US close: Stocks end a little weaker; investors eye central bank meetings
US stocks closed a little lower on Monday as investors looked ahead to a busy week in terms of corporate releases and rate decisions by the Federal Reserve and the Bank of Japan.
The Dow Jones Industrial Average ended down 0.4%, the S&P 500 fell 0.3% and the Nasdaq was off 0.1%.
At the same time, oil prices were weaker, denting energy stocks such as Chevron and Exxon Mobil. West Texas Intermediate was down 2.6% at $43.05 a barrel while Brent crude was 2.3% lower at $44.65.
The main focus in the US this week will be the Fed’s rate announcement on Wednesday, with market participants expecting the bank to keep rates on hold.
Ranko Berich, head of market analysis at Monex Europe, said: “The latest US data contains plenty of evidence to help the hawks on the FOMC make their case. Price and labour market data indicate a tightening labour market and rising wages, and, after the dip seen in May, June’s jobs report showed job creation and wage growth once again beginning to pick up.
“The Fed may well choose to sit tight and wait for more data, but considering the strong data we’ve seen recently, markets could hardly be less prepared for a hike this week. Federal funds futures are priced for an approximately 8% chance of an increase, after the FOMC has repeatedly found new excuses to avoid raising rates at each successive meeting.”
Investors will also be eyeing a rate announcement from the Bank of Japan on Friday. Deutsche Bank’s economists expect a cut in the interest rate on its policy-rate balance from -10bps to -20bps and an increase in its purchasing of ETFs and Japanese real estate investment trusts to an annual rate of Y6tn and Y180bn, respectively. They see little chance of an increase in the Japanese government bond purchasing pace.
In corporate news, Verizon Communications nudged lower after confirming that it has agreed to buy Yahoo Inc for $4.83bn.
Kimberly Clark was lower following the release of its second-quarter results, while CVS Health lost ground after it said it is making naloxone, an opioid overdose-reversal drug, available without prescription across Texas.
Shares in drug developer Ocular Therapeutix were weaker after the US Food and Drug Administration denied approval of its treatment for post-operative eye pain.
Telecommunications company Sprint Corp bucked the trend, surging after its first-quarter revenue surpassed analysts’ expectations.
S&P 500 - Risers
Micron Technology Inc. (MU) $13.92 +6.02%
Nordstrom Inc. (JWN) $42.74 +4.60%
L Brands Inc (LB) $74.12 +3.43%
Macy's Inc. (M) $36.46 +3.34%
Gap Inc. (GPS) $25.13 +3.25%
Urban Outfitters Inc. (URBN) $29.97 +2.78%
Whole Foods Market Inc. (WFM) $34.57 +2.52%
Activision Blizzard Inc. (ATVI) $42.40 +2.32%
Gilead Sciences Inc. (GILD) $88.55 +2.31%
Netflix Inc. (NFLX) $87.66 +2.06%
S&P 500 - Fallers
Roper Technologies Inc (ROP) $163.41 -5.71%
Chesapeake Energy Corp. (CHK) $5.14 -4.64%
Devon Energy Corp. (DVN) $36.10 -4.37%
Cimarex Energy Co (XEC) $113.69 -3.96%
Newfield Exploration Co (NFX) $42.67 -3.96%
CIGNA Corp. (CI) $140.32 -3.89%
Marathon Oil Corp. (MRO) $13.57 -3.79%
Williams Companies Inc. (WMB) $23.63 -3.63%
Cabot Oil & Gas Corp. (COG) $23.57 -3.32%
E*TRADE Financial Corp. (ETFC) $24.99 -3.18%
Dow Jones I.A - Risers
Nike Inc. (NKE) $57.14 +0.72%
E.I. du Pont de Nemours and Co. (DD) $68.88 +0.66%
International Business Machines Corp. (IBM) $162.65 +0.36%
Wal-Mart Stores Inc. (WMT) $73.76 +0.29%
Microsoft Corp. (MSFT) $56.73 +0.28%
Travelers Company Inc. (TRV) $117.48 +0.28%
Cisco Systems Inc. (CSCO) $30.79 +0.26%
Pfizer Inc. (PFE) $36.80 +0.16%
Goldman Sachs Group Inc. (GS) $160.55 +0.09%
Intel Corp. (INTC) $34.69 +0.09%
Dow Jones I.A - Fallers
Chevron Corp. (CVX) $103.10 -2.42%
Exxon Mobil Corp. (XOM) $92.20 -1.93%
Unitedhealth Group Inc. (UNH) $141.73 -1.36%
Apple Inc. (AAPL) $97.34 -1.34%
General Electric Co. (GE) $31.64 -1.31%
Visa Inc. (V) $78.94 -1.21%
Caterpillar Inc. (CAT) $78.69 -0.87%
McDonald's Corp. (MCD) $127.40 -0.67%
Coca-Cola Co. (KO) $45.57 -0.57%
United Technologies Corp. (UTX) $104.63 -0.48%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $13.92 +6.02%
Tesla Motors Inc (TSLA) $230.01 +3.48%
Whole Foods Market Inc. (WFM) $34.57 +2.52%
Check Point Software Technologies Ltd. (CHKP) $83.64 +2.34%
Activision Blizzard Inc. (ATVI) $42.40 +2.32%
Gilead Sciences Inc. (GILD) $88.55 +2.31%
Netflix Inc. (NFLX) $87.66 +2.06%
Vertex Pharmaceuticals Inc. (VRTX) $95.77 +2.00%
Ross Stores Inc. (ROST) $61.13 +1.93%
Nvidia Corp. (NVDA) $55.68 +1.85%
Nasdaq 100 - Fallers
Yahoo! Inc. (YHOO) $38.32 -2.69%
Dish Network Corp. (DISH) $52.25 -2.30%
Express Scripts Holding Co (ESRX) $77.39 -1.86%
American Airlines Group (AAL) $35.80 -1.54%
Liberty Global plc Series C (LBTYK) $30.21 -1.50%
Sirius XM Holdings Inc (SIRI) $4.15 -1.43%
Apple Inc. (AAPL) $97.34 -1.34%
Twenty-First Century Fox Inc Class B (FOX) $27.45 -1.15%
Liberty Global plc Series A (LBTYA) $31.00 -1.15%
Charter Communications Inc. (CHTR) $240.69 -1.14%