June 2 USA stocks fell on Thursday morning, weighed down by a fall in Apple as well as a drop in energy companies after OPEC failed to agree on output policy. Energy producers erased gains along with oil, while banks sank as Treasury yields dropped. The Standard & Poor’s 500 index shed seven points, or 0.4 percent, to 2,092.
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At 1559 BST, the Dow Jones Industrial Average fell 0.23%, the S&P 5600 rose 0.02% and the Nasdaq increased 0.24%. The Nasdaq composite climbed 12 points, or 0.3 percent, to 4,945. US markets were closed on Monday for the Memorial Day holiday.
“The market is getting used to the idea of potentially higher rates and the Fed hiking this summer”, said Aaron Jett, vice president of global equity research at Bel Air Investment Advisors in Los Angeles. You’re seeing a drift downwards on light volume.
Boeing (BA) had the greatest negative impact on the Dow, which fell as much as 149 points before closing about 86 points lower.
Eight of the 10 major S&P sectors were higher, with the energy index’s 0.36 percent rise leading the advancers. That sent the benchmark toward a six-month high and rejuvenated a rally that had lost momentum in late April after reaching the highest level since December 1.
METALS: Precious and industrial metals futures closed little changed. “Retailers are also more circumspect in their hiring”. The central bank caught investors off guard earlier this month when it signaled its next rate hike could be just weeks away. Analysts say oil ministers from the 13-nation oil cartel are unlikely to reach any agreement on production targets or production caps. Federal Reserve Chair Janet Yellen said Friday that an improving economy would probably warrant another rate increase in the coming months. Odds for a June boost are 22 percent, down from 30 percent on Friday.
Stocks close down ahead of potential rate-hike cues.
COME ON, VOGUE: Johnson & Johnson rose on news the company has agreed to buy privately-held hair care products maker Vogue International for about $3.3 billion. The less-volatile, four-week average fell by 1,750 to 276,750. Phone companies and utilities edged higher.
The index rose 1.53 percent for the month, with tech the top performer and energy the worst. Aetna gained $4.30, or 3.7 per cent, to $119.59. Exxon Mobil Corp. and Chevron Corp. slipped at least 1.2 percent. Australia’s S&P/ASX 200 lost 0.8 percent.
Half of the S&P 500’s 10 industry groups are on track to post gains in May. Johnson & Johnson shares rose 83 cents, or about 1 percent, to $113.61.
The CBOE Volatility Index (VIX) is up 0.03 point, or 0.2%, at 14.23.
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Cloud storage provider Box fell 9.1 percent to $11.64 after the company reported a slowdown in billings growth in the first quarter. The stock was the biggest drag on all three major indexes. Gold lost 5.8% this month.
