Geopolitical Tension Weakens US Stocks
Ren Benavidez | | Jul 22, 2014 01:38 AM EDT |
(Photo : REUTERS/Brendan McDermid) Specialist trader John O'Hara gives a price just after the opening bell on the floor of the New York Stock Exchange July 21, 2014.
US stocks closed lower on Monday as investors kept a worried look at the ongoing tension in Russia following the Malaysia Airline Flight MH17 shot down in Ukraine.
The Standard and Poors (S&P) 500 index fell 0.2 percent or four points to 1,973.64 in New York.
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McDonalds and Yum! Brands Inc lost 1.5 and 4.3 percent, respectively, after they stopped buying meat from a supplier in China that is currently under investigation.
Hasbro Inc. fell 3 percent after the toy maker reported revenue that missed the target.
Herbalife Inc. has the biggest loss with 11 percent, when its manager Bill Acman claimed that the company is fraudulent.
There was a 4 percent drop for Six Flags Entertainment after the reported revenue missed the investors' estimates.
The Dow Jones Industrial Average lost 0.3 percent to 17,051.73 and lost a total of 174.45 points.
The S&P 500 regained 1 percent picking up from its April loss following the downing of the Malaysian Airlines plane and the invasion in the Gaza Strip.
During the stock closing last week, the S&P 500 increased 0.5 percent after Google made a sizeable number of shares, according to Marketwatch.
Prudential Financial analyst Quincy Krosby said the investors would not react to the events in Russia if they didn't think that the earnings of companies will be affected.
Krosby said all the investors think about is making profits and would not concern themselves with geopolitical issues unless it would impact the market.
US President Barack Obama stopped the index losses when he called for a ceasefire in Gaza.
Obama addressed the news of the downed plane by urging Russian President Vladimir Putin to take action and responsibility on the matter.
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