US stocks close lower Monday, ending a 6-day winning streak
The US stock market closed lower Monday, as uncertainty at the beginning of a busy earnings week created some investor caution. All three of the major indices ended in the red.
The tech heavy Nasdaq composite fell 0.6% to close at 6,586.83. Shares in Google owner Alphabet and Facebook fell around 2%, while Amazon‘s share price declined 1.7%.
The Dow Jones Industrial Average (DJIA), meanwhile, was down 0.2% at 23,273.96. The S&P 500 index, meanwhile, also ended the day in negative territory, declining 0.4% to hit 2,564.98.
It was the first time all three indices had declined in the same session for six straight sessions.
Hasbro was among the biggest losers in the Monday US trading session. Its share price lost 8.6% as it announced the bankruptcy of one of its biggest customers, Toys ‘R’ Us, will likely weigh on holiday sales.
General Electric shares also fell sharply. Fears of a dividend cut exacerbated concerns following Friday’s lower than expected earnings report. That saw investors sell the stock, resulting in a 6.3% drop in its share price – the biggest single-day decline since 2011.
Other fallers included a 2.3% decline in Tesla shares, following news the electric car maker plans to open a factory in China. Haliburton lost 2.5%, despite earnings coming in above forecast. And, shares in toy-maker Mattel declined 3.2%.
Other contributory details
Other details weighing on US investors’ minds, were more details and developments on US President Donal Trump’s tax reforms and expectations over future earnings reports as the week goes on.
After passing a major hurdle last week, Trump’s tax reform now must go through a number of processes, before they can pass into being.
Right now, the tax reform bills that have been passed by the Senate and the House are slightly different. Three separate teams are working together to reconcile that. There’s hope this will happen quickly, but concerns it might not. That uncertainty has introduced a little caution Monday.
Meanwhile, around 200 of the S&P constituents will release their third quarter earnings reports this week. That’s a lot of data to digest and is adding to the more cautious tone.
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