NEW YORK: U.S. stocks ended Monday’s choppy session with modest losses as Wall Street assumed a skittish stance, in the wake of disappointing trade data from China and Greek debt drama.
Higher oil prices initially provided a lift to energy stocks, but those gains soon fizzled out, while a jump in CBOE volatility index to 18.70 indicated nervousness among investors.
The S&P 500 SPX, -0.42% closed down 8.73. Points, or 0.4%, to 2,046.74, with nine of its main 10 sectors ending with losses. Health care and utility stocks were the top decliners, while energy eked out a small gain.
Financials were lower amid reports that the strong dollar could hurt bank balance sheets due to a planned surcharge by U.S. regulators.
The Dow Jones Industrial Average DJIA, -0.53% tumbled by triple digits at session lows, but finished with a loss of 95.08 points, or 0.5%, at 17,729.21, with 26 of its 30 components closing lower.
The Nasdaq Composite COMP, -0.39% lost 18.39 points, or 0.4%, to 4,726.01.
John Manley, chief equity strategist at Wells Fargo, noted that deterioration in earnings expectations on the backdrop of the rising dollar and deflation fears are behind recent market volatility.
“At the moment, forward price-to-earnings ratios are ok, not a reason to buy or to sell. We have to get through earnings malaise and see expectations rise, for markets to go higher,” he added.
Colin Cieszynski, chief market analyst at CMC Markets, attributed today’s Wall Street jitters to overseas events, such as trade data from China and Greece’s posturing with the European Central Bank.
“There is also a realization that the Fed will raise rates this year. Current volatile environment favors short-term investors, who can take advantage of price swings, while long-term investors are on the sidelines, as valuations are pretty high,” Cieszynski added.
Concerns over what will happen to Greece and its debt weighed on markets.
Greece’s Prime Minister Alexis Tsipras on Sunday dismissed the country’s European Union and International Monetary Fund bailouts and said he wouldn’t ask EU leaders for any extension. The country has until Feb. 16 to make the request. The Stoxx Europe 600 SXXP, -0.74% dropped 1%, and the Greece ASE Composite Index GD, -4.75% slid 6% on Monday.
