Investing.com – Wall Street traded slightly lower, with the S&P and Nasdaq shifting course and pulling back after hitting new record highs Monday, as investors digested the widely expected victory in the French presidential election by pro-European centrist Emmanuel Macron, weak Chinese trade data, along with some M&A news and remarks from Federal Reserve (Fed) officials.
At 11:17AM ET (15:17GMT), the Dow Jones slipped 18 points, or 0.09%, the S&P 500 lost 4 points, or 0.18%, while the Nasdaq Composite traded down 13 points, or 0.22%.
Macron beat anti-EU, anti-immigration far-rightist Marine Le Pen to clinch the French presidency in the second round of voting on Sunday.
The victory for Macron signaled that political risks in France and across Europe are receding, in the wake of the populist surge which resulted in Brexit and propelled Donald Trump to the White House.
The widely expected victory failed to impress investors and European equities spent most of Monday in negative territory with French stocks leading the laggards.
In other headlines, Chinese imports slowed much more than expected in April, while export growth more than halved in a sign that global trade momentum may be slipping.
Overall, China said exports rose 8.0% in April year-on-year, below the 10.4% gain seen, while imports rose 11.9% also below the 18.0% gain expected for a trade balance surplus of $38.05 billion, wider than the $35.50 billion seen.
The U.S. will be releasing no major economic reports on Monday though investors paid attention to another round of appearances from monetary policy makers.
St. Louis Federal Reserve (Fed) president James Bullard, the self-proclaimed most dovish member of the central bank, said Monday that “the policy rate is approximately at an appropriate setting today.”
Bullard had previously stated the same stance though he indicated that he would not be opposed to another hike.
Cleveland Fed chief Loretta Mester indicated that the central bank had met its employment mandate and was close to its inflation goal, suggesting that it should continue to raise rates.
According to Investing.com's Fed Rate Monitor Tool, Fed fund futures priced in a 77.6% probability that the next increase in interest rates will come at the next meeting in June.
In M&A news, Coach Inc (NYSE:COH) announced that it will acquire Kate Spade (NYSE:KATE) for $18.50 per share in cash for a total transaction value of $2.4 billion.
Sinclair Broadcast Group (NASDAQ:SBGI) that it will acquire Tribune Media (NYSE:TRCO) in a deal valued at $3.9 billion.
Sabra Health Care (NASDAQ:SBRAP) will pick up Care Capital Properties (NYSE:CCP) in a $7.4 billion all-stock operation.
Activist investor Elliott Management reported a 15.3% stake in Gigamon Inc (NYSE:GIMO), making it the software maker's top shareholder.
A mystery bidder offered $184 a share, topping a bid from AT&T (NYSE:T), to acquire Straight Path Communications (NYSE:STRP). CNBC reported that the bidder was Verizon (NYSE:VZ).
Dutch paint maker Akzo Nobel (AS:AKZO) rejected a third improved takeover offer of €26.3 billion ($28.8 billion) from U.S. rival PPG Industries (NYSE:PPG).
In big moves on earnings, shares in Newell Brands (NYSE:NWL) jumped 12% after the household products maker beat consensus on both the top and bottom line and raised its full-year guidance.
On the downside, Tyson Foods (NYSE:TSN) sank 5% as earnings per share came in just under consensus.
Meanwhile, oil continued a volatile session of trading despite a report that OPEC and other major oil producers were discussing extending the supply cut by nine months or more.
Countering those efforts, U.S. drillers added oil rigs for a 16th week in a row last week, extending a drilling recovery into a 12th month, energy services firm Baker Hughes said late on Friday.
U.S. crude futures slipped 0.06% to $46.19 by 11:21AM ET (15:21GMT), while Brent oil traded down 0.29% to $49.93.