Investing.com – U.S. stocks closed lower but remained at near record levels, as downbeat economic data weighed on the prospect of stronger U.S. economic growth while shares of Apple slid, following a rare downgrade.
U.S. stocks had a negative start to the week, as all three indexes closed lower on Monday, after geopolitical tensions resurfaced while data showed a slight dipped in U.S. services activity.
U.S. non-manufacturing activity grew at a slower pace in May, as the Institute for Supply Management on Monday said its non-manufacturing index fell 0.6 points to 56.9 in May.
In a separate report, the Commerce Department said Monday that Factory orders dipped 0.2% in April, in line with forecasts.
Geopolitical tensions triggered demand for safe havens, albeit briefly, after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed ties with Qatar on Monday, accusing it of supporting terrorism.
On the New York Mercantile Exchange crude futures for July delivery fell 0.55% to settle at $47.40 a barrel.
In corporate news, share of Apple Inc (NASDAQ:AAPL) closed 1% lower, after Pacific Crest analyst Andy Hargreaves downgraded the stock to sector weight from overweight, citing potential risks such as supply issues with the new iPhone 8.
The Dow Jones Industrial Average close at 21,118.04, down 0.10%. The S&P 500 closed 0.12% lower while the Nasdaq Composite closed at 6295.98, down 0.64%
Markets brace for risk events ahead
On Thursday, investors will contend with a raft of risk events that threaten the recent rally in equities.
The European Central Bank (ECB) kicks-off a busy day with an interest rate decision and press conference from ECB president Mario Draghi.
The UK heads to the polls in the general election, whose outcome has become much less certain of late, after the latest opinion poll predicted that the Conservatives may fall short of the required number of seats for a majority.
A YouGov poll on Sunday, suggested that the Conservatives will win only 305 seats in the House of Commons, above Labour’s 268 but well short of the 326 seats needed for a majority.
Meanwhile in Washington on Thursday, former FBI director James Comey is due to testify before the Senate Intelligence Committee about Russia’s alleged involvement in the U.S election and President Trump’s alleged attempt to halt an investigation into former national security advisor Michael Flynn.
The ‘Bulls and Bears’ on Wall Street
The top Dow gainers for the session: Wal-Mart Stores Inc (NYSE:WMT) up 0.8%, Exxon Mobil Corporation (NYSE:XOM) up 0.8%, while Microsoft Corporation (NASDAQ:MSFT) rose 0.7%.
Apple Inc (NASDAQ:AAPL) down 1%, United Technologies Corporation (NYSE:UTX) down 0.9% and Caterpillar Inc (NYSE:CAT) down 0.7%, were among the worst Dow performers of the session.