U.S. stocks edged lower in morning trading Monday as investors sized up the latest company earnings and deal news. The major stock indexes were coming off new highs set last week following a strong U.S. jobs report. Energy stocks surged the most as oil prices rose, while health care companies were the biggest laggard.
KEEPING SCORE: The Dow Jones industrial average slipped seven points to 18,536 as of 11:10 a.m. Eastern time. The Standard & Poor’s 500 index slid less than one point to 2,182. The Nasdaq composite index fell nine points, or 0.2 percent, to 5,211.
THE QUOTE: The dip in the markets likely reflects traders selling in the wake of the record highs set by the S&P 500 index and Nasdaq on Friday, said JJ Kinahan, chief strategist at TD Ameritrade.
“It’s a little bit of profit-taking,” he said. “We’re coming off a good employment number and we know the consumer’s been strong.”
DASHED EXPECTATIONS: Allergan PLC slumped 3.3 percent after the Botox-maker’s second-quarter revenue fell short of Wall Street’s forecasts. The stock lost $8.33 to $245.42.
ONLINE PLAY: Wal-Mart Stores slipped 0.7 percent after the retail giant agreed to buy fast-growing online retail newcomer Jet.com for $3 billion in cash and another $300 million in stock. The deal underscores how serious Wal-Mart is about challenging online leader Amazon. Shares in Wal-Mart shed 53 cents to $73.23.
PUMPED: Several oil and natural gas companies were moving higher. Marathon Oil gained 70 cents, or 5.1 percent, to $14.57, while Murphy Oil rose $1.24, or 4.5 percent, to $29.06. Chesapeake Energy added 20 cents, or 4 percent, to $5.09.
EUROPEAN MARKETS: Germany’s DAX was up 0.7 percent after government figures showed that industrial production posted a better-than-anticipated gain in June. France’s CAC 40 was up 0.2 percent, while Britain’s FTSE 100 index was flat.
ASIA’S DAY: Markets in Asia moved mostly higher despite a report showing China’s exports fell again in July, while a decline in imports accelerated. Hong Kong’s Hang Seng gained 1.6 percent, while the Shanghai Composite Index rose 0.9 percent. Tokyo’s Nikkei 225 surged 2.4 percent. Sydney’s S&P-ASX 200 added 0.4 percent, while Seoul’s Kospi rose 0.9 percent. India’s Sensex added 0.2 percent. Benchmarks in Taiwan, New Zealand and Thailand also rose, while Singapore declined.
ENERGY: Benchmark U.S. crude was up $1.11, or 2.7 percent, at $42.91 per barrel in New York. The contract shed 13 cents on Friday. Brent crude, used to price international oils, was up $1.16, or 2.6 percent, at $45.43 per barrel in London. It lost 2 cents on Friday.
BONDS AND CURRENCIES: Bond prices were little changed. The yield on the 10-year Treasury note held steady at 1.59 percent. In currency markets, the dollar rose to 102.55 yen from Friday’s 101.75 yen. The euro edged down to $1.1078 from $1.1091.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info