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U.S. stocks retreat from 4-month highs, amid oil and earnings concerns

Published 04/04/2016, 04:17 PM
Updated 04/04/2016, 04:34 PM
The Dow, NASDAQ and S&P all fell broadly on Monday
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Investing.com -- U.S. stocks retreated from four-month highs on Monday, as investors expressed concerns on renewed declines in oil prices while bracing for a weak batch of quarterly results ahead of the start of first quarter earnings season.

On Monday, U.S. crude futures tumbled to fresh 1-month lows after analysts at BNP Paribas (PA:BNPP) predicted that oil prices could retest 13-year lows from earlier this year, amid mounting stockpiles worldwide. It also came in the wake of comments from Saudi Arabia late last week that the kingdom may resist any production freezes at a highly-anticipated meeting this month in Qatar unless Iran also agrees to cap output. While U.S. equities have broken free from crude prices in recent sessions, the major indices still remain closely linked to the volatile daily swings on global oil markets.

The Dow Jones Industrial Average lost 71.70 or 0.40% to 17,721.05, while the NASDAQ Composite index fell 22.74 or 0.46% to 4,891.80, both closing off session-lows. The S&P 500 Composite index, meanwhile, dipped 8.91 or 0.43% to 2,063.87, as eight of 10 sectors closed in the red. Stocks in the Basic Materials and Industrials sectors lagged, each falling by more than 1% on the session. Stocks in the Health Care and Telecommunications industries led.

The top performer on the Dow was Pfizer Inc (NYSE:PFE) (NYSE:PFE), which added 0.68 or 2.26% to 30.72, after analysts at Morningstar increased the pharmaceutical giant's credit rating to AA-. It came on the heels of a report that the company's PCSK 9 drug Bococizumab outperformed placebo counterparts at reducing LDL cholesterol in a recent 12-week trial. The worst performer was Nike Inc (NYSE:NKE), which fell 1.62 or 2.63% to 59.97. Shares in Nike (NYSE:NKE) are down roughly 8% since the athletic apparel giant reported lower than expected quarterly revenues last month.

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The biggest gainer on the NASDAQ was Vertex Pharmaceuticals Inc (NASDAQ:VRTX), which jumped 3.72 or 4.70% to 82.87, days after a wave of analysts upgraded the company to a "buy" late last week. Vertex currently has an average price target of $141.46, among a group of nearly 30 top analysts. The worst performer was Viacom B Inc (NASDAQ:VIAB), which fell 1.61 or 3.91% to 39.56. Shares in the prominent media company are down more than 40% over the last 52 weeks.

The top performer on the S&P 500 was Edwards Lifesciences Corporation (NYSE:EW), which hit an all-time record high at 107.90, before closing at 105.08, up 15.16 or 16.86%. Shares in Edward Lifesciences shot up on Monday after the California-based medical device company received optimistic results regarding the testing of a device commonly used for heart surgeries. The device, known as a trans-catheter aortic valve replacement, reported stronger results when using the company's Sapien 3 valve. Procedures using the valve lowered mortality rates and led to a lower occurrence of strokes, according to Edwards Lifesciences (NYSE:EW). The worst performer was PulteGroup Inc (NYSE:PHM), which fell 1.21 or 6.57% to 17.21 after CEO Richard Dugas announced plans to retire, amid increased pressure from the home builder's founding partners.

Shares in Virgin America Inc (NASDAQ:VA) skyrocketed 16.23 or 41.70 to 55.12, after its $4 billion merger with Alaska Air Group Inc (NYSE:ALK) on Monday in a deal which will create the fifth-largest airlines company in the U.S.

On the New York Stock Exchange, declining issues outnumbered advancing ones by a 2,279-814 margin.

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