Despite an intraday S&P record high, stocks were mostly lower on Monday on weakness in the energy markets. Bobbi Rebell reports.
Stocks lost steam after the S&P 500 hit an intraday record high on Monday. The early upward momentum came from tech stocks like Apple and Google parent Alphabet. But a drop in oil prices weighed on energy stocks, pulling down the markets. Russell Investments' Stephen Wood: SOUNDBITE: STEPHEN WOOD, CHIEF MARKET STRATEGIST, RUSSELL INVESTMENTS (ENGLISH) SAYING: "Valuations, which are bumping up against all time highs broadly speaking are looking rich. So we just think it is time for investors to sell those rallies in U.S. equities space and use that underweight to look globally in a multi-asset strategy. " Tesla is buying its sister company SolarCity for $2.6 billion. Elon Musk, chairman of Tesla and SolarCity, is the largest shareholder in both companies. That deal was $200 million less than the initial offer. Shares of both companies fell. Verizon is buying GPS vehicle tracking firm Fleetmatics for $2.4 billion in cash. It's paying a 40 percent premium to Friday's closing stock price. China's Didi Chuxing is buying Uber's China operations. The merger will give Uber a 20 percent stake in Didi. The deal follows a brutal two year price war. U.S. manufacturing activity slowed in July on weak orders according to the Institute for Supply Management. However at a level of 52.6, its index remains above the benchmark 50. It still indicates an expansion. A report from the Commerce Department showed construction spending declined to its lowest level since June of 2015. In Europe, red across the board for the three major indexes after several banks performed poorly in a Europe-wide stress test.