Publications
Partners
New York - Wall Street stocks dropped on Monday as markets digested recent gains at the start of a week heavy on economic news, including a Federal Reserve policy meeting.
Key events this week include the October US jobs report, the expected announcement by President Donald Trump of the next head of the Fed, and earnings from Apple and other large companies.
Analysts attributed the weakness on Monday primarily to buyers' fatigue after a slew of stock market records over the last month.
Investors also were cautious after the first indictments connected to the investigation into Russia's connections to Trump's presidential campaign, although the cases do not directly connect to Trump himself.
The probe is seen as a potential threat to tax cuts that have helped propel the market higher.
The Dow Jones industrial Average fell 0.4% to close the session at 23 348.74.
The broad-based S&P 500 sank 0.3% to 2 572.83, while the tech-rich Nasdaq Composite Index declined less than 0.1% to 6 698.96.
The Nasdaq and S&P 500 finished at all-time highs on Friday.
Merck weighed on the Dow, slumping 6.1% following downgrades in response to the drug maker’s disappointing earnings on Friday and after it pulled a European application for its cancer drug Keytruda.
Sprint sank 9.3% and T-Mobile US shed 5.4% following a Japanese media report that merger talks between the third- and fourth-largest wireless operators had been called off.
Apple, which reports earnings on Thursday, jumped 2.3%, gaining for a second straight session on bullish commentary from the tech company about its next iPhone.
Mattel surged 11.3%, bouncing after a big drop on Friday on weak earnings, after BMO Capital Markets said the toy maker could be a takeover target.
In merger news, home builder CalAtlantic Group shot up 21.3% on news it agreed to be acquired by Lennar in a transaction valued at about $9.3bn. Lennar dropped 4.0%.
SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
