By Anora Mahmudova and Sara Sjolin, MarketWatch McDonald's skids
after disappointing November sales figures
NEW YORK (MarketWatch) -- The U.S. stock market moved lower on
Monday as sharp falls among energy companies, which closely tracked
oil's continued price slide, dragged the key benchmarks. Downbeat
economic reports form China, Japan and Europe also dented
sentiment.
Losses in the S&P 500 (SPX) were led by energy companies, as
the sector dropped nearly 3%. Materials and technology sector
stocks were also selling off, while defensive sectors such as
utilities, health care and telecoms were still in the positive
territory.
The Dow Jones Industrial Average (DJI) edged lower, with
McDonad's Corp.(MCD) taking a bite out of the blue-chip stock index
following disappointing sales. Oil gians ExxonMobil and Chevron
also weighed on the index.
The tech-heavy Nasdaq Composite (RIXF) reversed earlier gains,
with declines outpacing other benchmarks. The heaviest-weighted
component of the index, Apple Inc fell more than 2%.
The broader market moves are playing out amid the back drop of
crude oil's continued slide. Crude oil (CLF5) fell nearly 4% on
Monday. Energy companies were among the top ten decliners on the
S&P 500, sliding more than 5% on average.
Brian Fenske, head of sales trading at Investment Technology
Group, brokerage and technology firm, says a lack of clarity about
crude oil prices were dictating trading strategy.
"There is a lot of uncertainty when it comes to crude oil
prices, which made the whole energy sector difficult to invest in,
which is why we are seeing so much selling in those companies,"
Fenske said.
Also read: 5 global problems that cheaper oil may fuel
Concerns about the health of the global economy resurfaced on
Monday after disappointing Chinese trade numbers and data showing
Japan's economy contracted more than initially forecast in the
third quarter. Figures from Germany showed industrial production
expanded less than expected in October.
Also read: How strong dollar may hurt the global economy
The euro (EURUSD) traded around a 28-month low after Ewald
Nowotny, member of the European Central Bank's Governing Council,
said the currency union is the weak spot in the world economy.
European stock markets were also mostly lower.
Movers and shakers: Cubist Pharmaceuticals Inc.(CBST) soared
after drug giant Merck & Co. Inc. (MRK) agreed to buy the
smaller antibiotics maker for $8.4 billion. Merck shares were
unchanged.
Shares of Celgene Corp (CELG) jumped on news that the biotech
company extended its partnership with Agios to work on a cancer
drug.
(Read more in today's Movers & Shakers column:
http://www.marketwatch.com/story/vail-resorts-hr-block-earnings-in-focus-2014-12-07.)
Other markets: Asian markets got their first chance to react to
the solid U.S. jobs report issued Friday, sending indexes in Japan
and China higher. China's Shanghai Composite closed above 3,000 for
the first time since 2011.
In metals, gold traded mostly higher, while the dollar (DXY)
rose against most major currencies.
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