) $45.11 -1.91%
Pfizer Inc. (PFE) $34.73 -1.59%
Apple Inc. (AAPL) $97.34 -1.51%
Merck & Co. Inc. (MRK) $56.10 -1.24%
E.I. du Pont de Nemours and Co. (DD) $66.75 -1.20%
Caterpillar Inc. (CAT) $75.26 -1.01%
Boeing Co. (BA) $129.91 -0.94%
Nasdaq 100 - Risers
Symantec Corp. (SYMC) $18.22 +5.32%
Walgreens Boots Alliance, Inc. (WBA) $84.36 +2.30%
Nvidia Corp. (NVDA) $46.80 +1.30%
Endo International Plc (ENDP) $16.68 +1.21%
Mylan Inc. (MYL) $44.78 +0.56%
Intuitive Surgical Inc. (ISRG) $644.48 +0.45%
Intel Corp. (INTC) $32.18 +0.44%
Verisk Analytics Inc. (VRSK) $79.10 +0.43%
Starbucks Corp. (SBUX) $55.04 +0.32%
Twenty-First Century Fox Inc Class B (FOX) $29.08 +0.31%
Nasdaq 100 - Fallers
Liberty Global plc Series A (LBTYA) $35.07 -4.10%
American Airlines Group (AAL) $31.80 -4.04%
Liberty Global plc Series C (LBTYK) $34.31 -3.16%
Microsoft Corp. (MSFT) $50.14 -2.60%
Whole Foods Market Inc. (WFM) $33.49 -2.39%
Facebook Inc. (FB) $113.97 -2.27%
Dish Network Corp. (DISH) $52.38 -2.03%
Seagate Technology Plc (STX) $22.68 -1.99%
Mondelez International Inc. (MDLZ) $44.17 -1.89%
Liberty Media Corporation - Class A (LMCA) $18.44 -1.86%