The U.S. stock market took a small step back on Monday, giving up some of its big gains from last week.
Crude oil prices fell, pulling down energy stocks. Exxon Mobil lost 1.7 percent, the most in the Dow Jones industrial average. The price of oil slipped as traders weighed declining drilling in the U.S. against rising gasoline supplies that could crimp demand for crude in the coming weeks. Benchmark U.S. crude fell 14 cents to close at $59.25 a barrel in New York.
The market was coming off its biggest gain in two months on Friday following news that U.S. employers added 223,000 jobs in April, a solid gain suggesting that the economy may be recovering after a stumbling start to the year.
That sentiment helped cool off demand for bonds on Monday. As a result, the yield on the 10-year Treasury note rose to 2.26 percent, its highest level of the year so far.
“It’s a day of digestion after big news and a big move on Friday,” said Eric Wiegand, a senior portfolio manager at U.S. Bank Wealth Management.
The Dow fell 85.94 points, or 0.5 percent, to 18,105.17. The Standard & Poor’s 500 index lost 10.77 points, or 0.5 percent, to 2,105.33. The Nasdaq composite slipped 9.98 points, or 0.2 percent, to 4,993.57. The indexes are up for the month and year.
The indexes barely budged much of the day. Absent major new economic data, investors mostly focused Monday on the latest corporate deal news and company earnings.
Noble Energy’s $2.1 billion all-stock buyout of rival oil and gas production company Rosetta Resources failed to impress traders, however. Noble’s shares slumped $3.05, or 6.2 percent, to $46.07. It was the biggest decliner among S&P 500 companies.
The slide in oil prices also hurt stock prices for several other oil producers and drilling equipment companies. QEP Resources fell $1.13, or 5.2 percent, to $20.46, while Pioneer Natural Resources slid $6.07, or 3.8 percent, to $152.99. National Oilwell Varco shed $1.90, or 3.6 percent, to $51.33.
“We have crude down a little bit today and energy stocks are having a tough time,” said JJ Kinahan, TD Ameritrade’s chief strategist.
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