U.S. stocks closed lower Monday, snapping a three-day rally, as a rising dollar and lower oil prices weighed on the industrial, utilities and energy sectors. Economists are looking ahead to corporate earnings from the financial sector Tuesday, including banking giant JPMorgan Chase & Co. and Wells Fargo & Co.
Other notable blue-chip companies reporting Tuesday include Intel Corporation and diversified health care company Johnson & Johnson.
The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped 80.61 points, or 0.45 percent, to close at 17,977.04. The Standard & Poor's 500 (INDEXNASDAQ:.IXIC) lost 9.63 points, or 0.46 percent, to end at 2,092.43. The Nasdaq composite (INDEXSP:.INX) fell 7.73 points, or 0.15 percent, to finish at 4,988.25.
General Electric Company (NYSE:GE) lost more than 3 percent Monday to close at $27.63, among the biggest laggards in the industrial sector. GE had previously hit an intraday high of more than $28 a share Friday, its highest level since December 2013, after the multinational conglomerate announced a major restructuring of GE Capital by exiting the financial services business.
The S&P 500 utilities sector dropped just over 1 percent Monday as Pinnacle West Capital Corporation (NYSE:PNW) and Public Service Enterprise Group Inc. (NYSE: PEG) lost 1.7 and 1.6 percent, respectively. Meanwhile, the S&P 500 energy sector lost almost 1 percent after Tesoro Corporation (NYSE:TSO) and Valero Energy Corporation (NYSE: VLO) were among the biggest laggards, dropping 4.4 percent and 3.7 percent, respectively.
The Nasdaq climbed above 5,000 in morning trading Monday, boosted by gains from Internet and biotechnology stocks. Shares of movie streaming service Netflix Inc. (NASDAQ:NFLX) rallied more than 4 percent Monday to close at $474.68 after UBS analyst Douglas Mitchelson upgraded its to Buy from Neutral.
The Nasdaq biotechnology index gained nearly 1 percent in morning trading after shares of Clovis Oncology Inc. (NASDAQ:CLVS) surged more than 11 percent to a new high of $89. Goldman Sachs upgraded its rating on the biopharmaceutical company Monday to Buy from Neutral. Clovis Oncology leaped more than 13 percent to close at $87.49.
Two factors that weighed on investor sentiment Monday afternoon were the U.S. dollar and lower oil prices. The greenback rose 0.13 percent to $99.47 on Monday against major world currencies as the euro dipped to $1.06.
Oil prices closed lower Monday, erasing early gains as investors continued to weigh a slowdown in U.S. drilling. West Texas Intermediate crude, the benchmark for U.S. oil prices, added 0.5 percent to close at $51.91 a barrel, for May 15 delivery, on the New York Mercantile Exchange. Brent crude, the benchmark for global oil prices, added 45 cents to end at $57.46 a barrel, for May 15 delivery, on the London ICE Futures Exchange.
Ahead on the economic calendar, the Commerce Department will release U.S. retail sales for March at 8:30 a.m. EDT on Tuesday, and experts predict sales will snap back this spring after harsh weather weighed on retailers this past winter. U.S. retail sales are a key economic indicator, since consumer spending accounts for nearly two-thirds of economic activity. Economists expect retail sales to rise 1 percent in March after falling 0.6 percent in February, according to analysts polled by Thomson Reuters.
Separately, the Labor Department will issue its Producer Price Index for March at 8:30 a.m. EDT. The Producer Price Index, which measures U.S. wholesale prices, fell in February for a fourth straight month, pointing to lower U.S. inflation. However, Wall Street expects producer prices to rise 0.2 percent in March after falling 0.5 percent in February.