U.S. equities finished mixed on Monday on quiet trading largely ignoring volatile overseas markets especially commodities as China continues to clamp down on speculation.
In the end, the Dow Jones Industrial Average lost 0.2%, the S&P 500 gained 0.1%, the Nasdaq Composite gained 0.3% and the Russell 2000 gained 0.3%. Treasury bonds and the U.S. dollar were stronger, while commodities — gold lost 2.2% and oil declined 2.9% — were wiped out.
Biotech stocks boosted healthcare to a 1.1% gain followed by consumer staples, which gained 0.6%. Krispy Kreme Doughnuts (KKD) rocketed by 24% after agreeing to be taken private by JAB Beech for $21 a share in cash in a $1.35 billion deal representing a 25% premium over Friday’s close.
Material and energy stocks were the laggards, down 1.3% each. LendingClub Corp (LC) lost 34.9% after the resignation of its CEO and the termination/resignation of three managers in response to weak internal controls.
After the close, Gap Inc (NYSE:GPS) reported a surprise same-store sales decline in April of 7% vs. the 0.5% gain expected and guided Q1 earnings in a range of 31 to 32 cents per share vs. the 44 cents analysts were expecting. Shares dropped 11% in extended trading.
Elon Musk’s SolarCity Corp (NASDAQ:SCTY) was getting pummeled by more than 20% in after-hours trading after the company’s quarterly loss came in 25 cents per share worse than expected. Q2 guidance also came in soft.
Turning to China, the Dalian commodity exchange said it would strengthen its market monitoring and might increase transaction fees to curb speculation.
There is also concern that Beijing might reduce policy support amid a softer-than-expected April trade data report. Exports dropped 1.8% from last year (vs. the 0.1% drop expected) while imports fell nearly 11% (vs. the 5% drop expected).
Chinese search giant Baidu Inc (ADR) (BIDU) lost 2.6% after Chinese regulators reportedly placed restrictions on healthcare ads which contribute nearly a third of the company’s search revenue.
