The major U.S. stock indexes veered slightly lower in morning trading Monday, pulled down largely by energy companies as oil prices fell. Consumer-focused stocks also weighed on the market, while utilities and telecom companies bucked the downward trend. Investors had their eye on the latest batch of company earnings and deal news.
KEEPING SCORE: The Dow Jones industrial average was down 29 points, or 0.2 percent, to 18,108 as of 11:40 a.m. Eastern time. The Standard & Poor’s 500 index slid 2 points, or 0.1 percent, to 2,130. The Nasdaq composite index fell 4 points, or 0.1 percent, to 5,210.
THE QUOTE: “It’s going to be a lot about earnings this week, so that’s kind of where people’s heads are,” said Erik Davidson, chief investment officer at Wells Fargo Private Bank.
EARNINGS WATCH: About 80 of the companies in the S&P 500 are due to report their quarterly report cards this week, including Netflix after the close of trading Monday. As has become the pattern in recent quarters, financial analysts have forecast earnings to be down overall from a year ago, largely due to the downbeat energy sector.
ENERGY SLUMP: Several energy companies were trading lower. Devon Energy was the biggest decliner in the S&P 500, sliding $1.62, or 3.8 percent, to $41.46. Chesapeake Energy fell 23 cents, or 3.5 percent, to $6.33. Southwestern Energy shed 46 cents, or 3.6 percent, to $12.44. Energy remains the best-performing sector in the S&P 500 this year, up 14 percent.
BETTER QUARTER: Bank of America said its third-quarter profits rose nearly 6 percent from a year earlier, helped by strong results in investment banking and trading. The stock was down 7 cents at $15.93.
TOY STORY: Hasbro surged 7 percent after the toy maker delivered better-than-expected revenue in its latest quarter. The stock climbed $5.33 to $81.49. Traders also sent shares in rival Mattel higher. The company, whose products include Barbie dolls, rose 5 cents to $30.16.
DEAL BUMP: SuperValu climbed 5.2 percent after the grocery store and logistics company agreed to sell its Save-A-Lot unit to Canadian private equity firm Onex Corp. for $1.37 billion. The stock added 26 cents to $5.27.
OVERSEAS MARKETS: The major stock indexes in Europe were down as a broad rise in government bond yields suggested investors are expecting less central bank stimulus and higher interest rates than before. Germany’s DAX was down 0.7 percent, while France’s CAC 40 fell 0.5 percent. Britain’s FTSE 100 fell 1 percent. Earlier in Asia, Japan’s benchmark Nikkei 225 wobbled but finished 0.3 percent higher. South Korea’s Kospi rose 0.2 percent, while Australia’s S&P/ASX 200 dipped 0.8 percent. Hong Kong’s Hang Seng fell 0.8 percent. The SET of Thailand dropped 0.2 percent. Other markets in Southeast Asia were mostly lower.
ENERGY: U.S. benchmark crude oil was down 70 cents, or 1.4 percent, to $49.65 a barrel in New York. It lost 9 cents on Friday. Brent crude, the international standard, was down 63 cents, or 1.2 percent, to $51.32 a barrel in London.
BONDS AND CURRENCIES: Bond prices rose. The yield on the 10-year Treasury note fell to 1.77 percent from 1.80 late Friday. In currency markets, the dollar weakened to 103.96 yen from 104.18 on Friday, while the euro strengthened to $1.0995 from $1.0983.
