Dow, S&P slip from record highs on year's lowest volume

The Dow and the S&P 500 dipped on Monday in the thinnest volume so far this year, following their record closing highs last week as a lack of major news left the market directionless.

 

Although about 100 companies in the S&P 500 are still scheduled to report earnings, the season is winding down sharply after last week's deluge. The week is also thin in terms of market-moving macroeconomic data.

 

"It was a pretty quiet day," said Paul Zemsky, head of asset allocation at ING Investment Management in New York. "We're almost done with earnings, and the quarter will remain lackluster. It's hard to disappoint, but earnings are not fantastic."

 

About 4.6 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, the lowest for a full day of trading so far this year. Daily volume has averaged about 6.4 billion shares this year. Last year, August posted the lowest monthly average volume on US exchanges.

 

The technology sector was the S&P 500's best performer. A rally in Apple and Facebook shares helped the Nasdaq Composite Index finish Monday's session with a slim gain. Apple rose 1.5% to $469.45 after the United States overturned a ban on the sale of some older iPhones and iPads. Facebook, which was the Nasdaq's most actively traded stock, jumped 3% to $39.19 after a brokerage upgrade.

 

Data suggesting economic recovery in the UK and US economies was improving showed British businesses boomed and activity at euro-zone companies expanded modestly in July, while growth in the US services sector rebounded from a three-year low.

 

"PMIs were better than people thought, and that tells us this idea that the second half could be stronger is still valid. But right now, it's just wait and see," Zemsky said.

 

The Dow Jones industrial average fell 46.23 points or 0.3%, to end at 15,612.13. The S&P 500 slipped 2.53 points or 0.15%, to finish at 1,707.14. But the Nasdaq Composite Index added 3.364 points or 0.09%, to close at 3,692.951.

 

United Technologies Corp and The Travelers Companies were the Dow's biggest%age decliners. United Technologies shares slid 1% to $106.64, while Travelers shares fell 1% to $83.15.

 

The Washington Post Co. shares shot up 3.8% after the bell following news that Amazon Inc

 

On the earnings front, shares of Tyson Foods climbed 4.1% to $29.69, a record closing high, after giving a full-year revenue outlook that exceeded expectations.

 

In contrast, US-listed shares of HSBC Holdings Plc fell 4.5% to $55.37 after the company reported a drop in revenue, hurt by slower emerging markets.

 

Shares of retailer Fossil dropped 6% to $107.42 on three times their recent average volume after Barclays downgraded the stock to "underweight."

 

Of the 391 companies in the S&P 500 that have reported earnings for the second quarter, 67.8% have topped analysts' expectations, in line with the average beat over the past four quarters, data from Thomson Reuters showed. About 55% have reported revenue above estimates, more than in the past four quarters but below the historical average.

 

US-listed shares of Compugen Ltd soared 44.5% to $7.89 after the company said it would enter into a cancer research partnership with Bayer AG .

 

Declining issues outnumbered advancers on the NYSE by a ratio of about 3 to 2. On the Nasdaq, the opposite trend prevailed, with 14 stocks rising for about every 11 that fell.