The key market indexes ended mixed Monday after searching for direction most of the session. Defensive sectors outperformed.
XTech stocks remained under pressure as the Nasdaq composite shed 0.7% to extend its slide for a third straight session. It fell as much as 1.7% intraday. The S&P 500 closed fractionally lower, while the Dow Jones industrial average eked out a 0.2% gain. Small caps pared sharp early losses as the Russell 2000 finished down 0.2%, according to preliminary data.
Volume ran slightly higher on the NYSE and lower on the Nasdaq, according to preliminary figures.
The S&P 500 roared back from a nearly 1% loss to close back above its 50-day moving average. It flashed a bearish signal midday by falling below the line. The Dow, which remains 2% above its 50-day and 1% off its record high, also staged a big reversal.
The market favored defensive stocks as food, utilities and medical stocks were among the day's top gainers. Automakers, software and networking stocks led the downside in the stock market today.
Walgreens Boots Alliance (WBA), up 2.3%, was the Dow's biggest gainer. Analysts expect the drugstore chain to grow earnings and revenue 10% and 12%, respectively, when it reports fiscal Q4 results Thursday after the close.
Other blue chips on the rise included Walmart (WMT) and Coca-Cola (KO), up a respective 1.5% and 1.3%. Drug giant Pfizer (PFE) added 0.9% to reach its highest level since 2001.
Non-Dow stock gainers included health care services provider LHC Group (LHCG), discount retailer Ollie's Bargain Outlet (OLLI) and restaurant operator Wingstop (WING). They rose about 1.5% each.
Visa (V), Cisco (CSCO) and Microsoft (MSFT) were among the Dow's biggest losers. Visa fell 2.4%, while Cisco and Microsoft lost more than 1% each.
Payment processor Square (SQ) tumbled more than 8% to test its 50-day moving average. BTIG reiterated a sell rating on the stock. But Goldman Sachs raised its price target to 108 from 77, citing Square's potential to grow faster than PayPal (PYPL). PayPal skidded 3%, falling below its 200-day line for the first time since May.
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