NEW YORK — Some encouraging corporate news failed to give the broader stock market a boost on Monday, and stocks edged lower as investors waited for news on the outlook for the Federal Reserve’s interest rate policy.
NEW YORK — Some encouraging corporate news failed to give the broader stock market a boost on Monday, and stocks edged lower as investors waited for news on the outlook for the Federal Reserve’s interest rate policy.
Hewlett-Packard jumped after announcing that it is splitting itself in two. One company will focus on personal computers and printing and the other on technology services. Medical-equipment maker Carefusion surged on word that it was being acquired by its rival Becton Dickinson and Co.
But after opening higher, stocks gave up their early gains and alternated between small gains and small losses.
The market’s bull run has faltered in recent weeks and the Standard &Poor’s 500 index logged its biggest monthly drop since January last month. Stocks rebounded from that slump on Friday after a report showed a pickup in hiring last month, but many investors remain uncertain about the outlook for stocks as the Fed nears the end of its bond-buying stimulus program and considers raising rates.
“The tug of war between the bulls and the bears is ongoing now,” said Quincy Krosby, a market strategist at Prudential Financial.
The S&P 500 fell 3.08 points, or 0.2 percent, to 1,964.82. The Dow Jones industrial average dropped 17.78 points, or 0.1 percent, to 16,991.91. The Nasdaq composite fell 20.82 points, or 0.5 percent, to 4,454.80.
Hewlett-Packard gained after announcing that it is splitting itself in two. One company will focus on personal computers and printing and the other on technology services such as data storage, servers and software. The stock climbed $1.67, or 4.7 percent, to $36.87.
Carefusion jumped $10.58, or 22.9 percent, to $56.75 on news that it was being acquired by a rival. New Jersey medical equipment maker Becton Dickinson and Co. said it will pay $12.2 billion for the company, in a combination focused on medication systems for hospitals and pharmacies. Becton climbed $9.14, or 7.9 percent, to $124.98.
The Fed is due to release minutes on Wednesday of its policy meeting last month and the central bank will end its bond purchases this month. Now investors are watching for clues about the likely timing of any interest rate hike.
Investors should remember that if the Fed is raising rates, it will be because the economy is strengthening, said Karyn Cavanaugh, a senior market strategist at Voya.
“If the potential rise in interest rates is predicated on stronger growth….and if the market recognizes that earnings are good, and the economy is good then (higher rates) it shouldn’t be much of an event,” said Cavanaugh.
H&R Block logged the biggest drop in the S&P 500 after saying that its latest attempt to sell its banking business is getting delayed in the regulatory approval process. The tax preparer said it would not be able to complete the deal before the next tax season. Its stock dropped $1.75, or 5.5 percent, to $29.91.
Nasdaq-listed GT Advanced Technologies, a supplier to Apple, was also among the day’s biggest losers.