Dow Closes Low, But Notches Best August Since 1984

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Investing.com – The Dow closed lower Monday as energy and industrials fell, but handsome gains through the month saw the index notch its best August performance since 1984. 

The Dow Jones Industrial Average fell 0.78%, or 223 points, though it had been down 290 points at the lows of the day. The S&P 500 was down 0.25, while the Nasdaq Composite gained 0.68% to close at another record high.

Energy stocks led the move lower in the Dow as oil prices struggled in the wake of data showing U.S. crude production rose 4.2% to 10.436 million barrels per day in June, renewing oversupply concerns.

But Goldman Sachs (NYSE:GS) lifted its forecasts on Brent crude for the second-quarter of next year to $57.50 a barrel from $52 barrel previously amid expectations that vaccines will support global growth.

Apple’s stock split drew favorable commentary from multiple analysts on Wall Street ahead of the tech giant’s iPhone 12 launch.  

“With Apple’s 4:1 stock split effective this morning we are adjusting our price target to $150 and bull case to $175 accordingly. With Apple’s stock split this morning it speaks to Cook & Co. in a major position of strength with clear tailwinds heading into its iPhone 12 supercycle kicking off in early October,” Wedbush said in a note.

On the monetary policy front, Federal Reserve vice chairman Richard Clarida strengthened expectations that monetary policy will remain accommodative for a prolonged period, insisting that under the Fed’s new approach to inflation, a low unemployment rate by itself is unlikely to be a sufficient trigger for policy action.

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