Shares of industrial and transportation companies fell as traders braced for reports of a slowdown in earnings reports. Strategists at one brokerage said corporate profit margins and the interest-rate outlook could soon be affected by rising wages. "The labor costs have been rising through this cycle, but now the pace of growth is picking up just as top-line growth slows materially, a tough combination for US corporate profits," said strategists at brokerage Morgan Stanley, in a research note. "Pressures becoming more apparent in the coming earnings seasons pose risks for both equities and the economic cycle." Vectrus shares rallied after the government contractor received a contract from the U.S. Army.
-Rob Curran, firstname.lastname@example.org