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Close Update: Dow Slides as Industrials Face Impact of Higher Steel

Weighed down by losses in the industrial sector, especially in shares of heavy equipment makers, the Dow erased early gains and closed more than 150 points lower on Monday. Losses in component stocks Boeing ( BA ) and Caterpillar ( CAT ) outweighed gains in General Electric ( GE ) and Goldman Sachs ( GS ) and chased the blue chip index away from 25,500 at the open. The S&P 500 was also in the red, although the Nasdaq closed higher as a result of outsized gains in Tesla ( TSLA ) and Micron Technologies (MU).

Stocks were trending higher before the open in extension of Friday's rally that was unleashed by friendly labor market data. Emboldened by signs of limited wage inflation, watered-down trade tariffs and a warmer relationship between the US and North Korea, Wall Street's major averages were briefly trading higher, led by gains in component stocks Apple (AAPL) and Goldman Sachs, both of which set record highs at the open.

As the impact from higher steel prices undermined industrials, the Dow drifted off its opening highs and carved into Friday's 400+ point gain. The reversal was exacerbated by a spike in the volatility index and drop in the Dow below its 50-day moving average.

Although the Dow and S&P perked up into the close -- corresponding with a pull-back in the VIX under 16.00 -- neither could not make up for their earlier losses and closed in the red.

In corporate news, shares of Neflix (NFLX) retreated from its record high at the open and dropped 2% from Friday's close after short-seller Andrew Left from Citron Research tweeted to short the stock "back to $300," a 10% correction from today's high.

Goldman also set a record high, buoyed by reports that COO David Solomon has been positioned to succeed CEO Lloyd Blankfein. Blankfein is reportedly set to step down later this year.

DowDuPont (DWDP) shares were lower after CEO Andrew Liveris said he his stepping down after 14 years at the helm. Liveris will be succeeded by co-director Jeff Fettig.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was down 157.13 points (-0.62%)

S&P 500 was down 3.55% (-0.13%)

Nasdaq Composite Index was up 27.15 points (+0.36%)

GLOBAL SENTIMENT

FTSE 100 was down 0.13%

Nikkei 225 was up 1.65%

Hang Seng Index was up 1.93%

Shanghai China Composite Index was up 0.58%

UPSIDE MOVERS

(+) BXC (+77.52%) Acquiring building products wholesale distributor Cedar Creek for $413 billion

(+) OCLR (+27.52%) To be acquired by Lumentum (LITE) for $1.8 billion

(+) PRKR (+15.01%) Received a favorable venue ruling in patent infringement case against Qualcomm (QCOM) and Apple (AAPL)

(+) IMMP (+17.49%) Entered into clinical collaboration and supply agreement with Merck (MRK)

DOWNSIDE MOVERS

(-) ANTH (-80.87%) Terminated development of Sollpura after failed late-stage study

(-) OREX (-76.42%) Announced plans for a sale using structured process

(-) DECK (-7.41%) Marcato Capital Management sold its holdings

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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