Stocks end mixed as Federal Reserve meeting nears

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Major U.S. stock indexes ended mixed Monday as investors turned cautious ahead of a key Federal Reserve interest rate policy announcement and other potentially market-moving developments on tap for this week.

Banks, retailers and communications companies took the brunt of the selling. Those losses were partially offset by gains in healthcare and household goods makers. Utilities and real estate stocks also rose as traders shifted funds into traditionally less risky assets.

“This is a marking-time sort of day with earnings coming up, with the Fed coming up, with the economic data coming up later this week,” said Willie Delwiche, investment strategist at Baird. “If anything, you have a modest reaction to the all-time highs that we saw on Friday and a chance to take profits, but not much conviction either way.”

Despite Monday’s selling, the record run at the end of last week kept the broader market on track for another month of gains. The S&P 500 is up 2.7% in July and the Nasdaq is up 3.6%. The healthcare sector rose, mostly propped up by pharmaceutical companies ahead of some key earnings reports. Some corporate deal news also helped boost the sector.

Booz Allen Hamilton rose 3.4% after the defense contractor’s quarterly profit and revenue beat analysts’ estimates.

 

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