By Anora Mahmudova and Karen Friar, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks closed mostly lower on
Monday with losses led by technology and small-cap stocks as
investors continued to unload riskier position ahead of this week's
pivotal Federal Reserve policy meeting.
The speculation that the central bank may adopt a more hawkish
tone in its statement after the two-day meeting on Wednesday had
been weighing on stock prices since the beginning of the month.
The Scottish referendum scheduled for Thursday is adding to
general nervousness among global equity investors as a "yes" vote
would have far-reaching implications on other counties in
Europe.
The S&P 500 (SPX) ended 1.4 point lower at 1,984.13. The
Nasdaq Composite (RIXF) fell 48.70 points, or 1%, to 4,518.90, as
investors sold biotechs and internet stocks in droves. The Global X
Social Media Index ETF (SOCL) dropped 3.9%, while iShares Nasdaq
Biotechnology ETF (IBB) fell 1.3%. The Russell 2000 (RUT) lost 13
points, or 1.1%, to preliminary 1,147.57.
The Dow Jones Industrial Average (DJI) defied the general trend
and finished up 43.63 points, or 0.3%, at 17,031.14.
Steven Wieting, global chief investment strategist at Citi
Private Bank, said markets are likely to drift sideways until the
Fed meeting.
"There is a lot of speculation on whether the Fed will update
the timing of interest-rate increases. Also, the uncertainty
surrounding the Scottish vote, which has already hit UK stocks and
sterling, is weighing on sentiment as a 'yes' vote will threaten
political unity in Europe," Wieting said.
Data: Monday's economic releases were contradicting. The Empire
State manufacturing survey improved to a near five-year high,
though the details were not as strong as the headline index, the
New York Fed said Monday.
However, industrial production declined unexpectedly in August
to mark the first drop since January, and a series of revisions
left output in July lower than previously estimated, according to
data released Monday.
Separately, weak Chinese factory data over the weekend put
pressure on commodities and global equities. Official figures from
China on Saturday showed the country's industrial output growth
slipped in August to its lowest level since the 2008 global
financial crisis, dealing a blow to companies and economies
dependent on China.
Stocks to watch: European and U.S. brewers were in focus after
news reports of potential financing of deals between AB InBev
(AHBIY) and SABMiller. Molson Coors (TAP.NV.T) would benefit from
such a deal as U.S. antitrust authorities would likely require the
combined entity to sell SAB's stake in the MillerCoors US JV.
Molson Coors jumped 5.9%. AB InBev rose 3.1%.
RadioShack Corp. (RSH) shares soared 16% to $1.06 after the
consumer electronics retailer said that its chief financial
officer, John Feray, has resigned. Holly Etlin, an adviser to the
company, is taking over in the interim.
Netflix (NFLX) shares fell 4% as the company launched in three
new markets in Europe on Monday. According to the Telegraph, it is
receiving a cold reception in France. (Read more about the day's
notable movers here:
http://www.marketwatch.com/story/apple-yahoo-yum-in-focus-2014-09-14.)
Other markets: In Asia, stocks listed in Hong Kong fell to mark
a seventh session of losses, under pressure from the weak Chinese
data. The dollar (USDJPY) climbed against the yen to Yen107.24.
European stocks closed mixed, with the Chinese data in sight.
Gold prices (GCZ4) settled higher, while oil futures (CLV4) were
largely unchanged.
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