By Anora Mahmudova and Karen Friar, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks drifted lower on Monday
ahead of this week's Federal Reserve policy meeting, as some
investors expect the central bank to adopt a more hawkish tone in
its statement.
Investors are viewing the Scottish referendum scheduled for
Thursday as a risk event, since a "yes" vote would have
far-reaching implications on other counties in Europe.
The S&P 500 (SPX) fell 2 points, or 0.1%, to 1,983.36. The
Dow Jones Industrial Average (DJI) was flat at 16,977.75. The
Nasdaq Composite (RIXF) fell 32 points, or 0.7%, to 4,559.62.
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: 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.
Separately, 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.
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 US antitrust authorities would likely require the
combined entity to sell SAB.LN's stake in the MillerCoors US JV.
Molson Coors jumped 7%. AB InBev was up 3.4%.
RadioShack Corp. (RSH) shares soared 15% 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.
Apple Inc (AAPL) inched 0.5% higher after the tech company said
Friday preorders for its new iPhones hit a record, though it didn't
provide details.
Netflix (NFLX) share fell 2.3% even as the company is launching
in three new markets in Europe on Monday. (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 were mixed, with the Chinese data in sight. Gold
prices (GCZ4) were moving up, while oil futures (CLV4) were losing
ground.
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