US close: Stocks fall as traders look ahead to non-farm payrolls report
US stocks declined at the close on Tuesday as oil prices dropped and as traders awaited the all-important non-farm payrolls report.
The Dow Jones Industrial Average fell 0.26% to 18,454.30 points, the S&P 500 edged down 0.20% to 2,176.12 points and the Nasdaq shed 0.18% to 5,222.99 points.
At the same time oil prices fell as the dollar strengthened, making crude imports more expensive for holders of other currencies. West Texas Intermediate crude dropped 1.7% to $48.43 per barrel and Brent fell 1.14% to $46.45 per barrel at 2052 BST.
The dollar rose 0.21% against the pound, increased 0.40% against the euro and jumped 1.07% versus the yen.
Investors are holding out for the monthly official jobs report on Friday after Fed Chair Janet Yellen said the next interest rate hike depends on the strength of incoming economic data. In her speech at the Jackson Hole symposium last Friday, Yellen noted that the economy is improving and suggested the case for a move on rates had strengthened in recent months.
Joshua Mahony, market analyst at IG, said: “Much like last week, which saw traders spend their time anticipating Friday’s speech from Yellen, this week will also see a crescendo of anticipation into the August payrolls figure, which according to Stanley Fischer represents a deal breaker regarding whether the Fed will indeed raise rates in 2016.
“Following relatively robust numbers in the past two months, another 200K-plus figure could provide the spark needed for the committee to act this year, with markets currently pricing in a 61.4% chance. Given the threat associated with the US election in November, the likelihood is that December provides the best chance for action from the Fed.”
Fed Reserve vice chair Stanley Fischer told Bloomberg on Tuesday that while negative interest rates seem to be working in other countries, the US central bank is not “planning to do anything in that direction”.
In economic data, US house price growth slowed in June. The S&P Core Logic Case-Shiller 20-City Composite index rose 5.1% year-on-year, compared to expectations for an increase of 5.2% and May's revised 5.3% increase.
A gauge of US consumer confidence rose to the highest level in nearly a year in August. The Conference Board’s consumer confidence index edged up to 101.1 in August from 96.7 in July, beating estimates of 97.0.
“On the whole, the US consumer has remained a robust proposition within an international context of weakening demand, and the positive data may put the long-speculated interest rate hike further up Yellen’s agenda,” said Dennis de Jong, managing director of UFX.com.
“The real test, however, is whether this confidence begins to waver as we enter what will surely be the most contentious US presidential race in living memory.”
On the corporate front, Abercrombie & Fitch shares plunged after it reported a second quarter loss that was worse than expected as sales fell for a 14th straight quarter.
Apple was under the cosh after the European Commission ruled that Ireland should recover up to €13bn from the technology giant in back taxes.
Hershey shares tumbled after Mondelez International said late on Monday it has ended its bid to buy the chocolate maker.
United Continental Holdings was in the black after it said late on Monday that it has named Scott Kirby as president.
Dow Jones - Risers
Goldman Sachs Group Inc. (GS) $169.46 1.55%
JP Morgan Chase & Co. (JPM) $67.50 0.82%
Intel Corp. (INTC) $35.70 0.42%
Visa Inc. (V) $81.17 0.37%
General Electric Co. (GE) $31.36 -0.00%
Walt Disney Co. (DIS) $94.87 -0.00%
Travelers Company Inc. (TRV) $118.46 -0.02%
McDonald's Corp. (MCD) $115.37 -0.03%
American Express Co. (AXP) $65.45 -0.11%
Wal-Mart Stores Inc. (WMT) $71.32 -0.11%
Dow Jones - Fallers
Boeing Co. (BA) $130.82 -1.57%
Nike Inc. (NKE) $58.01 -1.06%
Home Depot Inc. (HD) $134.10 -0.84%
Procter & Gamble Co. (PG) $87.56 -0.84%
Apple Inc. (AAPL) $106.00 -0.77%
Caterpillar Inc. (CAT) $82.48 -0.75%
Coca-Cola Co. (KO) $43.23 -0.71%
Pfizer Inc. (PFE) $34.88 -0.66%
United Technologies Corp. (UTX) $107.35 -0.57%
Merck & Co. Inc. (MRK) $62.71 -0.48%
S&P 500 - Risers
Mosaic Company (MOS) $30.45 8.94%
United Continental Holdings Inc. (UAL) $50.99 8.60%
CF Industries Holdings Inc. (CF) $26.20 4.88%
Mondelez International Inc. (MDLZ) $44.74 3.95%
Tesoro Corp. (TSO) $75.83 2.82%
Morgan Stanley (MS) $32.19 2.47%
American Airlines Group (AAL) $37.05 2.43%
Bank of America Corp. (BAC) $16.19 2.21%
Perrigo Company plc (PRGO) $90.99 2.19%
Wells Fargo & Co. (WFC) $50.63 2.16%
S&P 500 - Fallers
Hershey Foods Corp. (HSY) $99.66 -10.75%
Newmont Mining Corp. (NEM) $38.60 -5.65%
Gap Inc. (GPS) $25.34 -4.31%
Freeport-McMoRan Inc (FCX) $10.56 -3.83%
United States Steel Corp. (X) $19.51 -3.58%
Marathon Oil Corp. (MRO) $15.55 -2.75%
NRG Energy Inc. (NRG) $12.19 -2.64%
Bristol-Myers Squibb (BMY) $57.24 -2.60%
Urban Outfitters Inc. (URBN) $36.23 -2.53%
Dollar General Corp (DG) $75.65 -2.37%
Nasdaq 100 - Risers
Mondelez International Inc. (MDLZ) $44.74 3.95%
American Airlines Group (AAL) $37.05 2.43%
Charter Communications Inc. (CHTR) $256.03 1.47%
eBay Inc. (EBAY) $31.77 1.18%
Liberty Media Corporation - Series C (LMCK) $21.38 1.09%
Baidu Inc. (BIDU) $175.45 1.04%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $35.85 0.93%
Yahoo! Inc. (YHOO) $42.58 0.76%
Liberty Media Corporation - Class A (LMCA) $21.51 0.75%
Activision Blizzard Inc. (ATVI) $41.58 0.70%
Nasdaq 100 - Fallers
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $244.97 -3.59%
Tesla Motors Inc (TSLA) $211.34 -1.79%
Dollar Tree Inc (DLTR) $84.11 -1.66%
Viacom Inc. Class B (VIAB) $40.85 -1.47%
Lam Research Corp. (LRCX) $92.98 -1.44%
Monster Beverage Corp (MNST) $153.81 -1.37%
Skyworks Solutions Inc. (SWKS) $74.20 -1.36%
T-Mobile Us, Inc. (TMUS) $46.10 -1.35%
Vodafone Group Plc ADS (VOD) $30.63 -1.32%
Ross Stores Inc. (ROST) $62.30 -1.28%