Featured # Markets | 2 years ago

Wall Street Dragged Lower by Financial, Health Stocks

United States stocks began the fourth quarter on a feeble note as healthcare stocks dropped. The bank’s despairs have concerned investors who are waiting third-quarter corporate earnings and the upcoming U.S. presidential election.

“It’s a market that is burning off a little bit of the frost from overbought conditions of last week, and nervousness is likely to increase as we get closer to the jobs report on Friday,” stated Quincy Krosby, market strategist at Prudential Financial.

U.S. stocks reported their best quarter of the year after closing higher on Friday. The dollar index .DXY gained 0.3 percent after a report displayed U.S. factories boosted up activity in September, shaking off a pullback in the previous month. Though, market reaction to the data was quiet as investors await a important report on month hiring activity on Friday which will play a big part in the Federal Reserve’s decision to hike interest rates this year.

Ten of the 11 major S&P 500 indexes declined, with utilities. SPLRCU dropping the most by 1.39 percent. Monday morning, the Dow Jones Industrial Average dropped 52.42 points, or 0.29 percent, at 18,255.73. The S&P 500 declined 6.03 points, or 0.28 percent, at 2,162.24 and the Nasdaq Composite fell 8.07 points, or 0.15 percent, at 5,303.94.

The S&P 500 healthcare sector .SPXHC fell 0.5 percent and was the largest drop on the benchmark index, followed by financials .SPSY, which declined 0.23 percent.

“Until Deutsche Bank’s issues are resolved, investors’ fear of a contagion will manifest in financials,” Krosby added.

Declining issues outnumbered advancing ones on the NYSE by 1,633 to 1,177. On the Nasdaq, 1,504 issues dropped and 1,103 gained. The S&P 500 index reported nine new 52-week highs and five new lows, while the Nasdaq recorded 44 new highs and 22 new lows.

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