* Urban Outfitters earnings due after the bell
* U.S. 10-year yield hits fresh 2-yr high
* Dow, S&P down less than 0.1 pct; Nasdaq up 0.2 pct
By Rodrigo Campos
NEW YORK, Aug 19 U.S. stocks were little changed
on Monday, following the Dow industrials' largest weekly drop in
more than a year, as traders positioned for an expected move by
the Federal Reserve to scale back its economic stimulus.
Bets that the Fed would begin to wind down its $85 billion a
month in asset purchases were felt in other markets, and the
U.S. benchmark 10-year yield rose to a two-year high of 2.875
The higher yield could further hurt dividend-paying,
low-growth equity sectors like utilities and healthcare. Last
Friday, the S&P 500 healthcare sector saw its largest
weekly drop since November 2011.
Capital-intensive industries like large industrials and some
miners, alongside utilities, could see their stocks fall out of
favor if yields and interest rates continue to rise, according
to Kim Forrest, senior equity research analyst at Fort Pitt
Capital Group in Pittsburgh.
"Anybody with a large amount of short-term debt," she said,
speaking of sectors to watch for a possible selloff due to
higher rates. "And if they pay a dividend, it can be at risk."
With little expected this week in the way of economic
indicators, market participants are focused on the minutes of
the latest Fed meeting, expected on Wednesday.
The Dow Jones industrial average fell 11.67 points or
0.08 percent, to 15,069.8, the S&P 500 lost 0.79 points
or 0.05 percent, to 1,655.04 and the Nasdaq Composite
added 8.939 points or 0.25 percent, to 3,611.717.
Zillow shares fell 4.8 percent to $86.88 after the
company announced a stock offering and said it agreed to buy New
York real estate website StreetEasy for $50 million.
Saks Inc reported a deeper-than-expected
second-quarter loss, pressured by markdowns. The company's stock
was unchanged at $16.02 as the company is in the process of
being acquired by Hudson's Bay for $16 per share.
Supernus Pharmaceuticals shares jumped 20.5 percent
to $8 after the company said it will soon launch an epilepsy
drug after having received final approval from the U.S. Food and
A U.S. federal bribery investigation into whether JPMorgan
Chase & Co hired the children of key Chinese officials
to help it win business was the latest in a series of legal and
regulatory headaches for Chief Executive Jamie Dimon. The bank's
shares fell 1.5 percent to $52.50.
There are no major economic indicators due for release on
Monday. Urban Outfitters is due to report results after
the closing bell.