NEW YORK: Wall Street was little changed on Monday as a fall in oil prices hit materials stocks, offsetting a rise in healthcare shares.
Crude prices were slightly lower as hopes that top oil producers would reach an agreement to help tackle a stubborn global glut faded.
Investors have also been skittish following US Federal Reserve chair Janet Yellen’s comments last week urging caution on raising rates, which were in contrast with remarks made by some policymakers supporting more aggressive stance on rates.
While the Fed’s projections point to two rate hikes this year, traders expect only one, according to the CME Group’s FedWatch programme.
“I think people are still kind of nervous of the US economy, global economy and the election. That uncertainty is going to remain with us,” said Scott Brown, chief economist at Raymond James in St Petersburg, Florida.
Brown expects stocks to trade mostly sideways and within a tight range heading into the corporate earnings season, as investors remain wary of the uncertainty plaguing the markets.
At 9:41am ET the Dow Jones industrial average was down 22.39 points, or 0.13%, at 17,770.36, the S&P 500 was down 2.09 points, or 0.1%, at 2,070.69 and the Nasdaq Composite was down 4.38 points, or 0.09%, at 4,910.16.
Eight of the 10 major S&P sectors were lower, led by a 0.64% decline in the materials sector.
Healthcare stocks’ 0.46% rise helped limit losses. The sector was boosted by an increase in shares of Edwards Lifesciences.
Shares of the medical device maker rose nearly 16% to US$103.91 after a study showed a less-invasive heart-valve implant was superior to open surgery, prompting a slew of brokerages to raise their ratings on the stock.
Data on Monday is expected to show factory orders fell 1.7% in February, after rising 1.6% the previous month. The report is due at 10am ET (1400 GMT).
Virgin America surged 40.4% to US$54.63, after the company agreed to be bought by Alaska Air for about US$2.60bil (RM10.13bil) . Alaska Air shares were down 4.9% at US$77.98.
Tesla rose 4% to US$247 after the electric carmaker said orders for its new Model 3 sedan rose than 253,000 in the first 36 hours.
Declining issues outnumbered advancing ones on the NYSE by 1,678 to 977. On the Nasdaq, 1,242 issues fell and 1,074 rose.
The S&P 500 index showed 45 new 52-week highs and no new lows, while the Nasdaq recorded 31 new highs and seven new lows. - Reuters
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