Stocks take late turn to end lower
A late turn pulled the stock market to a loss Monday as major indexes wavered after a strong run last week.
Kansas City Southern slumped 8%, the biggest fall in the Standard & Poor’s 500 index, after the railroad operator trimmed its revenue estimates, pointing to falling fuel prices and the strengthening dollar. Its stock lost $9.21 to $106.48.
Major indexes started higher in morning trading, settled into an afternoon lull, then dropped in the last 10 minutes of trading.
The S&P 500 fell 3.68 points, or 0.2%, to close at 2,104.42. The Dow Jones industrial average lost 11.61 points, or 0.1%, to 18,116.04, and the Nasdaq composite slipped 15.45 points, or 0.3%, to 5,010.97.
Traders kept tabs on a meeting in Europe between the leaders of Greece and Germany for signs of progress in Greece’s debt negotiations. Greece faces a cash crunch in the coming weeks and is in talks with its European lenders on what steps it must take to receive more loans. Greece’s Prime Minister, Alexis Tsipras, committed to keeping a dialogue open on reforms that would qualify Greece for urgentlyneeded rescue loans.
Brad McMillan, chief investment officer at Commonwealth Financial, said he expects the market to head higher over the coming months because there appears to be nothing on the horizon capable of knocking it off course. Investors have pushed the S&P 500 to alltime highs despite concerns over Europe’s sluggish economy and slumping oil prices.
“Greece hasn’t pulled it down, deflation hasn’t pulled it down,” McMillan said. “Unless the Federal Reserve says it’s going to raise interest rates in June, I just can’t see what’s going to pull it down.”
Among other companies making moves, Gilead Sciences dropped after reports that the pharmaceutical company told physicians that nine patients taking its hepatitis C treatments developed slow heartbeats and that one died. Gilead slid $2.03, or 2%, to $100.26.
Tenet Healthcare surged 5% after news that the healthcare services company plans to launch a new hospital venture with a private equity firm. The company’s stock gained $2.45, or 5%, to $52.07.