The financial sector was the biggest decliner
U.S. stocks closed lower on Monday, 28 November 2016 as investors found few reasons to keep pushing shares higher following an extended rally that took major indexes to a string of records and lifted major indexes for three straight weeks. Participants favored a cautious approach at the start of the week as volatility from the oil pit and concerns out of Europe kept risk appetite in check. This also encouraged some profit-taking activity as investors assessed whether the broader market has risen too far, too fast.
The Dow Jones Industrial Average fell 54.24 points, or 0.3%, to close at 19,097.90, with shares of Visa and American Express leading decliners. The Nasdaq Composite Index shed 30.11 points, or 0.6%, to close at 5,368.81. The S&P 500 dropped 11.63 points, or 0.5%, to finish at 2,201.72.
Utilities and telecom, which are viewed as defensive groups, were among the biggest outperformers of the day. The financial sector was the biggest decliner. The Dow and S&P both snapped four-day win streaks.
The benchmark index finished near its session low with seven sectors ending in negative territory. The financial, energy and health care spaces outpaced today's losses in the broader market while rate-sensitive utilities, telecom services and real estate gained amid declining market rates.
Wall Street has rallied throughout November, with the gains particularly strong since Donald Trump's unexpected presidential election victory. Investors expect that the president-elect will advocate for policiessuch as infrastructure spending, massive corporate tax cuts and environmental and financial deregulationthat could spur economic growth.
Crude futures jumped 2.2% to settle at $47.08 a barrel on Monday, following a 4% slide on Friday that came after Saudi Arabia refused to attend a Monday meeting with Russia about a possible output cut.
Gold futures for February settled up 1.1% at $1,193.80 as a key dollar index declined 0.2%.
Developments in Italy were also in focus as investors eyed a downturn in the country's banking names. Banca Monte dei Paschi di Siena tumbled 13.8% after the bank initiated a debt-for-equity swap and stated that it could face up to EUR8 billion in fines. The name also saw pressure ahead of the country's constitutional referendum. Italian citizens will vote on December 4 on whether the powers of the Senate should be reduced. Prime Minister Matteo Renzi stated that if the referendum should fail, he will resign.
Treasuries ended on a higher note as longer-dated issues outperformed. The yield on the 2-yr note finished down two basis points while the yield on the benchmark 10-yr note fell five basis points to 2.31%.
Today's trading volume was below the recent average of 1.0 billion as fewer than 847 million shares changed hands at the NYSE floor.
There was no economic data of note released on Monday.
Tuesday's economic data will include the second estimate of Q3 GDP (consensus 3.0%) and the Q3 GDP Deflator (consensus 1.5%), which will each cross the wires at 8:30 ET. Separately, the Case-Shiller 20-city Index for September (consensus 5.2%) and November Consumer Confidence (consensus 100.0) will be released at 9:00 ET and 10:00 ET, respectively.
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