The US markets closed lower on Monday, as the S&P 500 snapped a three-day winning streak after mixed earnings. There were no major economic data scheduled for Monday. Over the past two weeks, investors have shown to be jittery after controversial policy announcements, such as travel ban applying to people from seven predominantly Muslim countries. The head of an influential US business group said that any move to tear up the North American Free Trade Agreement (NAFTA) would devastate the economies of members Canada, Mexico and the United States. US President Donald Trump, who says NAFTA has been a disaster for American workers wants to renegotiate the deal and says he is prepared to walk away if he does not get the changes he wants. Meanwhile, the Federal Reserve in a quarterly survey reported that loan officers at US banks reported largely unchanged lending standards and slightly looser terms for business loans in the last three months of 2016. About a third of the 69 institutions surveyed, however, said they had tightened somewhat the standards for commercial real estate construction and land development loans, and close to a fifth had tightened standards on loans secured by multifamily properties. The survey results indicate the effect of the Fed’s recent interest rate increase may be falling differently across the economy. About as many loan officers - around 14 percent - reported stronger demand for loans as reported weaker demand.
The Dow Jones Industrial Average lost 19.04 points or 0.09 percent to 20,052.42, Nasdaq was down 3.22 points or 0.06 percent to 5,663.55, while S&P 500 dropped 4.86 points or 0.21 percent to 2,292.56.
The Indian ADRs closed mostly in red; Dr. Reddy’s Lab was down 0.74%, Tata Motors was down 0.09% and Wipro was down 0.04%. On the other hand, HDFC Bank was up 0.16% and ICICI Bank was up 0.12%.