US close: Stocks end touch lower despite strength in energy sector

US stocks ended a touch lower on Monday as investors weighed last week’s stronger-than-expected jobs report and disappointing Chinese trade data, with weakness in the healthcare sector offset by strength in energy shares.

The Dow Jones Industrial Average and the S&P 500 ended down 0.1%, while the Nasdaq slipped 0.2%.

Oil prices settled higher. West Texas Intermediate was up 2.6% to $42.89 a barrel and Brent crude was 2.1% higher at $45.21.

Traders continued to cheer Friday’s strong non-farm payrolls report, which showed the US economy added 255,000 jobs last months versus expectations of a 180,000 gain, boosting expectations of a rate hike by the Federal Reserve this year.

CMC Markets’ Michael Hewson said: “Certainly the odds have gone up that we could get a move, which suggests that this month’s Jackson Hole Symposium on 26 August is likely to be a key bellwether for the Fed’s appetite for a move higher, or whether the lack of inflation could stay there hand.”

However, the non-farm payrolls figures were offset by lacklustre Chinese trade figures on Monday. Chinese exports fell 4.4% in July, more than the 3.5% dip that was estimated. Imports declined 12.5%, exceeding the forecast for a 7% decrease.

On the company front, Mattress Firm rocketed after agreeing to be bought by South African furniture retailer Steinhoff International Holdings NV for about $2.4bn in cash.

Vail Resorts ended sharply higher after the company said it has agreed to buy Whistler Blackcomb Holdings in a cash and sock deal.

EverBank Financial gained ground after announcing that it would be acquired by financial services company TIAA in a deal worth around $2.5bn.

On the downside, Wal-Mart Stores was sitting lower after confirming that it has agreed to buy e-commerce group Jet.com for approximately $3bn in cash, while Allergan was in the red after reporting quarterly sales that missed expectations.