By Barbara Kollmeyer and Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks began the week on a sour
note as headlines from Gaza and Russia were weighing on
markets.
The death toll inside Gaza mounted over the weekend as Israel
stepped up its ground war, while European policy makers debated
tougher sanctions against Russia in the wake of the downing of a
Malaysia Airlines passenger jet.
The S&P 500 (SPX) opened 6 points, or 0.3%, lower at
1,972.53, with all 10 sectors in the red. The Dow Jones Industrial
Average (DJI) dropped 63 points, or 0.4%, to 17,037.85 at the open.
The Nasdaq Composite (RIXF) began the day down 9 points, or 0.2% at
4,422.92.
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action.
On Monday, European stocks fell, while gold and Treasurys
rose.
There are no economic events for Monday and a scant amount of
earnings, leaving investors to face down a weekend of rising global
tensions. On Sunday, Secretary of State John Kerry was caught on an
open microphone, ahead of interviews with Sunday talk shows,
criticizing Israeli's Gaza operation after the deadliest day of
fighting for both sides since the conflict began.
European threats of tougher sanctions against Russia weighed on
stocks in the region. In an interview on NBC's "Meet the Press",
Kerry said a "buildup of extraordinary circumstantial evidence" is
pointing to Russia as the source of the missile that shot down
Malaysia Airlines Flight 17 over Ukraine, killing 298 people.
International anger is growing over the inability of experts to
reach the crash site, as bodies languish in railcars without any
clear plan as to destination. Kerry described what was happening as
"grotesque," referring to reports of "drunken separatist soldiers,
unceremoniously piling bodies onto trucks", and removing bodies and
evidence from the site.
European leaders threatened consequences against Russia if the
Kremlin did not allow investigators free and unhindered access to
the crash site.The EU could start freezing assets of companies and
business leaders close to Russian President Vladimir Putin as soon
as Tuesday, under sanctions announced last week, The Wall Street
Journal reported.
Also read: Why markets shrug off Malaysia Airlines plane crash,
Gaza and other geopolitifal flashpoints
European stocks fell. Russia's blue-chip MICEX index dropped
2.4%, moving below 1,400. Should that hold, it would close below
that level for the first time since mid-May, according to FactSet.
Asian markets closed mixed.
Among commodities, gold (GCQ4) moved higher, while oil (CLQ4)
was also marginally up. Small caps' slump, Ukraine fears may hold
up market
Earnings reports
Hasbro Inc.(HAS) fell 4.8% after the toymaker posted an 8% rise
in revenue, but missed revenue estimates. Halliburton Co.(HAL) rose
1.5% after the oil services company's revenue beat forecasts and as
earnings met expectations.
Shares of EMC Corp.(EMC) jumped 4.5% on reports Elliot
Management Corp. has taken a stake of more than $1 billion in the
data-storage giant and plans to push it toward a breakup.
Results from Netflix Inc. (NFLX)(NFLX),Texas Instruments Inc.
(TXN) and Chipotle Mexican Grill Inc. will come after the close of
regular trading. Netflix, Chipotle, TI are Monday's stocks to
watch.
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