Investing.com -- U.S. stocks fell slightly on Monday, erasing some of their sharp gains from late last weeks, as investors resumed their pattern of range-bound, sideways trading, which has proliferated for the majority of the last month following a Post-Brexit surge at the start of the summer.
The Dow Jones Industrial Average fell 14.24 or 0.08% to 18,529.29, suffering marginal losses one session after soaring more than 1% last Friday. Stocks failed to sustain momentum from Friday's rally brought about by a robust U.S. jobs report for the month of July that helped provide a considerable tailwind to slumping financial stocks. The NASDAQ Composite index lost 7.98 or 0.15% to 5,213.14, while the S&P 500 Composite index dipped by 1.98 or 0.09% to 2,180.89, each retreating from record closing highs from the prior session.
On the S&P 500, stocks in six of 10 sectors closed in the red, as stocks in the Health Care, Telecom and Consumer Services industries lagged. Stocks in Energy and Basic Materials sectors led, each gaining more than 0.20% on the session. At session-highs, the S&P 500 hit a fresh all-time record intraday high of 2,185.44 on Monday morning.
Meanwhile, the CBOE VIX Volatility Index inched up 0.11 to end Monday's session at 11.50. Last Friday, the Vix fell to a two-month low of 11.18, down sharply from a high of 14.24 on August 2. The lack of volatility on equity markets on Wall Street reflects the recent sideways trading of late, as investors have largely avoided bonds due to near-record low yields.
The top performer on the Dow was Exxon Mobil Corporation (NYSE:XOM), which gained 0.96 or 1.10% to 88.52. It came as U.S. crude futures jumped by nearly 3% to $43 a barrel, extending a weeklong rally from three-month lows hit early last week. The rebound was driven by bullish comments from OPEC president Mohammed bin Saleh al-Sada on the possibility of an accord by the 14-member cartel at a meeting in Algeria in late-September aimed at stabilizing the volatile global energy market. U.S. crude futures are still down sharply from their June highs of $51 when WTI crude traded at a 10-month high.
The worst performer was Merck & Company Inc (NYSE:MRK), which lost 1.17 or 1.83% to 62.69. Shares in Merck retreated on Monday, one session after the pharmaceutical giant soared more than 10% after rival BMY reported disappointing results with a late stage clinical trial for treating advanced non-small cell lung cancer. The developments could open a window for Merck to seize market share with sales of its drug Keytrada. Also on Monday, WMT shares fell slightly from 0.41 or 0.56% to 73.35 after the retail giant announced that it has closed on a $3 billion cash merger of Jet.com, marking the largest acquisition of a private e-commerce company on record. In addition, another $300 million in Walmart shares will be paid incrementally as part of the transaction, Walmart said in a statement.
"We’re looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that’s what our customers want," said Doug McMillon, president and CEO, Wal-Mart Stores (NYSE:WMT), Inc. "We believe the acquisition of Jet accelerates our progress across these priorities. Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time."
The biggest gainer on the NASDAQ was Liberty Interactive Corp A (NASDAQ:QVCA), which added 0.78 or 3.78% to close at 21.39 on Monday. Shares in Liberty Global (NASDAQ:LBTYA), the parent company of home shopping network of QVC, crashed 21% on Friday after the Colorado-based media holdings company warned that it could be moving into a "choppy retail environment," marred by weakening consumer demand. The worst performer was Incyte Corporation (NASDAQ:INCY), which fell 2.80 or 3.08% to 88.04. Shares in the Delaware-based pharmaceutical company are still up by more than 30% over the last three months.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 1,665-1,291 margin.