US close: Equities edge lower as commodities remain under pressure

The Dow Jones Industrial Average closed down 31 points to 17,792.68, while the S&P 500 and the Nasdaq were three and 12 points lower, respectively.

Gold under the cosh, oil rebounds

Commodities were under pressure, as the dollar strengthened on the increasing likelihood the Federal Reserve will raise interest rates next month.

As of 2107 GMT, the greenback was broadly flat against the yen and gained 0.50 and 0.18% against the pound and the euro respectively, while spot gold fell 0.85% to $1,068.80.

“Gold remains fundamentally bearish and with the direction completely dictated by US interest rate expectations, a rate increase in December threatens to send gold back towards its lows and may invite an opportunity for a further decline to $1,050,” said FXTM research analyst Lukman Otunuga.

Meanwhile, West Texas Intermediate crude was down 0.02% to $41.89 a barrel, while Brent gained 0.70% to $44.97.

Oil prices looked recouped some of their earlier losses after the Saudi government said it was willing to use all measures necessary to ensure a stable oil market.

"The Cabinet stressed the Kingdom´s role in the stability of the oil market its constant readiness and continuing pursuit to cooperate with all oil producing and exporting countries," a statement said.

On the macroeconomic front, according to the National Association of Realtors, existing home sales declined 3.4% month-on-month to a seasonally-adjusted annual rate of 5.36m, compared with consensus for a 2.7% decline to 5.40m.

However, despite the decline, home sales remained 3.9% higher year-on-year, while median home prices rose 5.8% over the past 12 months to $219,600.

Meanwhile, the “flash” reading of the Markit manufacturing purchasing managers’ index fell to a 25-month low of 52.6 in November, down from a 54.1 reading in October and its lowest level since October 2013, reflecting a decline in all the five components.

"With the trade-weighted dollar at the highest levels in over a decade, the headwinds facing US manufacturing have yet to subside," said analysts at Barclays.

Wall Street faces a shortened week, with markets closed on Thursday for Thanksgiving Day and open only half day on Friday (with closing time set for 1800 GMT).

“History teaches us that indices tend to rise in the week leading up to Thanksgiving, as US traders look forward to their seasonal feast, so stock market bears may find it hard to gain any real traction in coming sessions,” said IG’s senior market analyst Chris Beauchamp.

Pfizer and Allergan agree merger

In company news, drug giant Pfizer slid 2.69% after it agreed to buy botox-maker Allergan for $160bn, in a deal set to create the world’s biggest drug-maker.

GameStop slumped 4.18% after its third quarter sales and adjusted earnings missed analysts’ expectations.

Going the other way Tyson Foods surged 10.2% after the firm said it would increase quarterly dividends and buybacks in 2016. However, the company's fourth quarter adjusted earnings fell short of estimates.

KaloBios Pharmaceuticals shares jumped 116.4% following the appointment of Martin Shkreli as its new chief executive and chairman after his investor group has acquired 70% of the company’s stock.

Elsewhere, Asian equity markets began the week on a mixed note, while European stocks traded lower despite a series of encouraging PMI reports.

S&P 500 - Risers
Tyson Foods Inc. (TSN) $48.11 +10.22%
Alcoa Inc. (AA) $9.07 +4.43%
Chipotle Mexican Grill Inc. (CMG) $559.46 +4.34%
Teradata Corp. (TDC) $29.67 +4.29%
Macy's Inc. (M) $40.04 +3.73%
Autodesk Inc. (ADSK) $62.71 +3.57%
Kellogg Co. (K) $68.57 +3.50%
Peabody Energy Corp. (BTU) $11.67 +3.37%
Coach Inc. (COH) $31.56 +3.31%
Constellation Brands Inc. Class A (STZ) $142.11 +3.26%

S&P 500 - Fallers
United States Steel Corp. (X) $8.01 -7.93%
CONSOL Energy Inc. (CNX) $7.34 -6.73%
Electronic Arts Inc. (EA) $68.98 -4.75%
Analog Devices Inc. (ADI) $56.80 -4.41%
Perrigo Company plc (PRGO) $148.35 -4.24%
GameStop Corp. (GME) $37.62 -4.18%
Mattel Inc. (MAT) $23.55 -4.03%
Keurig Green Mountain Inc (GMCR) $45.71 -3.65%
Viacom Inc. Class B (VIAB) $50.85 -3.53%
Allergan plc (AGN) $301.82 -3.41%

Dow Jones I.A - Risers
Home Depot Inc. (HD) $132.57 +1.81%
Coca-Cola Co. (KO) $42.96 +1.25%
Chevron Corp. (CVX) $90.03 +1.15%
Exxon Mobil Corp. (XOM) $80.30 +0.64%
McDonald's Corp. (MCD) $114.60 +0.61%
Wal-Mart Stores Inc. (WMT) $60.26 +0.32%
Johnson & Johnson (JNJ) $102.76 +0.27%
Procter & Gamble Co. (PG) $75.98 +0.21%
International Business Machines Corp. (IBM) $138.51 +0.01%

Dow Jones I.A - Fallers
Pfizer Inc. (PFE) $31.32 -2.67%
Apple Inc. (AAPL) $117.75 -1.30%
Goldman Sachs Group Inc. (GS) $189.30 -1.13%
JP Morgan Chase & Co. (JPM) $66.88 -0.98%
Verizon Communications Inc. (VZ) $45.00 -0.86%
Boeing Co. (BA) $148.31 -0.73%
Unitedhealth Group Inc. (UNH) $112.15 -0.73%
Intel Corp. (INTC) $34.47 -0.55%
Walt Disney Co. (DIS) $119.43 -0.53%
Cisco Systems Inc. (CSCO) $27.43 -0.51%

Nasdaq 100 - Risers
Autodesk Inc. (ADSK) $62.71 +3.57%
JD.com, Inc. (JD) $30.68 +2.30%
Dollar Tree Inc (DLTR) $69.55 +1.65%
Amgen Inc. (AMGN) $162.47 +1.60%
Amazon.Com Inc. (AMZN) $679.00 +1.58%
Monster Beverage Corp (MNST) $150.40 +1.56%
Biogen Inc (BIIB) $294.25 +1.41%
Alexion Pharmaceuticals Inc. (ALXN) $175.97 +1.37%
Vertex Pharmaceuticals Inc. (VRTX) $132.29 +1.33%
Stericycle Inc. (SRCL) $123.30 +1.14%

Nasdaq 100 - Fallers
Vimpelcom Ltd Ads (VIP) $3.43 -7.55%
Electronic Arts Inc. (EA) $68.98 -4.75%
Analog Devices Inc. (ADI) $56.80 -4.41%
Mattel Inc. (MAT) $23.55 -4.03%
Keurig Green Mountain Inc (GMCR) $45.71 -3.65%
Viacom Inc. Class B (VIAB) $50.85 -3.53%
Intuit Inc. (INTU) $101.03 -2.10%
Mylan Inc. (MYL) $50.88 -1.91%
Linear Technology Corp. (LLTC) $45.10 -1.81%
Lam Research Corp. (LRCX) $76.99 -1.77%