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US stocks close mostly higher as Dow rebounds from weekly loss

Published 2017-08-21, 04:16 p/m
© Reuters.  The dow posted a weekly loss last week
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Investing.com – U.S. stocks closed mostly higher on Monday, shaking off losses in energy and financials as investors welcomed a relatively turmoil-free day in Washington, after escalating domestic political tension last week pressured stocks to a weekly loss.

In what was quiet day on the economic calendar and the domestic political front, U.S. stocks advanced on thin volumes as investors looked ahead to key events later this week including speeches by central bankers Mario Draghi and Janet Yellen.

Turmoil in Washington over recent sessions has reduced sentiment on U.S. stocks, which fell to weekly loss last week, as investors questioned whether the controversies engulfing President Trump would further delay his ability to introduce pro-growth economic measures.

“the political risk of Trump’s presidency remains a driving factor.” Richard Perry, a Hantec Markets analyst, said of the recent swings in U.S. stocks.

Geopolitical tensions on the Korean Peninsula resurfaced, however, after the U.S. and South Korea began annual military exercises that have a history of enraging Pyongyang.

Pyongyang warned on Sunday that the annual U.S.-South Korea military exercises are “reckless behavior driving the situation into the uncontrollable phase of a nuclear war.”

Also weighing on gains was a slump in energy amid falling Crude Oil WTI Futures, as investor concerns grew over a fall in demand for crude and gasoline as the summer driving season nears an end.

On the corporates earnings front, investors looked ahead to the release of the last wave earnings from tech companies with Salesforce.com Inc (NYSE:CRM) set to report results after U.S. markets close tomorrow.

The Dow Jones Industrial Average closed lower at 21,703. The S&P 500 closed 0.12% higher while the Nasdaq Composite closed at 6213, down 0.05%.

The biggest losers on Wall Street

The top Dow gainers for the session: Home Depot Inc (NYSE:HD) up 1.2%, Cisco Systems Inc (NASDAQ:CSCO) up 1% and Verizon Communications Inc (NYSE:VZ) up 0.9%

Nike Inc (NYSE:NKE) down 2.4%, Chevron Corporation (NYSE:CVX) down 0.7% and Goldman Sachs Group Inc (NYSE:GS) down 0.6%, were among the worst Dow performers of the session.

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