U.S. Stocks Can’t Hang Onto Gains, Finish Lower


U.S. stocks wobbled and finished mostly lower Monday as investors waited for central bank meetings in the United States and Japan. Health care and technology companies took some of the biggest losses while banks rose.

Investors were indecisive as leaders of the Federal Reserve and Bank of Japan prepared to meet, and stocks swung several times between gains and losses. The Dow rose as much as 131 points early on, then fell as much as 30 points in the afternoon. Banks, utility companies and machinery makers rose. Bond yields edged higher and the dollar weakened.

While advancing stocks far outnumbered decliners, the Dow Jones industrial average dipped 3.63 points, or less than 0.1 percent, to 18,120.17. The Standard & Poor’s 500 index lost 0.04 points to 2,139.12. The Nasdaq composite fell 9.54 points, or 0.2 percent, to 5,235.03.

The Federal Reserve will meet Tuesday and announce its latest decision on interest rates the following day. Banks got a boost as some investors hoped that interest rates will rise, which would allow banks to make more money from lending. JPMorgan Chase rose 37 cents to $66.19 and Wells Fargo regained 58 cents, or 1.3 percent, to $46.01.

Technology products distributor Tech Data jumped after it said it will buy the technology solutions business of Avnet for $2.6 billion in cash and stock. Tech Data says the deal will give it operations in 35 countries. Its stock rose $15.46, or 22.3 percent, to $84.80 and Avnet gained $2.68, or 6.8 percent, to $41.89.

Meanwhile, network control company Infoblox agreed to be bought by Vista Equity Partners for $26.50 per share, or $1.51 billion. It surged $3.52, or 15.4 percent, to $26.35.

Despite those gains, the broader technology sector gave up an early advance and finished mostly lower. Apple, which surged last week and reached its highest price this year, lost $1.34, or 1.2 percent, to $113.58 and Intel fell 51 cents, or 1.4 percent, to $37.16.

Health website operator WebMD slumped after it said CEO David Schlanger is leaving the company by mutual agreement. Schlanger is being replaced by President Steven Zatz, who is in charge of WebMD’s advertising and sponsorship business. WebMD fell $2.95, or 5.7 percent, to $49.02 and it is down 27 percent since May 25.

Benchmark U.S. crude added 27 cents to $43.30 a barrel in New York. Brent crude, used to price international oils, rose 18 cents to $45.95 a barrel in London.

In other energy trading, wholesale gasoline lost 4 cents, or 2.8 percent, to $1.42 a gallon. Heating oil fell 1 cent to $1.39 a gallon. Natural gas retreated 1 cent to $2.93 per 1,000 cubic feet.

Gold rose $7.60 to $1,317.80 an ounce. Silver added 43 cents, or 2.3 percent, to $19.29 an ounce. Copper remained at $2.16 a pound.

U.S. government bond prices slipped. The yield on the 10-year U.S. Treasury note rose to 1.71 percent from 1.69 percent. The dollar fell to 101.81 yen from 102.42 yen. The euro rose to $1.1178 from $1.1151.

The FTSE 100 index of leading British shares climbed 1.5 percent and the CAC-40 in France rose 1.4 percent. Germany’s DAX was 1 percent higher. South Korea’s Kospi added 0.8 percent and Hong Kong’s Hang Seng index rose 0.9 percent. Australia’s stock market suspended trading after a couple of hours due to technical glitches. The S&P/ASX 200 finished little changed.

To Read The Full Story

Are you already a subscriber?
Click to log in!