US close: Stocks end lower as Brexit concerns mount
US stocks finished in the red on Tuesday as investors returned from the long holiday weekend and as concerns about the impact of Brexit mounted.
The Dow Jones Industrial Average fell 0.61%, the S&P 500 dropped 0.68% and the Nasdaq declined 0.82%.
At the same time, oil prices retreated, with West Texas Intermediate down 4.1% to $46.82 a barrel and Brent crude off 4.02% at $48.16 per barrel.
Across the pond, Britain weighed the Bank of England’s Financial Stability Report (FSR) on Tuesday.
The BoE loosened UK banks’ requirements to hold extra capital and warned that risks from the country's Brexit vote had already started to "crystallise".
In its twice-yearly report, it looked to encourage banks to keep lending by trimming the countercyclical capital buffer rate to 0% from 0.5% with immediate effect and until at least June 2017.
It said the cuts to capital buffers will raise banks’ capacity for lending to UK households and businesses by up to £150bn.
“The Fed is now unlikely to consider rate hikes in the coming months as it analyses the impact of Brexit but the minutes could still provide insight into how close they were to raising and how much of a deterrent the UK’s decision could be. For another hike to remain on the table this year, the jobs data will have to remain strong overall and rebound from last month’s disappointment," said Craig Erlam, senior market analyst at Oanda.
The Federal Reserve releases the minutes of last month's policy meeting on Thursday while Friday sees the all-important non-farm payrolls report.
In currency markets, the pound fell to a fresh 31-year low against the US dollar – hitting $1.3025, intraday – amid ongoing concerns about the fallout from Brexit and after data showed UK services expansion weakened in June to match the 38-year low reached in April, amid a darkening outlook.
In US data, orders for manufactured goods fell by 1.0% to $455.2bn in May after two months of increases, according to the Commerce Department on Tuesday. It was worse than the 0.8% decline economists had been expecting and compared to a 1.8% increase in April.
Meanwhile, New York Fed President William Dudley said the Fed can be patient on raising interest rates due to uncertainty over the impact of Brexit on the US economy and low inflation. Meeting with business and community leaders in Binghamton, New York, he said that the US economy is doing “ok” but that it was too soon to tell the effects of Britain’s vote to leave the European Union last month.
On the corporate front, Chevron Corp, Exxon Mobil Corp and their partners said on Tuesday that they had committed to a $36.8bn oil expansion project in Kazakhstan. Shares in Chevron and Exxon dipped.
Shares of McDonald’s Corp. rose after the fast food chain won a lawsuit in the EU about other companies using the prefix “Mac” or “Mc”.
Goldman Sachs Group slumped after Oppenheimer cut the bank’s price target to $214 from $243.
S&P 500 - Risers
Extra Space Storage (EXR) $93.25 +2.87%
Realty Income Corp. (O) $71.47 +2.63%
Public Storage (PSA) $259.74 +2.32%
Kroger Co. (KR) $37.33 +2.13%
Humana Inc. (HUM) $177.21 +1.84%
Pinnacle West Capital Corp. (PNW) $82.56 +1.83%
Dr Pepper Snapple Group Inc. (DPS) $97.34 +1.77%
Campbell Soup Co. (CPB) $67.19 +1.71%
Macerich Co (MAC) $86.67 +1.67%
ProLogis (PLD) $49.54 +1.64%
S&P 500 - Fallers
Danaher Corp. (DHR) $80.40 -21.42%
Harley-Davidson Inc. (HOG) $48.37 -10.84%
Southwestern Energy Co. (SWN) $11.66 -10.38%
Murphy Oil Corp. (MUR) $30.09 -7.87%
Freeport-McMoRan Inc (FCX) $10.50 -7.49%
National Oilwell Varco Inc. (NOV) $32.14 -6.68%
Chesapeake Energy Corp. (CHK) $4.30 -6.32%
Marathon Oil Corp. (MRO) $14.72 -6.12%
Skyworks Solutions Inc. (SWKS) $58.82 -6.04%
Zions Bancorporation (ZION) $23.44 -5.94%
Dow Jones I.A - Risers
Johnson & Johnson (JNJ) $122.27 +0.81%
Procter & Gamble Co. (PG) $85.44 +0.78%
Coca-Cola Co. (KO) $45.43 +0.69%
Pfizer Inc. (PFE) $35.81 +0.67%
Verizon Communications Inc. (VZ) $56.53 +0.53%
Unitedhealth Group Inc. (UNH) $141.56 +0.50%
Wal-Mart Stores Inc. (WMT) $73.14 +0.45%
McDonald's Corp. (MCD) $120.76 +0.30%
Visa Inc. (V) $74.67 +0.26%
Merck & Co. Inc. (MRK) $58.00 +0.10%
Dow Jones I.A - Fallers
JP Morgan Chase & Co. (JPM) $59.55 -2.79%
Caterpillar Inc. (CAT) $74.38 -2.71%
Goldman Sachs Group Inc. (GS) $144.45 -2.56%
American Express Co. (AXP) $59.15 -2.54%
E.I. du Pont de Nemours and Co. (DD) $62.96 -2.18%
Boeing Co. (BA) $126.97 -2.10%
United Technologies Corp. (UTX) $100.62 -2.05%
Cisco Systems Inc. (CSCO) $28.33 -1.63%
Apple Inc. (AAPL) $95.04 -0.89%
Exxon Mobil Corp. (XOM) $93.02 -0.87%
Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $47.35 +1.48%
Activision Blizzard Inc. (ATVI) $40.15 +1.36%
Netflix Inc. (NFLX) $97.91 +1.28%
Dollar Tree Inc (DLTR) $94.98 +1.28%
Paychex Inc. (PAYX) $60.09 +1.09%
Verisk Analytics Inc. (VRSK) $81.62 +0.85%
Intuit Inc. (INTU) $112.74 +0.74%
Monster Beverage Corp (MNST) $160.91 +0.74%
Priceline Group Inc (PCLN) $1,275.03 +0.60%
Automatic Data Processing Inc. (ADP) $93.31 +0.60%
Nasdaq 100 - Fallers
Liberty Global plc Series A (LBTYA) $27.49 -7.44%
Liberty Global plc Series C (LBTYK) $27.01 -6.86%
Skyworks Solutions Inc. (SWKS) $58.82 -6.04%
Micron Technology Inc. (MU) $11.91 -4.72%
Western Digital Corp. (WDC) $44.72 -3.77%
Seagate Technology Plc (STX) $23.16 -3.62%
Dish Network Corp. (DISH) $50.81 -3.35%
NetApp Inc. (NTAP) $23.48 -3.33%
Bed Bath & Beyond Inc. (BBBY) $42.26 -3.01%
Autodesk Inc. (ADSK) $52.80 -2.83%