Monday, June 05, 2017 9:33 a.m. EDT
By Tanya Agrawal
(Reuters) – Wall Street edged lower in early afternoon trading on Monday as Apple weighed on all the three major indexes following a rating cut and ahead of its developer conference.
The iPhone maker’s stock was down 1 percent at $153.88 after brokerage Pacific Crest downgraded it to “sector weight” from “overweight”.
There is also a possibility that the company may take the unusual step of introducing a new product at the five-day conference, which kicks off on Monday.
Investors appeared to have shrugged off weekend attacks in London that came just days before Britain’s general national election on Thursday.
Opinion polls in the past week have put Prime Minister Theresa May’s Conservatives ahead, though with a narrowing lead over the Labour opposition.
Data on Monday showed services sector activity slowed in May as new orders tumbled, while orders for manufactured goods fell in April for the first time in five months.
Despite the disappointing data, market participants still expect the Federal Reserve to raise rates at its June 13-14 meeting, with traders expecting a 95.6-percent chance of a quarter-point hike, according to CME Group’s Fed Watch tool.
“We’re coming off a pretty strong rally and, in the absence of news to change that direction, we would anticipate that it would continue in that fashion,” said Bill Northey, chief investment officer at U.S. Bank Wealth Management in Helena, Montana.
“Plus, anytime you have an attack, such as the one in the UK, it causes some market disruption. This has been a resilient equity market and as we go through the course of this week, economic data and the Fed will drive the market.”
At 12:53 p.m. ET, the Dow Jones Industrial Average <.DJI> was down 3.34 points, or 0.02 percent, at 21,202.95 and the S&P 500 <.SPX> was down 1.75 points, or 0.07 percent, at 2,437.32.
The Nasdaq Composite <.IXIC> was down 8.34 points, or 0.13 percent, at 6,297.46, slightly easing from its record high of 6310.61.
Eight of the 11 major S&P 500 sectors were lower, with the health index’s <.SPXHC> 0.34 percent fall leading the decliners.
The financial sector’s <.SPSY> 0.54 percent rise led the gainers and Goldman Sachs’ 0.8 percent increase boosted the Dow.
Alphabet hit the $1,000 mark and was among the biggest boosts to the S&P and the Nasdaq.
Herbalife was down 7.3 percent at $68.54 after the nutritional supplement maker lowered its sales outlook for the current quarter.
Oil prices fell more than 1 percent on concerns that the cutting of ties with Qatar by top crude exporter Saudi Arabia and other Arab states could hamper a global deal to reduce oil production. [O/R]
Declining issues outnumbered advancers on the NYSE by 1,757 to 1,083. On the Nasdaq, 1,765 issues fell and 1,018 advanced.
The S&P 500 index showed 28 new 52-week highs and 11 new lows, while the Nasdaq recorded 82 new highs and 70 new lows.
(Reporting by Tanya Agrawal in Bengaluru; Editing by Anil D’Silva)