Healthcare drags on Wall Street

Bruce Monrad, chairman and trustee at Northeast Investors Trust in Boston, said Monday was very quiet.

“People are digesting the Fed and looking forward to possible outcomes of the G20 and how that could in turn affect the Fed going forward,” he said.

A Fed rate cut in July “may be locked and loaded but could be somewhat contingent on what happens at the G20”, Monrad added.

The Dow Jones Industrial Average rose 8.41 points, or 0.03 per cent, to 26,727.54 on Monday, the S&P 500 lost 5.11 points, or 0.17 per cent, to 2945.35 and the Nasdaq Composite dropped 26.01 points, or 0.32 per cent, to 8005.70.

Six of the 11 major sectors in the S&P 500 lost ground, with the biggest percentage drop for energy stocks as crude prices fell.

In the latest trade-related squabble, FedEx apologised for mistakenly returning a Huawei phone to its sender, after misrouting packages from the Chinese tech firm last month.

The move provoked the ire of Chinese authorities and raised the prospect of FedEx being added to China’s “unreliable entities” list. The package delivery firm’s shares slid by 2.7 per cent.

Caesars Entertainment jumped 14.5 per cent on news that rival Eldorado Resorts had agreed to buy the casino operator for $US8.5 billion ($12.2 billion). Eldorado dropped 10.6 per cent.

United Technologies advanced 1.1 per cent after Cowen & Co upgraded it to “outperform” from “market perform”.

Celgene slipped 5.5 per cent after Bristol-Myers Squibb announced that its planned $US74 billion deal to buy the drugmaker was expected to close at the end of 2019 or beginning of 2020, later than expected. Bristol-Myers fell 7.4 per cent.

Declining issues outnumbered advancing ones on the NYSE by a 1.44-to-1 ratio; on the Nasdaq, a 2.27-to-1 ratio favoured decliners.

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