US close: Markets mixed as trade tensions linger

US stocks finished on a mixed note on Monday, as trade tensions resurfaced after China called off planned trade talks with Washington over the weekend and as fresh tariffs on Chinese imports kick in.

The Dow Jones Industrial Average ended its session down 0.68% at 26,562.05 and the S&P 500 lost 0.35% to 2,919.37, while the Nasdaq 100 added 0.23% to 7,548.75.

Traders were also reacting to the fact that US and European Union officials were set to meet to talk about trade over the coming week.

“While markets no doubt believe that the current trade concerns are unlikely to be the beginning of a long-term phenomenon, the latest breakdown in talks highlights the possibility that this will rumble on for some time yet,” said Joshua Mahony, market analyst at IG.

“With the US midterms ahead, Trump is unlikely to give any concessions at the risk of seeming less effective, thus lessening any hopes of a breakthrough in the coming months.”

A 10% levy on $200bn worth of Chinese goods was due to come into effect at noontime on Monday.

Meanwhile, China has retaliated to this US levy by announcing tariffs on an additional $60bn of imports from the US.

Oil stocks could be a bright spot as Brent crude hit its highest level since 2014, climbing above $80 a barrel after OPEC and its allies refrained from agreeing a production increase over the weekend.

On Friday, some traders had been speculating that the Organisation of Petroleum Exporting Countries might decide on a 500,000 barrel a day increase in their combined output when they next met.

On the data front, the three-month moving average for the Chicago Fed's national activity index for August printed at +0.24, which was up from a reading of +0.02 for the month before, boosted by gains in indicators linked to production and for sales, orders and inventories.

In corporate news, Michael Kors shares were 8.23% lower following reports it was on the cusp of agreeing a $2bn deal to buy Italian fashion house Versace.

Elsewhere, Comcast was down 5.99% after the media giant outbid 21st Century Fox over the weekend for London-listed broadcaster Sky.

A proposal from the chief executive officer of Sears to sell assets in order to pay down its debt sent its stock down 2.36%.

Shares in Micron Technology were ahead 0.94% even after analysts at Needham cut their target price on the chipmaker's shares from $100 to $80, albeit while reiterating their 'strong buy' recommendation.

Barrick Gold was also wanted, rising 5.44% after inking a deal to purchase rival Randgold Resources for $6.0bn.

Dow Jones - Risers

Walt Disney Co. (DIS) $112.77 1.83%
Exxon Mobil Corp. (XOM) $86.60 1.68%
Apple Inc. (AAPL) $220.79 1.44%
Chevron Corp. (CVX) $122.61 1.29%
Intel Corp. (INTC) $46.91 0.54%
Microsoft Corp. (MSFT) $114.67 0.36%
Unitedhealth Group Inc. (UNH) $267.36 0.26%
Cisco Systems Inc. (CSCO) $48.44 -0.25%
Pfizer Inc. (PFE) $43.93 -0.30%
Merck & Co. Inc. (MRK) $70.81 -0.45%

Dow Jones - Fallers

Dowdupont Inc. (DWDP) $68.20 -2.14%
Home Depot Inc. (HD) $207.99 -2.07%
Procter & Gamble Co. (PG) $84.27 -1.69%
Johnson & Johnson (JNJ) $140.48 -1.69%
Verizon Communications Inc. (VZ) $53.54 -1.62%
Caterpillar Inc. (CAT) $154.00 -1.52%
United Technologies Corp. (UTX) $140.34 -1.23%
Travelers Company Inc. (TRV) $132.83 -1.20%
Boeing Co. (BA) $368.00 -1.14%
Walgreens Boots Alliance, Inc. (WBA) $72.20 -1.10%

S&P 500 - Risers

Edwards Lifesciences Corp. (EW) $165.47 7.68%
Alexion Pharmaceuticals Inc. (ALXN) $128.51 5.34%
Chesapeake Energy Corp. (CHK) $4.66 5.07%
Eog Resources Inc. (EOG) $123.99 3.78%
Symantec Corp. (SYMC) $21.69 3.78%
Abbott Laboratories (ABT) $71.43 3.46%
Apache Corp. (APA) $47.49 3.35%
Marathon Petroleum Corporation (MPC) $85.79 2.98%
Andeavor (ANDV) $159.01 2.68%
Devon Energy Corp. (DVN) $41.55 2.54%

S&P 500 - Fallers

Newell Brands Inc (NWL) $20.45 -6.24%
GameStop Corp. (GME) $15.52 -6.00%
Comcast Corp. (CMCSA) $35.63 -5.99%
Alcoa Corporation (AA) $41.96 -4.14%
American Airlines Group (AAL) $41.98 -3.72%
Delta Airlines Inc. (DAL) $57.41 -3.69%
Molson Coors Brewing Co. Class B (TAP) $62.48 -3.55%
General Electric Co. (GE) $11.74 -3.53%
International Paper Co. (IP) $52.34 -3.29%
Wyndham Destinations Inc. (WYND) $42.50 -3.28%

Nasdaq 100 - Risers

Alexion Pharmaceuticals Inc. (ALXN) $128.51 5.34%
Symantec Corp. (SYMC) $21.69 3.78%
Mercadolibre Inc. (MELI) $331.38 3.66%
Netflix Inc. (NFLX) $369.61 2.33%
Intuitive Surgical Inc. (ISRG) $569.27 2.25%
Align Technology Inc. (ALGN) $388.96 2.13%
Take-Two Interactive Software Inc. (TTWO) $134.88 2.13%
Workday, Inc. (WDAY) $141.50 2.07%
Twenty-First Century Fox Inc Class B (FOX) $44.65 1.73%
Asml Holdings N.V. (ASML) $191.47 1.61%

Nasdaq 100 - Fallers

Sirius XM Holdings Inc (SIRI) $6.26 -10.32%
JD.com, Inc. (JD) $24.51 -7.47%
Comcast Corp. (CMCSA) $35.63 -5.99%
American Airlines Group (AAL) $41.98 -3.72%
Liberty Global plc Series A (LBTYA) $28.36 -3.04%
Dish Network Corp. (DISH) $35.42 -2.99%
Ctrip.Com International Ltd. Ads (CTRP) $38.27 -2.89%
Wynn Resorts Ltd. (WYNN) $132.98 -2.74%
Monster Beverage Corp (MNST) $58.30 -2.59%
PACCAR Inc. (PCAR) $70.36 -2.55%