US stocks closed lower on Monday with weaker oil prices and investors anxious about Apple (NASDAQ:AAPL) earnings due the next session, but they pared losses before the final bell.
The broad-based S&P 500 was down 0.2% at 2,087, while the S&P Midcap 400 shed 0.5% to 1,469, and the S&P Smallcap 600 underperformed among tickers, down 0.8% at 696.
The US oil benchmark West Texas Intermediate was down 1.8% at $42.95.
Markets were also awaiting the US interest rate decision from the Federal Reserve on Wednesday.
Midsession
US shares were soft at midsession on Monday as worries over Apple earnings this week and poor European and Asian trading conditions overnight helped push investors off the fence ahead of the Federal Reserve's rate decision on Wednesday.
Markets were also depressed by weaker oil prices. The US oil benchmark West Texas Intermediate was down 1.4% at $43.10.
The broad-based S&P 500 index was down 0.34% at 2,084, while the S&P Midcap 400 shed 0.87% to 1,464, led by Advanced Micro Devices (NASDAQ:AMD), down 13.5% to $3.45 after giving back some of the post-earnings gains it racked up on Friday.
The S&P Smallcap 600 underperformed among tickers, down 1.14% at 694.
Open
US markets slumped ahead of the two-day Federal Reserve meeting that starts tomorrow.
Poor trading in Europe and Asia overnight combined with worries over Apple’s results tomorrow unsettled investors.
The Dow Jones Industrial Average shed 122 points to 17,881, Nasdaq was 17 lower at 4,889 while the S&P 500 eased back 11 to 2,080.
Weak oil markets also caused some concern again as markets waited for an indication from the Saudi’s decision on future production.
Crude was a few cents lower at US$43.29.
Apple (NASDAQ:AAPL) shares eased 1% lower to US$104.70 on worries over iPhone sales with reports that the tech titan may have sold more watches that phones in its latest quarter. Details are out tomorrow.
Xerox Corp (NYSE:XRX) tumbled after lower earnings than forecast. After one-off costs earnings shrank by 85%, knocking 11% off the price of the copier giant that is planning to split in two.
Halliburton meanwhile delayed its first quarter statement until next month knocking 1% off the oilfield services giant to US$40.29.
Irish drugmaker Perrigo (NYSE:PRGO) tumbled 13% to US$105 after a profit warning and indication there may be write-downs ahead.
Chief executive Joseph Papa is off, but it may be a case of out of the frying pan and into the fire as he is joining troubled Canadian drug group Valeant.
Papa, 60, will join Valeant by early May and will also be on its board. The controversial Quebec-based pharma has expanded quickly by buying rivals and in some cases rapidly increasing the price of their products.
Valeant shares rose 4% to US$37.30.