U.S. stocks drifted lower in the late-afternoon trade on Monday as traders weighed fluctuations in crude prices and ahead of economic data expected in the Thanksgiving holiday week.
Ahead of the close of trading on Monday, the Dow Jones Industrial was down 0.2% at 17,784.60, the S&P 500 (INDEXSP:.INX) skidded 0.2% to 2,085.91, while the tech-heavy Nasdaq Composite inched down 0.1% to 5,101.10.
U.S. crude settled down 0.4% at $41.75 per barrel after seesawing between gains and losses.
This week's key economic reports include the third-quarter GDP on Tuesday and the price inflation measure for personal consumption expenditures due on Wednesday.
LUNCHTIME
By lunchtime Wall Street’s blue chip benchmarks had all turned positive.
The Dow Jones moved 19 points, 0.1%, higher to stand at 17,842 whilst the S&P 500 moved up 0.27% to 2,094.
At the same time the NASDAQ was up 16 points, 0.32%, at 5,121.
MONDAY’S OPEN
U.S. stocks were mixed at the open on Monday as traders considered oil prices and awaited economic data in the shortened Thanksgiving holiday week.
Pfizer (NYSE:PFE) and Allergan (NYSE:AGN) fell more than 2% after the drug makers said they will merge in a so-called inversion deal. Pfizer surrendered 2.3% to $31.43, while Allergan lost 2.5% to $304.76.
U.S. West Texas Intermediate crude futures were down $0.68 per barrel at $41.22 a barrel, having touched a session high of $42.75 after the Saudi Arabian cabinet reiterated its commitment to work with other producers.
PRE-MARKET
Whispers on Wall Street of a major M&A transaction, between Pfizer and Allergan, have grown louder over the weekend.
Allergan shares are seen higher in pre-market on the speculation that Pfizer will reveal a US$150bn takeover – which if true, will be among the largest ever deals.
In terms of the broader market the outlook was somewhat less enthusiastic.
Premarket dealing sees the Dow Jones down some 36 points 17,765 while the S&P 500 is a few points lower at 2,083 and the Nasdaq was also indicated lower.
Expectations of a pending interest rise has seen the US dollar strengthen significantly and has put further pressure of dollar denominated commodities, notably oil.
West Texas Intermediary crude was down more than 3%, changing hands just above US$40 per barrel, while Brent crude fell 2.2% to US$43.70.