Wall Street pares early losses, closes modestly higher
- Wall Street starts the week on a negative note.
- Energy and tech help indexes recover losses.
- Healthcare and financials drop.
Major equity indexes in the United States struggled to extend last weeks gains on Monday as investors took some of their profits off the table ahead of the earnings season. Amid a lack of fresh fundamental drivers and macroeconomic data releases, the trading action remained relatively subdued.
Commenting on Monday's choppy session, "investors were focused on making marginal moves within their portfolios on a slow news day after the rally and before earnings season. The news lies ahead in terms of economic reports, earnings and earnings warnings. In the meantime, you’ll take advantage of some of the price action,” Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis, told Reuters.
Wells Fargo and Citigroup shares dropped nearly 1% on Monday, weighing on the S&P 500 Financials Sector (SPSY), which closed the day 0.12% lower. Meanwhile, the S&P 500 Health Care Sector (SPXHC) lost as much as 0.5% on the day before closing 0.38% lower, becoming the biggest loser sector of the day.
On the other hand, with the barrel of West Texas Intermediate edging higher toward the $62 mark, the S&P 500 Energy Sector (SPNY) rose to a fresh yearly high and finished the day 0.58% higher. Furthermore, led by chipmakers' strong performance, the S&P 500 Information Technology Sector (SPLRCT) gained 0.37%, helping the Nasdaq Composite turn positive on the day.
At the end of the day, the financial-heavy Dow Jones Industrial Average was down17.63 points, or 0.07%, at 25,278.24, the S&P 500 was up 4.03 points, or 0.15%, at 2,747.18 and the Nasdaq Composite was gaining 19.78 points, or 0.28%, at 7,156.34.