US close: Stocks end mostly lower but Dow notches up another record
US equity markets ended mostly lower on Monday, but the Dow Jones Industrial Average notched up its sixth consecutive record close, as oil prices rose and investors looked ahead to the Federal Reserve policy meeting later this week.
The Dow closed up 0.2%, the S&P 500 fell 0.1% and the Nasdaq declined 0.6%.
Meanwhile, oil prices settled in the black but off highs after non-OPEC countries agreed to cut production by 558,000 barrels per day at the weekend, with the majority of the cuts pledged by Russia.
Comments from Saudi Arabia’s energy minister Khalid al-Falih also helped to underpin oil prices, as he said the country will “cut substantially to be below” the target agreed in November by the cartel.
West Texas Intermediate was up 1.5% to $52.29 a barrel and Brent crude was up 1.6% at $55.24.
With little in the way of macroeconomic news to drive markets, investors were looking ahead to the Fed’s two-day meeting which kicks off on Tuesday, with a 25 basis point rate hike largely priced in.
CMC Markets’ Michael Hewson said: "Some of today’s caution could well be predicated on some caution that the recent sharp rise in the US dollar might well prompt some Fed policymakers to soft pedal and go with a dovish hike.
“While no-one expects the Fed to do anything other than hike by 25 basis points the tone of the subsequent statement and press conference could well be dovish.”
In corporate news, defence contractor Lockheed Martin dropped after President-elect Donald Trump tweeted that the cost for the F35 stealth fighter program is “out of control”. This followed a similar tweet last week when he said that an order for new Air Force One planes should be cancelled, sending Boeing shares crashing.
Alexion Pharmaceuticals tumbled as the company’s interim chief executive officer and financial chief stepped down following an investigation into its sales practices.
Viacom Inc and CBS Corp were both in the red after National Amusements withdrew its support for a merger of the two companies.
21st Century Fox was also on the back foot following reports the company’s plans to buy British broadcaster Sky may be met with shareholder opposition.
On the upside, Boeing edged up after securing a deal worth up to $16.6bn to sell 80 jetliners to Iran, the latest deal for the country after economic sanctions were lifted in January.
Chipotle Mexican Grill rose after it was confirmed that founder Steve Ells will be the only chief executive after co-chief Monty Moran retires in 2017.