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 Investors had little company-specific news to digest and trading was
light ahead of the Thanksgiving holiday later this week. Still, the
market was hit with broader geopolitical news. The U.S. and other
world powers reached a deal Sunday to limit Iran's nuclear program,
an event that dragged down oil prices and energy stocks.
The slow day represented a lull in the market's strong run-up.
Stocks have soared this year as a combination of solid corporate
earnings, a strengthening economy and easy-money policies from the
Federal Reserve have drawn investors to stocks. Stocks have also
gained because they offer an attractive alternative to bonds, where
interest rates remain close to all-time lows.
The Dow Jones industrial average rose eight points, or 0.1 percent,
to 16,072.54. The Standard & Poor's 500 index fell 2 points, or 0.1
percent, to 1,802.48. On Friday, the index closed above 1,800 for
the first time
Despite light trade, Monday did feature another market milestone.
The Nasdaq rose as high as 4,007.09, a level it hasn't seen since
Sept. 7, 2000, during the dot-com bubble. The index ended up 2.92
points, or 0.1 percent, at 3,994.57.
The biggest drags on the S&P 500 were energy stocks. Sunday's deal
with Iran was the first significant progress in years to curtail
that country's nuclear ambitions. It could reduce the risk of
conflict, improve trade and boost global oil supplies by making it
easier for Iran to sell its crude onto the global market. That could
increase global supply and push oil prices lower in the long-term.
Oil fell 75 cents, or 0.8 percent, to $94.09. Energy companies
Halliburton, Transocean and Schlumberger all fell 2 percent or more.
Even with Monday's decline, S&P 500 has risen seven straight weeks
and is up 26 percent in 2013, its best performance in 15 years.
However, an increasing number of investors believe that stocks have
run their course for 2013 and stocks are due for a pullback soon.
"I would like to see this market take a breather," said Jim Lauder,
a fund manager for Wells Fargo Advantage Dow Jones Target Date
Funds.
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While the Nasdaq is flirting with territory it hasn't seen in 13
years, the index is still down roughly 25 percent from its all-time
high of 5,048.62 that it set on March 10, 2000. The index, although
still technology heavy, is dominated by highly-profitable companies
like Apple, Google and Amazon.
Trading was light Monday and is expected to remain limited all week.
Stock and bond markets are closed Thursday in observance of the
Thanksgiving. On Friday, the New York Stock Exchange and Nasdaq will
close early. Approximately 2.98 billion shares traded hands Monday
on the New York Stock Exchange, below the 3.35 billion that is
typically traded on an average day.
Investors will focus on Black Friday, when the holiday shopping
season officially starts. Due to the lateness of Thanksgiving, the
Christmas shopping season is a week shorter than usual, and that
could affect the amount of shopping people can do. An increasing
number of retailers are opening up on Thanksgiving to draw in
customers.
In other news, shares of Wal-Mart rose 62 cents, or 0.8 percent, to
$80.43 after the company announced its CEO was stepping down. Alcoa
climbed 35 cents, or 4 percent, to $9.59 after Goldman Sachs
upgraded the company to "buy" from "neutral," citing potential
growth in its aluminum products business.
[Associated
Press; KEN SWEET, AP Markets Writer]
Copyright 2013 The Associated
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