U.S. Stocks Close Lower As Mood Turns Cautious After Recent Highs

(RTTNews) - U.S. stocks closed weak on Monday, coming off historic highs hit in the previous session, as investors largely stayed cautious amid a lack of triggers, and looked ahead to more earnings news and economic data.

Further, geopolitical concerns and worries about spikes in coronavirus cases in several countries raised uncertainty about the pace of global economic recovery, contributing to the lackluster movements in the market.

The major averages all ended in negative territory. The Dow ended down 123.04 points or 0.36 percent at 34,077.63. The S&P 500 closed lower by 22.21 points or 0.53 percent at 4,163.26 and the tech-laden Nasdaq ended down 137.58 points or 0.98 percent at 13,914.77.

The market's retreat was due largely to some heavy selling in the technology space. U.S. stocks had moved on to historic highs last week, riding on buoyant economic data and some upbeat earnings announcements.

Coca-Cola Co. (KO) revealed earnings for first quarter that declined from the same period last year.nThe company's profit came in at $2.25 billion, or $0.52 per share. This compares with $2.78 billion, or $0.64 per share, in last year's first quarter. Excluding items, The Coca-Cola Company reported adjusted earnings of $2.40 billion or $0.55 per share for the period. The stock closed modestly higher.

International Business Machines Corp. (IBM) shares rose sharply after the company reported earnings of $955 million, or $1.06 per share or the first quarter of this financial year, compared with $1175 million, or $1.31 per share, in last year's first quarter. Analysts had expected the company to earn $1.63 per share, according to figures compiled by Thomson Reuters.

In overseas trading, Asian stocks ended mostly higher on Monday as positive earnings updates and upbeat economic data from the United States boosted optimism about a solid global economic recovery.

European markets closed on a mixed note with investors largely making cautious moves, tracking quarterly earnings announcements and other corporate news for direction.