U.S. market indexes were mostly lower to start the week on Monday.
For the day, the Dow Jones Industrial Average was lower at 18,404.51 for a loss of 27.73 points or 0.15%. The Standard & Poor's 500 closed at 2,170.84 for a loss of 2.76 points or 0.13%. The Nasdaq Composite was higher at 5,184.20 for a gain of 22.06 points or 0.43%. The VIX Volatility Index was higher at 12.41 for a gain of 0.54 points or 4.55%.
In the Dow Jones Industrial Average, the following stocks led losses for the day:
- ExxonMobil (XOM, Financial) -3.47%.
- Chevron (CVX, Financial) -3.29%.
- Verizon (VZ, Financial) -1.64%.
- Caterpillar (CAT, Financial) -0.98%.
- United Technologies (UTX, Financial) -0.66%.
The economic calendar on Monday was focused on manufacturing. Reports were released on the PMI Manufacturing Index, ISM Manufacturing Index and construction spending. The PMI Manufacturing Index was higher for the month at 52.9 which was an increase from 51.3 in the previous month. The ISM Manufacturing Index was also higher at 52.6. At 52.6 the ISM Manufacturing Index significantly beat consensus of 53.2. Construction spending was up 0.3% from a year ago. For the month, construction spending was down 0.6% which was improved from the previous month’s -0.8%.
In the broad market, sectors leading losses included energy, materials and financial. Technology stocks continued to gain on Monday. For the day, the Nasdaq Composite Index was higher at 5,184.20. The Nasdaq 100 was also higher at 4,756.04 for a gain of 25.81 points or 0.55%. In technology, the following stocks led gains:
- Alexion Pharmaceuticals Inc. (ALXN, Financial) 3.81%.
- Apple Inc. (AAPL, Financial) 1.77%.
- Amazon (AMZN, Financial) 1.16%.
A number of factors have started to slow market momentum in U.S. stocks. This week will provide greater insight into the market’s direction. The weak first estimate of GDP for the second quarter has slowed stock market gains. On Friday of this week, the Bureau of Labor Statistics will release the July jobs report which will be a main factor for the market and the Federal Reserve. On Monday, oil prices also continued to fall. WTI crude oil reached a low of $40.10. Lower oil prices were also a factor slowing market momentum in equity trading.
In a CNBC report on Monday, market specialists provided their insight on the market’s direction for the remainder of the year.
Disclosure: I do not own any stocks included in this article.
Start a free seven-day trial of Premium Membership to GuruFocus.
