Stocks closed down slightly on Monday, recovering from steeper losses in early trading, as July West Texas Intermediate crude oil climbed to a 22-year closing high of $59.37 a barrel. This kept an overhang on equities, but stock indexes rebounded briefly to positive territory after oil trading closed on the NYMEX at 2:30 p.m. ET, according to Standard & Poor's MarketScope. Refined product supply concerns continue to drive oil prices higher, while speculative fund buying has picked up recently, according to Action Economics.
The Dow Jones industrial average fell 13.96 points, or 0.13%, to 10,609.11. The broader Standard & Poor's 500 index was down 0.86 point, or 0.07%, to 1,216.1. The tech-heavy Nasdaq composite lost 1.98 points, or 0.09%, to 2,088.13.
There are no major economic reports being released on Tuesday. "Traders look for bonds to remain range bound ahead of upcoming key events including next week's FOMC meeting and the following week's June employment figures," says economic research outfit Action Economics.
Among companies in the news Monday, Cablevision Systems (CVC) says the Dolan Family Group proposes to take the company private by acquiring Cablevision's cable and telecommunications businesses. It says the deal would deliver an estimated $33.50 a share to public shareholders. The stock surged 19% on the news.
H.J. Heinz (HNZ) says it inked a deal with Groupe Danone S.A. to acquire a number of leading culinary sauce brands for about $855 million in cash.
Boeing (BA) shares fell on news that the aircraft maker lost a $6 billion order from Air Canada.
On the earnings calendar, Carmax (KMX) reported first-quarter earnings per share of 37 cents. vs. 33 cents a year ago, on a 6% same-store sales rise and 19% total sales rise.
Ipsco (IPS) shares fell after the company warned that second-quarter earnings per share will be close to $2.45, lower than expected. The steel and pipes producer cited increased pricing pressure for steel products and delayed purchase orders.
In economic news, U.S. leading indicators fell 0.5% in May, well below the median forecast of a 0.3% drop and flat in April.
This week's economic calendar is light. Wednesday brings a report on existing home sales for may, which are expected to rise to an annualized pace of 7.04 million. On Thursday, investors will see two May reports: durable goods orders for May, which are expected to rise 2.3%, and new home sales, which are expected to rise to a 1.33 million annualized rate.
Treasury prices fell, sending the 10-year Treasury yield up to 4.09%. In low-volume trade, Treasuries got caught in the crossfire of bund price swings in the wake of reports that the European Central Bank might consider easing under certain circumstances and a volley of U.S. corporate debt issuance that set up some rate-lock hedging, says Action Economics. Yields initially jumped higher thanks to these influences, ignoring the negative leading indicators print, but finished off their highs, reports Action Economics.
European stock markets finished lower on Monday. London's FTSE 100 index was down 5.6 points, or 0.11%, to 5,072 amid higher oil prices
Germany's DAX index fell 17.71 points, or 0.38%, to 4,586.86 on higher oil prices, disarray in the European Union over budgets, and other issues after last week's meeting.
In Paris, the CAC 40 index lost 27.51 points, or 0.65%, to 4,193.4.
Asian markets finished mixed on Monday. In Japan, the Nikkei index fell 30.68 points, or 0.27%, to 11,483.35 on profit taking after a six-day winning streak.
In Hong Kong, the Hang Seng index rose 33.74 points, or 0.24%, to 13,945.77, bucking weakness elsewhere in Asia. Sentiment was boosted partly by resilience on Wall Street Friday in the face of higher oil prices. Bank of Communications priced its IPO at the high end of its targeted range given a strong response from investors.