Wall Street took a slight downward turn Monday as it gave further consideration to last month's strong jobs numbers, and airline and Internet stocks lost altitude as well.
Job growth in June was much higher than expected, which bodes well for the economy, but the worry among some investors is that lower unemployment will lead to the Fed raising interest rates sooner than they'd like. The major indices fell after the Dow topped 17,000 last week.
The Dow Jones industrial average (^DJI) dropped 44 points, the tech-heavy Nasdaq composite (^IXIC) slipped 34 points and the Standard & Poor's 500 index (^GPSC) was down 7 points.
Airline stocks continued their descent after selling off last week. Delta (DAL) was down almost 4.5 percent, United-Continental (UAL) dropped more than 3 percent, and Jetblue (JBLU) fell 2.5 percent.
Internet stocks also had a tough day. Facebook (FB) was down 1.5 percent, Twitter (TWTR) dropped 2.5 percent and Amazon (AMZN) was lower by 1 percent.
But two smartphone makers benefited from good news. Apple (AAPL) gained 2 percent on analyst comments that its June sales were likely strong. The company is also expected to release an iPhone 6 and a smartwatch within the next few months.
And Blackberry (BBRY) popped more than 5.5 percent. Its latest model phones won three prestigious design awards. This is a great comeback story. So far the stock is up 39 percent this year.
One of the biggest gainers of the day was GoPro (GPRO), which rallied close to 6 percent in a rebound from last week's slight sell-off.
PetSmart (PETM) was another winner on the day, up 2.5 percent. A regulatory filing revealed the company is looking into ways to return more cash to shareholders.
Another major gainer was food-processing giant Archer Daniels Midland (ADM) up 1.5 percent. It has offered $3 billion to buy Swiss food company WILD Flavors.
In more mergers and acquisitions news, Expedia (EXPE) is seeking to acquire Australian online travel site Wotif.com for $660 million. Expedia was down 1.5 percent.
Chip maker Applied Materials (AMAT) gained slightly on the back of positive analyst comments.
But coal producer Peabody Energy (BTU) was one of the bigger losers on the day, falling 3.5 percent on a downgrade from Deutsche Bank.
-Produced by Karina Huber.
What to Watch Tuesday:
- The Labor Department releases job openings and labor turnover survey for May at 10 a.m. Eastern time.
- The Federal Reserve releases consumer credit data for May at 3 p.m.