Energy weighs on Wall Street

US STOCKS slipped on Monday, led by the energy sector as oil prices dropped, while investors awaited the next run of major earnings reports and sought further clarity on President Donald J. Trump’s economic policies.

The benchmark S&P 500 receded after climbing close to a record high on Friday.

US equities have rallied since Mr. Trump’s November election, spurred by hopes for fiscal stimulus, lower taxes and fewer regulations under the Republican-led federal government.

EUPHORIA ENDS

“The market is starting to come down from its euphoric high and realize that maybe not everything is going to be solved in the first 100 days,” said Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa.

“There’s a lot of uncertainty,” he noted.

The Dow Jones Industrial Average fell 19.04 points, or 0.09%, to 20,052.42, the S& P 500 lost 4.86 points, or 0.21%, to 2,292.56 and the Nasdaq Composite dropped 3.21 points, or 0.06%, to 5,663.55.

RISK

Goldman Sachs economists said a fiscal boost to the United States is more likely in 2018 than this year because “the balance of risks is somewhat less positive” one month into 2017 and Mr. Trump’s growth-boosting agenda could be offset by negative effects of trade and immigration restrictions.

“There are concerns regarding the backlash against any protectionist policies that come out of Washington and other countries and investors are seeking clarity,” said Adam Sarhan, chief executive officer at 50 Park Investments.

MORE RESULTS AWAITED

Nine of 11 major S&P sectors ended lower. Energy shares fell 0.90% as oil prices declined.

In earnings news, Hasbro shares jumped 14.10% after the No. 2 US toymaker reported record holiday-quarter revenue.

Tyson Foods fell 3.50%. The company disclosed it had received a subpoena from US authorities that it said likely stemmed from allegations the company conspired to fix chicken prices.

Several major companies will report results later in the week, including Gilead Sciences, Walt Disney and Coca-Cola.

More than half of S& P 500 companies have reported fourthquarter results, and about twothirds of them beat Wall Street expectations, according to Thomson Reuters I/B/E/S.

About 6 billion shares changed hands in US exchanges, below the 6.7 billion daily average over the last 20 sessions.

Declining issues outnumbered advancing ones on the NYSE by a 1.63-to-1 ratio; on Nasdaq, a 1.73to-1 ratio favored decliners.

The S& P 500 posted 15 new 52-week highs and one new low; the Nasdaq Composite recorded 108 new highs and 24 new lows. —