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Stocks Close Lower But Pare Losses; Netflix Rises On Analyst Views

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The stock market pared losses but still closed lower Monday, as it faces the daunting task of stretching a long weekly win streak.

The Nasdaq fell 0.4%, although it had been down as much as 0.7%.

Netflix (NFLX) was one of the tech-rich composite's leaders Monday, rising more than 2%. An analyst at UBS upgraded the video streaming service to buy from hold and raised the price target, saying Netflix's subscriber targets looked too conservative.

The S&P 500 declined 0.3% and the Dow Jones industrial average 0.2%, as a 0.6% gain by Caterpillar (CAT) helped the blue chip average some. The small-cap Russell 2000 slid nearly 0.7% while the Dow transports dropped close to 0.8%.

Caterpillar climbed back above its 50-day line. Shares are up 3.1% since Jan. 1, lagging a 6.1% year-to-date gain for the Dow Jones industrial average.

Volume was lower Monday, according to preliminary figures.

The Nasdaq and S&P 500 have climbed the past six weeks, and it will be a challenge to keep that streak going. The market has a couple of major items that may keep investors cautious. On Friday, the employment report for February comes out. And next week, the Federal Reserve hold a meeting on monetary policy, and there's increasing expectations that short-term rates will be increased.

Airlines were one of the weakest industry groups after Delta Air Lines (DAL) warned that first-quarter unit revenue was on pace to be at the low end of its forecast. Also, President Trump reinstated temporary travel restrictions from several Muslim-majority countries.

Delta lost 2.6% to 48.85, closing below its key 50-day moving average in fast turnover.

Department stores, which have been weak for months, were down broadly Monday.

Energy, homebuilders and telecom stocks were among the day's best. Pulte Homes (PHM), Lennar (LEN) and KB Home (KBH) have risen past buy points in the past couple of weeks and are worth watching. Several other homebuilders are still forming bases, making the group one to study.

On Tuesday, LGI Homes (LGIH) and Urban Outfitters (URBN) are a couple of noteworthy companies reporting earnings.

The economic calendar is light, but at 8:30 a.m. the latest reports on trade balance and the Gallup economic confidence index are released.

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