By Mark DeCambre, MarketWatch , Ryan Vlastelica

Energy stocks, supported by rise in Brent futures, gain ground

The Dow Jones Industrial Average registered its fifth straight decline Monday, but stocks broadly managed to finish above session lows as gains in energy and technology shares helped to limit declines partly inspired by fears over trade tensions between the U.S. and China.

What did the main benchmarks do?

The Dow fell 103.01 points, or 0.4%, to 24,987.47, led by drops in Intel Corp. (INTC) and Boeing Co. (BA) shares. The benchmark hit a session low near the open, down 264.71 points, before stopping that tumble. The fifth decline in a row for the blue-chip gauge represents the longest such skid since a similar slump ended April 24.

The S&P 500 index closed down 0.2%, or 5.79 points, to 2,773.87, with a 1.5% fall in consumer-staples stocks and a 1% drop in health-care names pressuring the broad-market benchmark. Energy shares advanced 1.1%, while the S&P 500 technology sector finished with a 0.3% gain.

The Nasdaq Composite Index , meanwhile, ended less than a point higher, up 0.65 points, or less than 0.1%, at 7,747.03, with the technology-laden benchmark also reversing its early opening declines.

The Dow is up 1.1% for the year, while the S&P has gained 3.8%; both remain a few percentage points below record levels. The Nasdaq has advanced 12.2% for the year and is just below an all-time closing high hit Thursday.

Meanwhile the small-capitalization focused Russell 2000 index finished the day up 0.5% at a record at 1,692.46. Small-cap stocks have risen because they are perceived as being more insulated from trade spats.

What's driving markets?

Markets remain fixated on the escalating trade spat (http://www.marketwatch.com/story/the-only-dark-cloud-over-the-us-economy-is-trumps-trade-fights-with-well-everybody-2018-06-16) between the U.S. and China. President Donald Trump on Friday announced tariffs on $50 billion worth of Chinese imports (http://www.marketwatch.com/story/trump-announces-china-tariffs-says-us-will-pursue-more-if-china-retaliates-2018-06-15), and Beijing retaliated by targeting high-value American exports (https://www.wsj.com/articles/white-house-announces-tariffs-on-50-billion-of-goods-from-china-1529065534?mod=mktw).

See:Stock-market investors see China tariffs as a 'buzzkill' (http://www.marketwatch.com/story/stock-market-investors-see-china-tariffs-as-a-buzzkill-and-are-acting-as-if-a-genuine-trade-war-just-erupted-2018-06-15)

What are strategists saying?

"Trade tensions with China have consistently been the biggest driver of equity volatility recently," said Alec Young, managing director of global markets research at FTSE Russell, in a note. "If the current trade skirmish with China were to escalate into a full-blown trade war, it could potentially have a materially negative impact on corporate earnings growth."

Which stocks were in focus?

Shares in Tesla Inc. (TSLA)rose 3.5% after CEO Elon Musk showed off (http://www.marketwatch.com/story/elon-musk-shows-off-new-tesla-production-line-and-its-in-a-tent-2018-06-17) the electric-car maker's newest production line in a weekend tweet. He also predicted (http://www.marketwatch.com/story/elon-musk-says-tesla-shorts-will-get-blown-up-he-even-predicted-exactly-when-2018-06-18) that those who are short on Tesla -- meaning that they are betting for the stock to decline -- "have about three weeks before their short position explodes."

Valeant Pharmaceuticals International Inc. (VRX.T) sank 12.3% after the Food and Drug Administration failed to approve (http://www.marketwatch.com/story/valeant-shares-drop-5-after-fda-fails-to-approve-plaque-psoriasis-lotion-2018-06-18) a lotion product intended to treat plaque psoriasis.

U.S.-listed shares of Chinese e-commerce retailer JD.com Inc. (JD) rose 0.4% after Google invested $550 million in the company (http://www.marketwatch.com/story/google-invests-550-million-in-chinese-e-commerce-company-jdcom-2018-06-18). Google is a division of Alphabet Inc.(GOOGL) .

Solid Biosciences Inc. (SLDB) said the Food and Drug Administration had lifted its clinical hold (http://www.marketwatch.com/story/solid-biosciences-says-fda-has-removed-clinical-hold-on-sgt-001-dmd-treatment-2018-06-18-7912417) on the company's treatment for Duchenne muscular dystrophy, allowing a Phase 1/11 trial to resume. Shares surged by nearly 11%.

Rent-A-Center Inc. (RCII) jumped 22% after it agreed to be taken private (http://www.marketwatch.com/story/rent-a-center-to-be-taken-private-by-vintage-capital-in-deal-valued-at-about-14-billion-2018-06-18) by Vintage Capital, a private and public equity firm, in a deal valued at about $1.365 billion.

Ziopharm Oncology Inc. (ZIOP) plummeted 18.4% after the Food and Drug Administration placed a clinical hold (http://www.marketwatch.com/story/ziopharm-oncology-shares-slide-7-premarket-after-fda-places-clinical-hold-on-cancer-trial-2018-06-18) on a Phase 1 trial of a treatment for cancer.

In the energy sector, Marathon Oil Corp. (MRO) rose 1.7%, while Occidental Petroleum Corp. (OXY)closed up 0.6%.

Which economic reports were in focus?

The National Association of Home Builders' monthly confidence index fell two points to 68 in June (http://www.marketwatch.com/story/home-builder-sentiment-slumps-as-lumber-costs-soar-2018-06-18), in part due to rising lumber costs. The SPDR S&P Homebuilder ETF (XHB) fell 0.2%.

On the Federal Reserve front, Atlanta Fed President Raphael Bostic said Monday at the Rotary Club of Savannah that the central bank (http://www.marketwatch.com/story/atlanta-feds-bostic-says-more-rate-hikes-needed-to-make-policy-neutral-2018-06-18) still hasn't reached the so-called neutral rate -- where policy is neither accommodative nor restrictive.

Ahead, incoming New York Fed President John Williams was due to speak in New York at 4 p.m. Eastern at a conference focused on reforming behavior in financial services.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

What did other markets do?

European stocks finished lower (http://www.marketwatch.com/story/european-stocks-slump-as-merkel-comes-under-pressure-in-germany-2018-06-18), after Asian markets ended mostly lower (http://www.marketwatch.com/story/nikkei-leads-asian-markets-lower-amid-us-china-trade-tensions-2018-06-17), though Chinese markets were shut for a holiday.

Gold futures (http://www.marketwatch.com/story/gold-attempts-rebound-after-marking-2018s-lowest-settlement-2018-06-18)gained, the U.S. oil benchmark (http://www.marketwatch.com/story/us-oil-gauge-drops-while-brent-crude-rallies-2018-06-18)settled 1.2% higher at $65.85 a barrel, and Brent crude climbed 2.6%, rebounding after a sharp decline Friday. The ICE U.S. Dollar Index was little changed.

 

(END) Dow Jones Newswires

June 18, 2018 16:46 ET (20:46 GMT)

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