Stocks were mostly quiet Monday ahead of the Fed's two-day monetary policy meeting, which starts Tuesday. Mergers took center stage, while Nike (NKE) weighed on the Dow.
The Dow Jones industrial average gave up 0.1%, while the S&P 500 and Nasdaq were fractionally lower. Volume was lighter across the board vs. Friday, according to preliminary figures.
Oil, generic-drug and shoe/apparel makers underperformed in the stock market today, as prices for West Texas intermediate crude slumped 4% to below $47 a barrel. Auto parts makers, gold miners and utilities were among the biggest gainers.
Nike was the biggest Dow loser; it gapped down and fell nearly 4% in fast turnover to a 14-month low. Shares are well below their 50-day moving average and 200-day line, and 26% off a November high.
Also among blue chips, Exxon Mobil (XOM) fell 2% in big volume. Shares are still working on a flat base with a potential buy point at 95.65.
Mergers made headlines Monday, as Baker Hughes (BHI) and General Electric (GE) agreed to merge GE's oil and gas services business with Baker Hughes. Both stocks reversed early gains; Baker Hughes went from gaining 5% to losing 6% in five times normal turnover, while GE ended down 0.4%.
Constellation Brands (STZ) climbed nearly 1% on news that the producer of alcoholic beverages will acquire Anheuser-Busch InBev's (BUD) Grupo Modelo brewery in Mexico for $600 million. Anheuser Busch gave up 1.1% in heavy volume.
Economic data on tap Tuesday include the ISM manufacturing index and purchasing managers' index for October; construction spending in September; and U.S. motor vehicle sales for October.
A busy earnings schedule Tuesday includes Coach (COH), Electronic Arts (EA), Paycom Software (PAYC), Pfizer (PFE) and Pioneer Natural Resources (PXD).
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