Stock Market News for February 07, 2017

Benchmarks finished in the red on Monday following lack of clarity among investors over President Trump's economic policies. Investor concerns over Trump's recent actions on banning immigration from several countries continued to have a broad-based negative impact on key indexes. Additionally, oil prices declined after crude oversupply concerns weighed on investor sentiment.

For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) decreased 0.1%, to close at 20,052.42. The S&P 500 fell 0.2% to close at 2,292.56. The tech-laden Nasdaq Composite Index closed at 5,663.55, losing 0.1%. The fear-gauge CBOE Volatility Index (VIX) advanced 3.7% to settle at 11.37. A total of around 6 billion shares were traded Monday, lower than the last 20-session average of 6.7 billion. Decliners significantly outpaced advancing stocks on the NYSE. For 59% stocks that declined, 37% advanced.

What Weighed on The Benchmarks?

Investors remained skeptical over Trump's approach on foreign trade and economic policies. Recently, in an executive order, Trump had banned immigration from seven Muslim-majority countries, including legal residents and visa holders. In this context, the Department of Justice (DOJ) requested the 9th U.S. Circuit Court of Appeals to reinstate this executive order on Sunday.

Trump's travel ban has already drawn congressional criticism and widespread protests. These protectionist measures may also cloud the path for pro-business initiatives as several world and corporate leaders have condemned the ban. Trump's steps to restrict immigration continued to weigh on broader markets despite the fact that his latest move to scale back financial regulations was welcomed by investors.

Additionally, oil prices fell on Friday after Baker Hughes Incorporated ( BHI ) reported that U.S. oil and gas rig counts rose by 17 to 729 rigs last week. U.S. oil rig counts also increased, by 17 rigs to 583, registering its third consecutive week of two-digit gains. Both WTI and Brent crude fell 0.6% and 0.4% to $53.54 per barrel and $56.56 a barrel, respectively.

Decline in oil prices led the Energy Select Sector SPDR (XLE) to fall 0.8% and emerge as the worst performing sector in the S&P 500. Some of its key holdings including Devon Energy Corporation ( DVN ) and TechnipFMC plc ( FTI ) fell 3.3% and 4.1%, respectively. Devon Energy possess a Zacks Rank #3 (Hold) and TechnipFMC hold a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Stocks That Made Headlines

Archer Daniels Q4 Earnings Miss, Increase Y-o-Y

Archer Daniels Midland Company ( ADM ) posted fourth-quarter 2016 results, wherein both sales and earnings increased year over year. ( Read More )

21st Century Fox Beats on Q2 Earnings, Revenues Lag

Twenty-First Century Fox, Inc. ( FOXA ) reported better-than-expected earnings for the third straight quarter. ( Read More )

BP plc Misses Q4 Earnings on Weak Refining Margin

BP plc ( BP ) reported lower-than-expected fourth-quarter 2016 earnings primarily owing to weaker refining margins. ( Read More )

Michael Kors Tops Q3 Earnings, View Hurts Stock

Michael Kors Holdings Ltd. ( KORS ) continued with its positive earnings surprise streak for the seventh-consecutive quarter, when it posted third-quarter fiscal 2017 results. ( Read More )

Tesoro Corporation Q4 Earnings and Revenue Beat

Tesoro Corporation ( TSO ) reported fourth-quarter 2016 adjusted loss from continuing operations per share, which surpassed the Zacks Consensus Estimate of loss. ( Read More )

Gap Posts Solid January and Q4 Comps, Stock Rises

The Gap Inc. ( GPS ) posted solid comparable store sales (comps) and sales results for Jan 2017 (four weeks ended Jan 28, 2017) as well as fourth-quarter fiscal 2016. ( Read More )

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Devon Energy Corporation (DVN): Free Stock Analysis Report

FMC Technologies, Inc. (FTI): Free Stock Analysis Report

Baker Hughes Incorporated (BHI): Free Stock Analysis Report

Archer-Daniels-Midland Company (ADM): Free Stock Analysis Report

Twenty-First Century Fox, Inc. (FOXA): Free Stock Analysis Report

BP p.l.c. (BP): Free Stock Analysis Report

Michael Kors Holdings Limited (KORS): Free Stock Analysis Report

Tesoro Corporation (TSO): Free Stock Analysis Report

Gap, Inc. (The) (GPS): Free Stock Analysis Report

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

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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