Stocks down on light trading day
NEW YORK — Losses for health care companies and banks left U.S. stocks lower Monday after a quiet day of trading. Industrial conglomerate General Electric skidded after announcing more changes in its leadership.
The Standard & Poor’s 500 index dipped 4.60 points, or 0.2 percent, to 2,544.73. The Dow Jones industrial average shed 12.60 points, or less than 0.1 percent, to 22,761.07. The Nasdaq composite fell 10.45 points, or 0.2 percent, to 6,579.73, which ended a nine-day winning streak. The Russell 2000 index of smaller-company stocks lost 6.66 points, or 0.4 percent, to 1,503.56.
Stock trading was light because of the Columbus Day holiday. Bond trading was closed.
Companies that distribute or sell prescription drugs continued to slide after speculation that Amazon plans to get into that business, something the company has not confirmed.
Banks dipped after a big rally over the past month, and technology companies continued to climb. Smaller, more domestically focused companies declined as investors tried to gauge the odds that Congress passes taxcutting legislation.
Stocks have rallied over the past two weeks as investors hope tax cuts proposed by President Donald Trump’s administration and congressional Republicans will improve corporate profits. But over the weekend, Trump had a war of words with Sen. Bob Corker of Tennessee, a retiring Republican who has a reputation as a budget hawk. Republicans have a narrow majority in the Senate, and losing just a few votes could derail a bill.
“There really is not much leeway there,” said Mona Mahajan, U.S. investment strategist for Allianz Global Investors. “They somehow have to get their act together.”
General Electric slipped after it named Ed Garden of Trian Fund Management to its board of directors. Trian, a well-known activist investment firm founded by Nelson Peltz, has been pushing the conglomerate to slim down. GE shares fell 96 cents, or 3.9 percent, to $23.43. It’s down 26 percent this year.
GE has announced a slew of changes in its leadership this month. John Flannery replaced Jeffrey Immelt as chairman a week ago, several months ahead of the schedule the company announced in June. On Friday, GE said Chief Financial Officer Jeffrey Bornstein will leave at the end of the month.
Companies that distribute or sell prescription medicines or administer prescription drug benefits tumbled for a second day as investors continued to worry about Amazon entering the prescription drug business. Analysts raised that possibility Friday. Amazon has declined to comment.
Pharmacy benefits manager Express Scripts fell $3.14, or 5 percent, to $59.22, and prescription drug distributor McKesson dropped $3.15, or 2.1 percent, to $148.14. Walgreens gave up $2.33, or 3.2 percent, to $70.87, its lowest close in more than a year and a half.
Electric car maker Tesla declined after the Wall Street Journal reported on the company’s struggles in producing its new, lower-priced Model 3 sedan. The Journal reported Friday that Tesla workers were making some Model 3 parts by hand as recently as September. Also last week, Tesla missed its third-quarter production goals. The stock fell $13.94, or 3.9 percent, to $342.94.