The major equity indexes closed out the trading on Monday in negative territory, weighed down by a decline technology and industrial shares. General Electric ended the day down 6.3 percent, suffering its largest one-day percentage decline in more than six years after a host of brokerages cut their price targets on the stock, citing higher chances of a dividend cut at the industrial conglomerate.
After holding near the unchanged mark for most of the session, losses accelerated late in the session on downturn in the technology sector index, off 0.40 percent at the close.
Last week, the Dow and S&P managed to close at a record high all five days, after a strong start to third-quarter earnings and on hopes President Donald Trump’s tax plans move forward after the Senate’s approval of a budget resolution on Friday.
Investors are also waiting for news on the next Federal Reserve chief. Trump told reporters on Monday he is “very, very close” to making his decision on who should chair the Fed.
Of the 97 S&P 500 companies that have reported earnings so far, 73.2 percent have topped expectations, according to Thomson Reuters data, versus the 72-percent average for the past four quarters.
The industrial sector index was off 0.8 percent making it one of the largest drags to the S&P of the 11 major sectors. Aside from GE, the group was also pulled lower by a 10.4-percent decline in Arconic after the specialty metals maker missed its earnings estimates and announced a new chief executive.
The energy index stumbled 0.59 percent, driven by losses in Schlumberger Baker Hughes and Halliburton, which reported results on Monday.
Hasbro fell 8.6 percent after the toymaker’s forecast for the holiday season fell below estimates, primarily the result of Toys ‘R’ Us bankruptcy, which has begun to negatively affect Hasbro’s operations. Shares of peer Mattel fell 3.2 percent.
Approximately 5.84 billion shares changed hands on the major domestic equity exchanges, as compared to the 5.83 billion share daily average over the past 20 trading sessions.
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