Falling tech stocks capped an early rally as investors opted for defensive sectors like utilities and telecom. Fred Katayama reports.
Stocks edged higher on Wall Street Monday. But falling tech stocks capped the rally. Dividend paying defensive sectors like utilities and telecom led the gainers. Peter Costa of Empire Executions: SOUNDBITE: PETER COSTA, PRESIDENT, EMPIRE EXECUTIONS, (ENGLISH) SAYING: "You're going to start seeing a little bit of risk-off, and that's where money will flow periodically. I don't think that particular move is going to be sustainable. You know, it's more about what's coming up in September, what are we going to see this summer. We're going to see more Fed talk about possible rate hikes blah blah blah." Disappointing new orders for capital goods. They fell in May when an increase had been expected. Pandora shares rose after the music streaming service said its founder and CEO Tim Westergren plans to step down. The news comes less than three weeks after Sirius XM said it would invest $480 million in the streaming music service. Pandora has struggled competing with Spotify and Apple Music. Micron Technology's shares climbed. Cowen upped its price target, saying it expects the chipmaker to beat Wall Street's estimates when it reports earnings later this week. A new face in Hollywood. The Wall Street Journal reports Facebook is in talks with Hollywood studios about producing scripted, TV-quality shows. Shares eased. In Europe, financials rallied after an Italian deal to wind up two failed regional banks, helping prop up the markets.