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Stocks dip, ending two-day winning streak

The New York Stock Exchange in Manhattan.
(Bryan R. Smith / AFP/Getty Images)
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Stocks closed slightly lower Monday, capping a mostly quiet day of U.S. trading that eased the market back from record highs set late last week.

Utilities and materials companies posted some of the biggest losses. Energy stocks led the gainers, even as crude oil prices declined. Technology companies and banks also bucked the downward trend. Google parent Alphabet closed above $1,000 a share for the first time.

The dip snapped a two-day winning streak for stocks, which have been mostly pushing higher this year. The major stock market indexes hit new highs last Thursday and Friday.

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“Equities are digesting the gains from last week,” said Michael Baele, senior portfolio manager at U.S. Bank Private Wealth Management.

The Standard & Poor’s 500 index dipped 2.97 points, or 0.1%, to 2,436.10. The Dow Jones industrial average fell 22.25 points, or 0.1%, to 21,184.04. The Nasdaq composite index lost 10.11 points, or 0.2%, to 6,295.68.

Small-company stocks fell more than the rest of the market. The Russell 2000 slid 8.94 points, or 0.6%, to 1,396.45.

Encouraging economic data, low interest rates, strong consumer confidence and solid company earnings have helped keep investors in a buying mood this year, driving U.S. stocks higher.

Traders had their eye on geopolitical developments, including the terrorist attack in London over the weekend and the decision by members of a Saudi-led coalition to withdraw their diplomatic staff from Qatar over its support for Islamist groups and its relations with Iran.

Benchmark U.S. crude slid 26 cents, or 0.5%, to close at $47.40 a barrel in New York. Brent crude, used to price international oils, fell 48 cents, or 1%, to close at $49.47 a barrel in London.

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Bond prices fell. The 10-year Treasury yield inched up to 2.18% from 2.19% late Friday, when it sank to its lowest level of the year.

Investors bid up shares of some technology companies, giving the sector a slight gain. Google’s parent, Alphabet, which eclipsed the $1,000 per share threshold for the first time. The search giant’s stock added $7.76, or 0.8%, to $1,003.88.

Herbalife was among the day’s big movers. The Los Angeles-based seller of supplements and weight-loss products slid 6.7% after it lowered its second-quarter revenue and volume projections. The company noted that a switch to new sales tactics is affecting its business in the U.S., and sales in Mexico were weak. The stock lost $4.93 to $68.99.

Forestar Group surged 12.7% after homebuilder D.R. Horton offered to buy a 75% stake in the real estate and natural resources developer for $16.25 a share. Forestar rose $1.80 to $16. D.R. Horton shed 50 cents, or 1.5%, to $33.29.

Several of the major overseas stock indexes closed lower. Britain’s FTSE 100 slipped 0.3% as investors focused on the fallout from Saturday’s attack in London, which killed seven people.

Qatar’s main stock index tumbled 7.3% after Bahrain, Egypt, Saudi Arabia and the United Arab Emirates announced they would withdraw their diplomatic staff from Qatar. In Asia, Japan’s Nikkei 225 ended flat, while Hong Kong’s Hang Seng fell 0.2%.

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Gold rose $2.50 to $1,282.70 per ounce. Silver added 6 cents to $17.58 per ounce, while copper lost 2 cents to $2.56 per pound.

In currency trading, the euro fell to $1.1255 from $1.1276 on Friday. The dollar weakened to 110.49 from 110.50 yen.


UPDATES:

2:20 p.m.: This article has been updated to include the market’s close.

This article was originally published at 7:40 a.m.

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