Telecom and other defensive sectors rallied Monday to offset declines in energy stocks. Fred Katayama reports.
Wall Street fought back from a morning deficit Monday. A rally by defensive sectors like telecom and healthcare offset declines in energy stocks. Simmering tensions between the U.S. and North Korea kept investors on edge. Keith Bliss of Cuttone & Company: SOUNDBITE: KEITH BLISS, SENIOR VICE PRESIDENT, CUTTONE & CO. (ENGLISH) SAYING: "Right now, we're in this lull. We're in the last two weeks of summer. And we've got the big monetary policy conclave out in Jackson Hole, Wyoming later in the week which is what the market participants are really waiting for. So you see that in the trade today. It is very soft. It is somewhat subdued, not a lot of volume, not a lot of action." Athletic apparel and sports retailers extended Friday's slide. Nike shares dragging on the Dow. Jefferies cut its rating on the athletic apparel maker to "hold" from "buy" and slashed its price target. Nike's distributors, Foot Locker and Finish Line, also falling sharply. Johnson Controls rose. The auto parts supplier said COO George Oliver will become chairman and CEO next month. Herbalife shot shares higher. The nutritional supplement maker is buying back shares worth $600 million now that it's ending talks of going private. In Europe, stocks extended their losses. Banks like Deutsche Bank and Societe Generale were among the top losers.