Negative sentiment may also have been generated by a few disappointing economic news, including a report from the Commerce Department showing a continued decrease in durable goods orders in the month of September.
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Xerox fell 3.0 percent as it reported a loss of $34 million in the third quarter and announced it would undertake a review of the company’s business portfolio and capital allocation options.
Dow members ExxonMobil and Chevron lost 2.1 percent and 2.7 percent, respectively, while smaller producers ConocoPhillips and Marathon Oil lost more than 3.0 percent as another drop in crude prices weighed on the sector.
Given dovish moves by foreign central banks, a few investors believe that the Fed may be inclined to leave rates unchanged. “That’s going to be parsed every way possible”, said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama. China’s central bank last week cut interest rates for the sixth time in about a year and the European Central Bank hinted that it might provide more market stimulus later this year to offset a slowdown due to weakness in China and emerging markets.
Alibaba (BABA) shares surged 10% after a better-than-expected quarter.
Wall Street pros will also be closely watching the profit report from iPhone and iPad maker Apple after today’s closing bell. Twitter’s stock ended the regular session up 1.5 percent at $31.34.
The Dow and the S&P 500 edged lower on Monday as energy shares dropped with oil prices and Apple retreated a day before its quarterly results.
Last week, stocks rallied for a third straight period, as the S&P 500 bounced back to positive territory for the year.
The Nasdaq is down 1.72 points, or less than 0.1 per cent.
Pharma giants gained after reporting earnings above analyst expectations: Merck added 1.3 percent, Pfizer 3.4 percent, and Bristol-Myers Squibb 3.1 percent.
Apple’s shares were down 2.8% at US$115.73, making it the biggest drag on the three major indexes.
Walgreens Boots Alliance is near a deal to acquire Rite Aid in a transaction that would further expand the company’s role in the distribution of medications in the U.S., according to a person familiar with the matter. The cable company earned 80 cents a share over the quarter, while revenue jumped 11% to $18.67 billion.
NYSE declining issues outnumbered advancing ones 2,293 to 797, for a 2.88-to-1 ratio; on the Nasdaq, 2,003 issues fell and 820 advanced, for a 2.44-to-1 ratio favoring decliners.
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The S&P 500 index showed 22 new 52-week highs and six new lows, while the Nasdaq recorded 54 new highs and 19 new lows.
