Stock Market News for January 24, 2017

All the key U.S. indexes fell on Monday following rising uncertainties regarding Trump's economic policies. However, benchmarks pared some of yesterday's losses after the President announced to reduce financial regulations and corporate taxes. Separately, record rise in U.S. rig counts weighed on oil prices , which in turn dragged energy stocks. Additionally, investors swallowed mixed bag of earnings results.

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 19,799.85. The S&P 500 fell 0.3% to close at 2,265.20. The tech-laden Nasdaq Composite Index closed at 5,552.94, losing 2.39 points. The fear-gauge CBOE Volatility Index (VIX) advanced 2% to settle at 11.77. A total of around 6.15 billion shares were traded on Monday, in line with the last 20-session average. Advancers outpaced declining stocks on the NYSE. For 52% stocks that advanced, 44% declined.

What Weighed On the Benchmarks?

The 45 th U.S. President announced that the U.S. has formally exited from the Trans-Pacific Partnership, a trade deal with eleven other Pacific Rim nations. Moreover, during the weekend Trump announced that he will meet with his Mexican counterpart Pena Nieto and the Canadian Prime Minister Justin Trudeau to renegotiate the North American Free Trade Agreement (NAFTA). Trump's "protectionist" approach raised uncertainty among investors over his policies.

This in turn had a broad-based negative impact on key U.S. indexes. However, Trump stated that his administration may slash regulations by 75 percent or "maybe more," which helped markets trim some of the losses.

Separately, oil prices fell on Friday after Baker Hughes Incorporated ( BHI ) reported that U.S. oil and gas rig counts rose by 35 to 694 rigs last week, its biggest increase in almost six years. The U.S. oil rig count also increased by 29 rigs to 551, its biggest increase in less than four years. Both WTI and Brent crude fell 0.9% and 0.5% to $52.75 per barrel and $55.32 a barrel, respectively.

Additionally, shares of Halliburton Company ( HAL ) fell 2.9% after its fourth-quarter revenues missed the Zacks Consensus Estimate. However, the world's No. 2 oilfield-services company posted better-than-expected quarterly earnings. ( Read More )

Decline in oil prices and fall in Halliburton led the Energy Select Sector SPDR (XLE) to fall 1.1% and was the worst performing sector in the S&P 500. Key stocks from the sector including Transocean Ltd. ( RIG ) and Schlumberger Limited ( SLB ) fell 3.6% and 2.6%, respectively. Both the companies possess a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

In other company news, Qualcomm Incorporated's ( QCOM ) shares plunged 12.7% after it has been pressed with a $1 billion lawsuit by tech giant Apple Inc. ( AAPL ). The lawsuit was related to licensing royalty payments. Decline in Qualcomm weighed on the tech-based index Nasdaq. ( Read More )

Shares of McDonald's Corporation ( MCD ) fell 0.7% after its same-stores sales in the U.S. decreased 1.3% during last quarter. However, the company reported encouraging quarterly results. ( Read More )

Stocks That Made Headlines

Verizon Posts Mixed Q4: Earnings Lags, Revenues Top

Verizon Communications Inc. ( VZ ) reported mixed financial numbers in the fourth quarter of 2016. ( Read More )

J&J Q4 Earnings Top; Seeks Options for Diabetes Unit

Johnson & Johnson ( JNJ ) reported a rather mixed fourth quarter, with earnings beating expectations while sales missing the same. ( Read More )

Nintendo's Pokemon Go Makes a Late Entry in South Korea

After a six month delay, Nintendo Co Ltd ( NTDOY ) has now officially launched its blockbuster hit game, Pokémon Go in South Korea. ( Read More )

Aetna's Merger with Humana Foiled by Regulators, Stock Down

Federal authorities reviewing the proposed Aetna Inc. ( AET ) and Humana Inc. ( HUM ) mega merger have now blocked the deal. ( Read More )

Shell to Divest its Stake in SADAF Joint Venture for $820M

Royal Dutch Shell plc ( RDS.A ) recently signed a contract to offload the remaining 50% of its joint venture with leading chemical manufacturing company Saudi Basic Industries Corp. ( Read More )

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Baker Hughes Incorporated (BHI): Free Stock Analysis Report

Transocean Ltd. (RIG): Free Stock Analysis Report

Schlumberger N.V. (SLB): Free Stock Analysis Report

QUALCOMM Incorporated (QCOM): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

McDonald's Corporation (MCD): Free Stock Analysis Report

Verizon Communications Inc. (VZ): Free Stock Analysis Report

Johnson & Johnson (JNJ): Free Stock Analysis Report

Nintendo Co. (NTDOY): Free Stock Analysis Report

Aetna Inc. (AET): Free Stock Analysis Report

Humana Inc. (HUM): Free Stock Analysis Report

Royal Dutch Shell PLC (RDS.A): 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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