* Apple down after Needham downgrade
* Energy stocks rise as Brent crude tops $70/barrel
* Defensive utilities gain amid rush for safety
* Indexes down: Dow 0.43%, S&P 0.25%, Nasdaq 0.25%
(For a live blog on the U.S. stock market, click LIVE/ or
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By Sruthi Shankar
Jan 6 (Reuters) - U.S. stocks fell for a second session on
Monday, led by financial and technology stocks, as escalating
tensions between the United States and Iran pushed investors
toward safe-haven assets such as gold and government bonds.
After ending 2019 on a strong note, Wall Street's main
indexes have been knocked off record levels as the killing of a
top Iranian general by the United States last week raised the
threat of a new conflagration in the Middle East. Tehran has threatened to avenge the killing of its
commander, Qassem Soleimani, while President Donald Trump has
warned that the United States would strike back, "perhaps in a
disproportionate manner", if Iran retaliated.
Investors sold some of 2019's star performers including
technology stocks .SPLRCT , which fell 0.3%. Apple Inc AAPL.O
was down 0.4% after brokerage Needham downgraded to "buy" from
"strong buy", while Microsoft MSFT.O also dipped 0.4%.
The Philadelphia semiconductor index .SOX , which surged
about 60% last year, was down 0.9%.
Big lenders, including J.P. Morgan JPM.N , Bank of America
BAC.N and Morgan Stanley MS.N , were down between 0.5% and
1.3%, as U.S. Treasury yields fell. US/
"Tensions in Middle East raise concerns for investors
following what has been a really great period in markets," said
Rick Meckler, partner at Cherry Lane Investments in New Vernon,
New Jersey. "Certainly, some are using this as a reason to step
back a little bit."
The energy index .SPNY rose 0.3% as Brent crude futures
LCOc1 topped $70 per barrel after Trump also threatened
sanctions on Iraq if U.S. troops were forced to withdraw from
the country. O/R
At 10:03 a.m. ET, the Dow Jones Industrial Average .DJI
was down 122.97 points, or 0.43%, at 28,511.91, and the S&P 500
.SPX was down 8.01 points, or 0.25%, at 3,226.84. The Nasdaq
Composite .IXIC was down 22.75 points, or 0.25%, at 8,998.02.
The latest geopolitical concerns have added to fears that
anemic earnings growth and a less supportive Federal Reserve
could derail the longest bull run in U.S. equities in 2020.
"Until we get to the next earnings season, absent any big
news, investors are probably reluctant to commit a lot of new
capital at these levels, but are also not interested in pulling
back, which leaves markets a bit range-bound," said Meckler.
Shares of Boeing Co BA.N dropped 1.1%. A Wall Street
Journal report said the planemaker was considering plans to
raise more debt to bolster its finances after the grounding of
its 737 MAX jet. Among the few bright spots were the utilities index
.SPLRCU , considered a bond-proxy, and the communication
services index .SPLRCL , up 0.4%, lifted by a rating upgrade
for Alphabet GOOG.O .
Declining issues outnumbered advancers for a 2.01-to-1 ratio
on the NYSE and a 2.65-to-1 ratio on the Nasdaq.
The S&P index recorded 8 new 52-week highs and one new low,
while the Nasdaq recorded 22 new highs and 18 new lows.