Steep losses for energy stocks keep lid on main indices
U.S. stocks finished Monday's range-bound session marginally higher on 19 October 2015 as steep losses for energy stocks, following a drop in oil prices, kept a lid on the main indexes. Stocks had switched between small gains and losses in earlier activity, but returned to positive territory by late afternoon.
The S&P 500 closed less than a point higher at 2,033.67. The Dow Jones Industrial Average added 14.57 or less than 0.1%, to 17,230.54. The Nasdaq Composite ended the day up 18.78 points, or 0.4%, at 4,905.47.
Similar to energy, the materials sector ended well behind the broader market while the remaining sectors fared better. The top-weighted technology sector eked out a modest gain while another influential groupfinancials ended just below its flat line.
Morgan Stanley was one of the biggest decliners among S&P 500 stocks, skidding 4.8% after the New York-based bank's third-quarter earnings and revenue badly missed analysts' estimates.
In some ways, the range-bound action was a bit of a surprise considering investors received China's Q3 GDP report over the weekend. The growth report proved to be a mixed bag as GDP beat estimates (+6.9%; consensus 6.8%), but dipped below the official target growth rate of 7.0% year-over-year.
China's Shanghai stock index finished slightly lower on the day on Monday, while the rest of Asia's stock markets were mixed.
Economic data at Wall Street was limited to the NAHB Housing Market Index for October, which rose to 64 from a downwardly revised 61 (from 62) while the consensus expected the reading to come in at 62. Tomorrow's economic data will be limited to September Housing Starts (consensus 1.15 million) and Building Permits (consensus 1.17 million) with both data points set to cross at 8:30 ET.
Bullion prices ended lower on Monday, 19 October 2015 with traders attributing the largest one-day loss in more than two weeks to speculators locking in profits scored during a run-up that had lifted prices to a four-month high. The key outside markets were also in a bearish posture for the precious metals on this day. The U.S. dollar index was higher as the greenback made a rebound from recent selling pressure.
Gold for December delivery fell $10.30, or 0.8%, to settle at $1,172.80 an ounce on Comex. That was the largest one-day dollar and percentage decline since Sept. 30. Prices had seen a gain of 2.4% last week. December silver also fell 27.3 cents, or 1.7%, to $15.841 an ounce but held on to a year-to-date gain.
Oil futures settled at the lowest level in more than two weeks on Monday as data showing China's economic growth fell to its slowest pace since the financial crisis raised concerns about the outlook for energy demand. Losses for oil also came on the heels of a nearly 6% drop in futures prices for gasoline, as oil-refinery maintenance draws to a close and the market faces seasonal demand weakness.
November West Texas Intermediate crude fell $1.37, or 2.9%, to settle at $45.89 a barrel on the New York Mercantile Exchange, ahead of the contract's expiration on Tuesday. Prices saw a loss of 4.8% last week and settled Monday at their lowest level since 2 October 2015.
Still, a meeting between members of the Organization of the Petroleum Exporting Countries and non-OPEC nations in Vienna on Wednesday could fuel worries that supply will continue to outpace demand. Iran's oil minister said Monday he expects the country to boost production by 500,000 barrels a day in the coming months, and that it has committed buyers.
Similar to stocks, Treasuries maintained narrow ranges throughout the day with the 10-yr yield ending flat at 2.03%.
Today's participation was a bit below average as just over 800 million shares changed hands at the NYSE floor.
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