US stocks drop for second straight day

Consumer discretionary and Industrials sectors lead the losses

U.S. stocks fell for a second session on Tuesday, 07 June 2017 as market sentiment turned jittery ahead of a U.K. general election and uncertainties associated with former Federal Bureau of Investigation boss James Comey's testimony to the Senate later this week.

The Dow Jones Industrial Average declined 47.81 points, or 0.2%, to end at 21,136.23. The Nasdaq Composite Index slid 20.63 points, or 0.3%, to close at 6,275.06. The S&P 500 dropped 6.77 points, or 0.3%, to close at 2,429.33, with consumer discretionary and industrials leading the losses. Wal-Mart and Boeing were the top Dow decliners.

Investors were in a cautious mood as they wait for former FBI director Jim Comey's Senate appearance, the outcome of the U.K. general election, and a policy meeting of the European Central Bank, all on Thursday.

The cautious stance in turn bolstered demand for assets perceived as havens such as U.S. Treasurys, gold and the Japanese yen. Haven appetite was also fueled in part on concerns about a diplomatic row between Qatar and other Middle Eastern nations.

However, despite investors' caution, the equity market kept its loss to a minimum throughout most of Tuesday's session. The technology sector played a huge role in keeping the broader market afloat for most of the day.

Weakness in the U.S. dollar, with the ICE U.S. Dollar Index edging down by 0.3%, and some losses among U.S. equities, helped to lift investment demand for gold.

But this week also has brought a rift between Qatar and other Mideast nations, helping to further boost gold's appeal as a hedge against uncertainty.

Gold for August delivery rose $14.80, or 1.2%, to settle at $1,297.50 an ounce. Prices extended their streak of gains into a third-consecutive session and finished at the highest for a most-active contract since 4 Nov 2016. July silver rose 12.9 cents, or 0.7%, to $17.71 an ounce.

Oil staged a rebound to settle higher on Tuesday, 06 June 2017 as traders bet that U.S. government data will show a ninth consecutive weekly decline in crude supplies, and concerns surrounding Qatar's diplomatic crisis eased.

On the New York Mercantile Exchange, July West Texas Intermediate crude added 79 cents, or 1.7%, to settle at $48.19 a barrel after tapping lows under $47. August Brent crude on London's ICE Futures exchange rose 65 cents, or 1.3%, to $50.12 a barrel.

In a monthly report issued on Tuesday, the EIA raised its production outlook for this year and next. For 2018, it sees average output of 10.01 million barrels a day, up 0.4% from its previous forecast, and for 2017, it forecast 9.33 million barrels a day, up 0.3% from last month's forecast. The government agency also cut its WTI and Brent oil-price forecasts for next year.

Among economic report expected for the day, the number of job openings in the U.S. rose in April to a record high, but the pace of hiring slipped to a one-year low in another sign the economy is running out of people with enough skills to fill empty positions.

Shares in Apple rose 0.3% after dropping 1% on Monday. That fall came after Apple unveiled its HomePod smart speaker and other new offerings.

Tomorrow, investors will receive the weekly MBA Mortgage Applications Index and April Consumer Credit (consensus $15.0 billion). The two reports will cross the wires at 7:00 ET and 15:00 ET, respectively.

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