Wall Street consolidates record highs and ends slightly lower

Wall Street closed slightly lower on Monday as traders piled into treasuries.

In US treasuries, investors are lured into the attractive yields and stemmed the post election aggressive sell-off today. The 10yr fell from 2.41% to 2.35%, the 2yr yield also fell from 1.17% to 1.12%. 

Both the Dow Jones Industrial Average and S&P 500 index snapped a four-day winning streak as Wall Street consolidates the record highs scored after Trump won the elections. Today,  the S&P 500 dropped 11.62 points, or 0.5%, to 2,201.73, while financials and energy stocks took the brunt of the bears. The Dow Jones Industrial Average fell 54.24 points, or 0.3%, to 19,097.90 and the Nasdaq Composite Index shed 30.11 points, or 0.6%, to 5,368.81.

Data was light, but positive with the Dallas Fed manufacturing that rose from -1.5 to 10.2 (vs 2.0 expected) – the first positive reading since 2014 and a sign of a pickup in producer sentiment, noted analysts at Westpac, adding," The future employment component more than doubled." Now, the focus remains with the US labour market conditions at the end of the week and the US Q3 GDP tomorrow. There's also Fedspeak from Dudley. The Fed funds futures continued to imply a 100% chance of a rate hike in December.

Market wrap: oil rebounds 2.8% on OPEC comments - Westpac