US stocks end lower ahead of earnings eason

Biotech and internet companies lag on Nasdaq

US stocks ended with moderate losses on Monday, 07 July 2014 as stocks gave up some of last week's gains that had sent the Dow Jones Industrial Average above 17,000 for the first time. Investors took a step back to reassess Thursday's stronger-than-expected jobs report while awaiting second-quarter earnings that start trickling in this week. Equities spent the duration of the trading day in negative territory with the opening weakness taking place amid cautious action in Europe.

The Dow Jones Industrial Average fell 44.05 points, or 0.3%, to 17,024.21. The Nasdaq Composite ended the day down 34.4 points, or 0.8%, to 4,451.53. The S&P 500 closed 7.8 points, or 0.4%, lower at 1,977.65.

Only three sectors such as utilities, telecoms and consumer staples, ended with modest gains. Nasdaq was dragged down by losses in biotech and Internet companies.

The new earnings season begins Tuesday with results from aluminum producer Alcoa after the bell. Another highlight is Wells Fargo on Friday.

Among stocks under focus, Apple rose 2.1% on big gains in June sales ahead of a busy fall season.

The dollar extended gains into a fourth consecutive day, with traders considering whether the U.S. jobs report for June adds more pressure on the Fed to raise interest rates sooner than later.

The focal point for U.S. traders this week is the FOMC meeting minutes that are due out Wednesday afternoon.

European stock markets were weaker on Monday, partly due to some weaker-than-expected German industrial production data that showed the sharpest monthly decline in two years. The reading was down 1.8% in May, year-on-year. Germany is the largest economy within the European Union.

U.S. economic data due for release on Monday was light and included the employment trends index.

Bullion metals ended moderately lower on Monday, 07 July 2014 at Comex. Gold prices marked their lowest close in more than a week on Monday, extending a hefty loss from the previous session, which saw investors opt for equities in a rally that pushed the Dow industrials past 17,000 for the first time ever.

Gold for August delivery fell $3.60, or 0.3%, to settle at $1,317 an ounce after losing more than $10, or 0.8%, on Thursday the last regular trading day of a holiday-shortened week. September silver also shed 12 cents, or 0.6%, to $21.01 an ounce.

Crude Oil futures settled lower on Monday, 07 July 2014 with the U.S. oil benchmark slipping below $104 a barrel to hold at their lowest level in a month as traders braced for further growth in global oil supplies.

Crude for August delivery fell 53 cents, or 0.5%, to settle at $103.53 a barrel on the New York Mercantile Exchange.

Libya on Sunday said it lifted force majeure on two oil ports rebels handed over last week, which would allow the return of significant exports that had been halted for nearly a year. Force majeure protects exporters from legal action in case of disruptions but also bars loads from the affected terminal. The terminals have a total daily loading capacity of around 560,000 barrels.

Participation was well below average with less than 600 million shares changing hands at the NYSE.

Tomorrow, the Job Openings and Labor Turnover Survey will be released at 10:00 ET, while the May Consumer Credit report will cross the wires at 15:00 ET (consensus $16.20 billion).

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